HeatingAugust 25, 2025by mcmullen

Heat Pump Vs Furnace – Which Is Right For You?

Need help choosing the right heating system? Call McMullen’s at +1 (403) 342-1155  for expert advice on furnaces, heat pumps, or both.

Alberta homeowners face a unique challenge when choosing a heating system. With freezing winters and rising energy costs, it is important to choose a system that keeps your home warm without breaking the bank. So what is better for your home: a heat pump, a furnace, or a dual-fuel hybrid system? Let’s break it down.

What’s the Difference Between a Furnace and a Heat Pump?

  • Furnace: Uses natural gas, propane, or electricity to create heat. It burns fuel (or uses electric resistance) to generate warmth and distributes it through your home with a blower and ductwork.
  • Heat Pump: Transfers heat rather than generating it. In winter, it pulls heat from the outside air and brings it inside. In summer, it works in reverse like an air conditioner. It runs on electricity and is more energy-efficient in mild temperatures.

Which One Works Best in Alberta Winters?

  • Furnaces perform well in extremely cold climates like Alberta’s because they generate heat no matter how low the temperature drops.
  • Heat Pumps become less efficient in very cold temperatures, but recent models (cold-climate heat pumps) can still function well in temperatures as low as -25°C.
  • Dual-Fuel Systems combine both. The heat pump handles mild temperatures, and the furnace takes over when it gets too cold, optimizing both comfort and efficiency.

Cost Comparison

System Type Installation Cost Operating Cost (Alberta) Lifespan
Furnace Lower upfront (esp. gas) Lower with natural gas 15-20 years
Heat Pump Higher upfront Lower with electricity 10-15 years
Dual-Fuel System Highest upfront Most efficient long-term 15-20+ years

Energy Efficiency and Environmental Impact

  • Furnaces emit carbon dioxide and rely on fossil fuels (unless electric).
  • Heat Pumps use electricity and can be powered by renewables.
  • Dual-Fuel Systems reduce fuel consumption while still providing backup heat during extreme cold.

If reducing your carbon footprint is a priority, a heat pump or hybrid system may be the better choice.

Available Rebates in Alberta

Several programs can help reduce the upfront cost of installing a heat pump or hybrid system:

  • Canada Greener Homes Initiative: Grants up to $5,000 and $600 for EnerGuide evaluations. natural-resources.canada.ca
  • Clean Energy Improvement Program (CEIP): 100% financing repaid via property tax in eligible municipalities like Calgary, Edmonton, and Red Deer. Some areas offer a 10% rebate. ceip.abmunis.ca
  • Check Local Utility Rebates: New offers emerge based on funding availability. Contact McMullen’s or your local municipality for up-to-date programs.

Note: Incentive programs may change. Always confirm availability and eligibility before making a purchase.

When Should You Choose a Furnace?

  • You live in a rural area without reliable electricity
  • You want the lowest upfront installation cost
  • You prefer a simple, proven system with fewer components

When Should You Choose a Heat Pump?

  • Your priority is energy efficiency and lower carbon emissions
  • Your home is well insulated and air sealed
  • You are planning to upgrade both heating and cooling at once

When Is a Dual-Fuel System Best?

  • You want year-round comfort with the best efficiency
  • You need reliable heating in extreme Alberta cold
  • You want to balance natural gas and electric usage based on rates

Common Myth: Only Run Your Heating System When You Need It

Although it seems cost-effective to only turn on your heating system when you are home, it often drives up your energy bills. Letting your system maintain a consistent temperature is more efficient than allowing your home to get too cold, forcing the system to work harder to reheat it.

Use a programmable or smart thermostat to:

  • Keep your home slightly cooler during work hours
  • Let it warm up before you arrive home
  • Reduce use at night without shutting the system off entirely

This approach protects your home and your wallet, especially during Alberta cold snaps.

Still Not Sure? Let McMullen’s Help You Decide

With decades of experience serving Central Alberta, McMullen’s can assess your home and recommend the best system for your space, budget, and lifestyle. Whether you need a furnace tune-up, a heat pump quote, or help exploring rebate options, we are here to help.

Call +1 (403) 342-1155 or contact us online to get started.

 

Service Areas

  • As far south as Olds/Bowden
  • North to Ponoka and west to Eckville
  • More or less 50 km East/West/North/South
  • Red Deer
  • Sylvan Lake
  • Blackfalds
  • Lacombe
  • Ponoka
  • Penhold
  • Innisfail
  • Olds

  • Sundre
  • Gull Lake
  • Bowden
  • Didsbury
  • Spruce View
  • Echville
  • Bently
  • Rimbey
  • Threehills
  • Alix
  • Stettler

Copyright © McMullen’s Refrigeration & Heating Ltd. All Rights Reserved. Privacy Policy