Choose the right heating system for your home
Home and water heating account for the largest portion of your home energy bill. Understand the costs and make an informed decision when you replace your old space and water heating equipment. Some heating systems can be more costly upfront but can payback the investment quickly with lower operating costs. Pick the right heating system and heat your home for less.
Energy efficient heating systems use less energy and are therefore less harmful for the environment. In addition to choosing an energy efficient system to lessen negative environmental impacts, Manitobans can reduce their electricity use, which allows Manitoba Hydro to export surplus hydro electricity to provinces and states that would otherwise burn fossil fuels (such as coal). This helps reduce global greenhouse gas emissions.
The cost to heat your home can vary depending on:
- the size of your home;
- the type of heating system you use;
- how efficient your heating system is;
- current energy rates;
- how much insulation you have;
- the number of people in your household;
- a variety of other factors such as weather and lifestyle.
Some types of home heating systems are more expensive to buy but cost less to run.
If you are thinking of upgrading or replacing your home heating system, your choice of heating system may depend on the type of system that you already have as well as which energy options are available in your area.
- Annual space heating costs comparison (PDF, 470 KB)
Calculate heating costs
This calculator will help you make an informed decision about replacing or upgrading your space or water heating system. You may use it to:
- Select and compare your home heating system options.
- Select and compare your water heater options.
- Compare the annual operating costs as well as the total lifetime costs of your options.
- Save, print, or share the report so that you may discuss the information with your contractors.
- The total lifetime cost is the estimated purchase price plus the operating cost over the life of the system;
- The estimated life is 25 years for a space heating system and 10 years for a water heating system.
Disclaimer
The calculator provides general estimates on what energy costs may be expected from the heating systems being considered. The calculator does not consider annual maintenance costs. More complex heating systems may come with higher maintenance costs. The total lifetime cost of a heating system is the cost to buy and install the heating system plus the annual energy cost over the life of the heating system. All such estimates are general in nature and the estimates are based on information received from the user of the calculator and Manitoba Hydro is relying solely on the information and representations being made by the user and that the estimates are based on other external factors such as weather, use of equipment, systems and type and use of eligible upgrades. The natural gas rate used in the calculator is based on a rolling average of the current quarterly natural gas rate and the three previous quarterly rates that were in effect. The propane and fuel oil rates used in the calculator are based on a rolling average of the current point-in-time price (at the time of the current quarterly natural gas rate) and the three previous quarterly rates that were in effect. As electricity rates typically change on an annual basis the current electricity rate is used. Depending on your supplier, propane and fuel oil prices can fluctuate on a daily basis. The annual heating costs presented by the calculator exclude the cost of converting to a different heating system, which may be significant. Manitoba Hydro recommends that you speak with a licensed heating contractor to get quotations on a new space or water heating system to better understand the total cost of switching heating systems. Manitoba Hydro does not make any guarantees, representations or warranties respecting any estimates provided by or on behalf of Manitoba Hydro, either express or implied, arising by law or otherwise, as to any matter including without limitation merchantability, effectiveness, efficiency, completeness, currency, accuracy, correctness, fitness for a particular purpose. The user of the calculator shall be solely responsible for the entire risk of the performance and results of the estimate and any and all claims or liabilities that might arise as a result of the use of the estimate.
Design heat loss calculation for geothermal heating
This calculates how much heat a particular home requires to maintain a 22°C indoor temperature on the coldest day of the year. A contractor or designer should perform this calculation based on the CSA F280-M Determining the required capacity of residential space heating and cooling appliances standard.
- According to CSA standards, a geothermal heat pump system must be sized to handle 70 to 105% of the design heat loss of a home.
- Systems sized to less than 100% require an electric heater to make up the difference during the few coldest days of the year.
- A system sized to 70% costs less to purchase but has slightly higher annual energy costs, due to the auxiliary heater.
- One benefit of a system sized to 70% is that it more closely matches your home’s cooling load, providing more comfortable and efficient air conditioning during the summer.
Cold climate air source heat pumps
Cold climate air source heat pumps are energy efficient and can reduce your carbon footprint if they are replacing a fossil fuel source heating system. They transfer heat contained in the outside air to heat your home.
Cold climate air source heat pumps are slightly more efficient and can operate in colder temperatures than conventional air source heat pumps. Conventional heat pumps typically lose significant heating capacity at colder temperatures. It is generally not recommended to operate them when temperatures drop below −10°C, while cold climate heat pumps can still provide heat to −25°C or −30°C, depending on the manufacturer’s specifications.
