Guides · Switching
Switching From Oil to a Heat Pump: The Full Switch-Over, Explained
The short version: you don't just add a heat pump. You replace the whole heating system — and that's exactly why it works.
What does "switching from oil" actually involve?
A full switch-over has three parts: a cold-climate heat pump outside, a new furnace or air handler inside that moves the heat through your existing ducts, and a backup heat source for the coldest nights. The oil furnace and (usually) the tank come out. Your ducts stay. The result is one system that heats in winter, cools in summer, and never needs another oil delivery.
Why not just bolt a heat pump onto my oil furnace?
Because you keep every problem you were trying to leave. The oil furnace still needs its tank filled, its burner serviced, and its insurance questions answered — and when a 20-year-old furnace dies mid-January, you pay emergency prices to replace the very equipment the heat pump was supposed to retire. A heat pump paired with a furnace at the end of its life is the worst of both: the full cost of the heat pump, plus the full cost of the old system. The savings are in the full switch — one modern system, one fuel bill gone entirely.
What heats my home on the coldest nights?
Your new furnace or electric backup, automatically. The heat pump carries the home through most of the winter; when temperatures drop past the point where it's the cheapest option, the backup takes over — a high-efficiency propane or natural gas furnace, or electric elements in the air handler. You don't switch anything by hand. Read the full breakdown on the electric vs propane backup page.
What happens to the oil tank?
It's drained, the remaining oil is dealt with, and the tank is removed — a separate page covers the tank removal process in detail, including why insurers push hard on older tanks.
How much does switching save, honestly?
An oil home spending $4,000–$6,000 a year on fuel typically heats for roughly 45–55% of that after a full switch — call it $1,800–$3,300 a year back, every year, before the rebate. Against that, the switch costs a typical $12,500–$19,500 installed, minus up to $7,500 in Ontario rebates and $2,000–$10,000 federal. Your exact numbers depend on your home — that's what the calculator is for.
Switching from oil — common questions
Can I keep my oil furnace as a backup?
Technically you can pair a heat pump with an existing furnace, but if the furnace is old, you keep the tank, the deliveries, the service costs and the insurance pressure — and you'll still replace that furnace soon, at full price. The full switch is where the rebate math and the fuel savings actually land.
Do my ducts need to be replaced?
Usually not. Most ducted oil homes switch using their existing ductwork. The in-home visit confirms duct sizing and condition before anything is quoted in writing.
Does a heat pump also cool the house?
Yes — a heat pump is an air conditioner that runs in both directions. For many rural homes it's the first real air conditioning they've had.
How long does the switch take?
The installation itself is typically one to two days. The step that can't be rushed is before it: rebate pre-approval must be filed before the install, or the rebate doesn't exist.
What's your switch worth?
Oil homes get the top Ontario rate — $1,250 per ton — plus the new federal rebate. See your number in about a minute.
See your rebate AND your monthly number