There are 2 main types of cold climate air source heat pumps.
Centrally ducted
A centrally ducted heat pump looks like a central air conditioner. It has an outdoor unit and a coil located inside the home’s ductwork.
During summer the heat pump operates like a central air conditioner. The circulating fan moves air over the indoor coil. Refrigerant in the coil picks up heat from the indoor air, and refrigerant is pumped to the outdoor coil (condenser unit). The outdoor unit rejects any heat from the home into the outside air while cooling down the inside of the home.
During winter the heat pump reverses the direction of refrigerant flow, and the outdoor unit picks up heat from the outdoor air and transfers it to the indoor coil in the ductwork. Air that passes over the coil picks up the heat and distributes it inside of the home.
Mini-split (ductless)
A mini-split heat pump operates like the centrally ducted heat pump but it does not use ductwork. Most mini-split or ductless systems have an outdoor unit and 1 or more indoor units (heads). The indoor units have a built-in fan that moves air over the coil to pick up or release heat from the coil.
A system with multiple-indoor units is usually required to heat and cool an entire home. Mini-split heat pump systems are best suited to homes without ductwork, such as homes with a hot water boiler, steam boiler, or electric baseboard heaters. Mini-split systems are also ideal in homes with an open concept floor plan, as these homes require less indoor units.
Maintenance
We recommend:
- inspecting the air filter every 3 months to see if it requires replacement;
- routine checks to ensure supply and return air vents are clear;
- routine inspection and cleaning of outdoor coil to ensure it is free of leaves, seeds, dust, and lint;
- an annual system check by a qualified service professional.
A licensed refrigeration mechanic can inform you about additional operation and maintenance details of your system.
Operating temperatures
Air source heat pumps have a minimum outdoor operating temperature and their heat production is significantly reduced as the outside air temperature drops. Air source heat pumps normally require an auxiliary heating source to maintain indoor heating temperatures in the coldest weather. The auxiliary heat source for cold climate units are typically electric coils, but some units can work with gas furnaces or boilers.
Most air source systems shut off at 1 of 3 temperatures, which can be set by your contractor during installation:
- Thermal balance point
At this temperature the heat pump does not have enough capacity to heat the home on its own. - Economic balance point
The temperature when 1 fuel becomes more economic than the other. At colder temperatures it may be more cost effective to use supplemental fuel (such as natural gas) than electricity. - Low temperature cut-off
The heat pump can safely operate to this minimum operating temperature, or the efficiency is equal to or less than the electric auxiliary heating system.
Controls
We recommend having a thermostat control that operates both the air source heat pump and the auxiliary heating system. Installing 1 control will help prevent the heat pump and alternate heating system from competing with each other. Using separate controls could also allow the auxiliary heating system to operate while heat pump is cooling.
Benefits
- Energy efficient
Cold climate air source heat pumps are higher in efficiency when compared to other systems such as electric furnaces, boilers, and baseboard heaters. - Environmentally friendly
Air source heat pumps move heat from the outdoor air and add it to the heat generated by the electrically-driven compressor to heat your home. This reduces your home’s energy use, greenhouse gas emissions, and harmful effects on the environment. - Versatility
Air source heat pumps heat or cool as required. Homes with a cold climate air source heat pump don’t need a separate air conditioning system.
Is it right for my home?
Keep these factors in mind when considering an air source cold climate heat pump for your home.
Cost and savings
A cold climate air source heat pump can reduce your annual heating costs by 33% when compared to an electric heating system. Savings of 44 to 70% can be achieved if switching from propane or fuel oil furnaces or boilers (depending on the seasonal efficiency of those systems). However, costs will generally be higher than natural gas heating systems. Read our annual space heating cost comparison charts (PDF, 369 KB).
The cost of installing an air source heat pump depends on the type of system, existing heating equipment and ductwork in your home. Some modifications to the ductwork or electrical services may be required to support your new heat pump installation. An air source heat pump system is more expensive to install than a conventional heating and air conditioning system, but your annual heating costs will be lower than electric, propane or fuel oil heating. Financing is available to help with the cost of installation through the Home Energy Efficiency Loan.
Local climate
When buying a heat pump, the Heating Seasonal Performance Factor (HSPF) should help you compare 1 unit’s efficiency to another during mild winter weather. The higher the HSPF number, the better the efficiency. Note: The manufacturer’s HSPF is usually limited to a specific region with much milder winter temperatures and does not represent its performance in Manitoba weather.
When temperatures drop below −25°C, most cold climate air source heat pumps are not more efficient than electric heating.
Installation requirements
The location of the outdoor unit depends on the air flow, aesthetic, and noise considerations, as well as snow blockage. If the outdoor unit is not on a wall-mount, the unit should be placed in an open area on a platform to allow for defrost meltwater to drain and minimize snow drift coverage. Avoid placing the unit close to walkways or other areas as melted water might create a slip or fall hazard. Follow the manufacturer’s installation recommendations.
See Northeast Energy Efficiency Partnership’s Guide to Installing Air Source Heat Pumps in Cold Climates.
Hiring a contractor
Your unit must be installed by a refrigeration mechanic licensed in Manitoba. Your installer should perform a heat loss calculation to ensure the system is the correct size for your home. Follow our tips for hiring a contractor to ensure you feel confident in finding a supplier that best fits your project’s needs.
Learn about the Canada Greener Homes Grant
A new or replacement cold climate air source heat pump system may qualify for Natural Resources Canada Greener Homes Grant.
For more information about cold climate air source heat pumps, email us.
Heating systems
Home heating systems consist of a heating unit (furnace or boiler), a distribution system (ducts and registers or pipes and radiators), and thermostats that control the system. In some cases space heaters are used as a main source or for supplemental heating and do not have distribution systems, such as baseboard heaters.
If you are thinking of upgrading or replacing your home heating system, your choice of heating system may be limited to the type of system that you currently have as well as your energy options (whether or not you have access to natural gas in your area).
Some heating systems can be more costly upfront but can payback the investment quickly with lower operating costs. For example, an electric space heating system may cost less up front, but a natural gas heating system will pay for itself and save an average of $12,000 over its 25-year life.
Energy efficient heating systems use less energy and are therefore less harmful for the environment. In addition to choosing an energy efficient system to lessen negative environmental impacts, Manitobans can reduce their electricity use, which allows Manitoba Hydro to export surplus hydro electricity to provinces and states that would otherwise burn fossil fuels (such as coal). This helps reduce global greenhouse gas emissions.
Types of home heating systems
Home heating accounts for more than 60% of your energy bill, the largest portion. Understand the costs that are involved and make an informed decision when you replace your old heating equipment.
There are many types of home heating systems. The main sources in Manitoba are:
The type of energy used by your heating system affects how much it costs to heat your home. There is a basic monthly charge to have natural gas service to your home, which is included in the cost to heat your home with natural gas. Based on today’s energy rates, it costs approximately $550 less to heat an average Manitoba home using natural gas than electricity.
Natural gas
Natural gas heating systems are rated by their Annual Fuel Utilization Efficiency (AFUE), which describes how efficient a heating system is over the entire heating season. For example, a high efficient furnace with an AFUE of 92% will provide 92% of the natural gas energy to the home over the heating season.
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High efficiency furnaces
A high efficiency natural gas furnace uses a secondary heat exchanger to extract energy from water vapour, which is a bi-product of burning natural gas. High efficiency natural gas furnaces have AFUE ratings of 92% and above. It is estimated that you can reduce your home’s annual heating bill by up to 35% compared to using a conventional furnace.High efficiency natural gas furnaces cannot use a conventional metal chimney to vent flue gases from the home. Instead, they use an approved plastic venting system to vent the lower temperature flue gases outside through the side wall or roof.
If you switch to a high efficiency natural gas furnace, you may be able to leave your existing natural gas water heater on your metal chimney as long as it vents properly and the chimney meets provincial requirements. Your contractor is responsible for informing you if the chimney meets the requirements. If it doesn’t, you may need to modify your venting system. Another option is to install a natural gas water heater that vents out the side wall, or an electric water heater. Talk to your heating contractor about all of your options.
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Mid efficiency furnaces
Mid efficiency natural gas furnaces use an electronic ignition system that eliminates the need for a standing pilot light, and an induced draft fan that replaces the conventional furnace’s natural draft venting system. Mid efficiency furnaces have an AFUE rating between 78 and 84%, and have not been available for sale since 2009. -
Conventional furnaces
A conventional natural gas furnace has a standing pilot light that operates continuously, and a natural draft venting system which allows heated air to exit out the chimney, even when the furnace is off. These furnaces have an estimated AFUE rating of 60%, and have not been available for sale since 1995. -
High efficiency boilers
A high efficiency natural gas boiler uses a secondary heat exchanger to extract energy from water vapour, which is a bi-product of burning natural gas. High efficiency natural gas boilers cannot use a conventional metal chimney to vent flue gases from the home. Instead, they use an approved plastic venting system to vent the lower temperature flue gases outside through the side wall or roof. The AFUE rating for a high efficiency boiler is approximately 90%. It is estimated that you can reduce your home’s annual heating bill by up to 35% by using a high efficiency boiler rather than a conventional model. -
Mid efficiency boilers
Mid efficiency boilers have an electronic ignition and use an induced draft fan or vent damper to prevent heated air from escaping up and out of the chimney when the boiler is off. These types of boilers have an estimated AFUE rating of 80 to 85%. -
Conventional boilers
Conventional boilers have a standing pilot light that is always on and a natural draft venting system that allows heated house air to escape up and out through the chimney. The estimated AFUE rating for these types of boilers is 60%. These units have not been available for sale since 1999.
Electric
Electric furnaces or baseboard heaters use electric resistance heating elements to generate heat. As long as the electric heating system is located within the home, almost 100% of the electricity consumed by the heating system contributes to heating the house.
If you’re considering an electric furnace or baseboard heaters, you may need to upgrade your electrical service. Depending on the capacity of the electrical appliances and equipment currently installed in your home, and the size of your home, the Manitoba Electrical Code will allow a maximum of 8 to 10 kilowatts of electric heating load on a standard 100-amp service. Most homes will need more than this, so you would have to increase the size of your electrical service. This may involve changing your electrical panel or installing a new 200-amp service. A licensed electrician can tell you if any of these changes are needed.
Geothermal
Geothermal systems are an energy efficient alternative to electric furnaces. They use the earth’s renewable energy to heat or cool your home. Geothermal technology can lower annual heating costs by up to 70%.
Cold climate air source heat pumps
Cold climate air source heat pumps are energy efficient and can reduce your carbon footprint if they are replacing a fossil fuel source heating system. They transfer heat contained in the outside air to heat your home. A cold climate air source heat pump can reduce your annual heating costs by 33% when compared to an electric heating system. Savings of 44 to 70% can be achieved if switching from propane or fuel oil furnaces or boilers (depending on the seasonal efficiency of those systems).
Propane or oil
Propane and oil systems have historically been more expensive to heat with than natural gas and electric systems. Fuel oil and propane need to be delivered to your home and stored in an external tank. They are usually used in areas where natural gas is unavailable.
Wood
Wood heating seasonal efficiencies can range between 45 and 80%, however the actual efficiency of the system can vary depending on the wood fuel that is being consumed. Moisture content in the wood will have the largest impact on the efficiency of the wood burning heating system. A wood heating system that burns wood that has low moisture content will operate more efficiently than the same heating system burning wood that has high moisture content.
Wood burning heating systems energy source typically comes in 2 forms, solid wood pieces such as logs and wood pellets. Wood pellets are made from wood waste materials using heat and pressure. Wood pellets typically have lower moisture content than solid wood. Both solid wood and wood pellets come with their own advantages and disadvantages and the decision to use one form of wood fuel over the other is really dependent on the specific homeowner’s needs and circumstances.
There are 2 main types of wood-heating systems.
- Central systems (furnaces and boilers)
A central heating system uses a network of ducts and water pipes to distribute heat to the entire house. - Space heaters (stoves and fireplaces)
A space heater is defined as an appliance intended to heat a general area and is more commonly sold as a supplementary heating system.
Certain renovations can change the way air leaks into and out of your home, and may have an impact on your home’s humidity levels.
Installation costs
The costs of installing a new heating system may vary. Factors include whether you are replacing an existing system with the same kind, installing a new type of heating system, or whether the heating system is being installed in a new home or an existing home.
In general, the costs to install a new heating system could include:
- bringing natural gas to your home;
- upgrading to a 200-amp electrical service and running electrical wiring to serve an electric furnace or baseboard heaters;
- storage tanks needed for oil or propane heating;
- heating equipment (furnace, boiler, baseboard heaters, heat pump, etc.);
- changes to your chimney;
- installing a ventilation system (exhaust fans or heat recovery ventilator) to control humidity and air quality;
- ducting and registers, or piping and convectors to distribute heat throughout your home;
- thermostats, dehumidistats and controls;
- trenching or drilling for geothermal systems;
- labour for installing any of the above.
Before you install a new heating system, compare price quotes from at least 3 different qualified contractors.