Project cost and performance inputs
Making sense of Quebec’s layered heat pump rebates
Quebecers eyeing cold-climate heat pumps face a confusing maze of incentives. Ottawa’s Canada Greener Homes grant promises up to $5,000 plus reimbursement for the mandatory energy audit. Hydro-Québec’s Efficient Heat Pump program stacks another $50 per thousand BTU of low-temperature capacity, capped at $5,000. Cities from Montreal to Gatineau sprinkle in their own grants to accelerate building decarbonization. Each program follows distinct eligibility rules, and homeowners worry about double dipping or leaving money on the table. This calculator pulls the main programs together, letting households, contractors, and energy advisors see how equipment sizing, installation quotes, and local top-ups blend into a final net price.
The first set of inputs covers project costs. Equipment and installation often run north of $17,000 for a high-performing unit like a Mitsubishi Zuba or Daikin Aurora sized for Quebec’s frigid winters. The energy audit, while reimbursable, requires cash outlay and scheduling. Heating capacity at -8°C is crucial because Hydro-Québec ties its incentive to the appliance’s low-temperature output; installers typically submit manufacturer data showing capacity per kilowatt. Entering the federal cap keeps the Greener Homes contribution honest—some households have already claimed a portion for insulation upgrades, leaving less headroom for the heat pump.
The municipal fields recognize that local programs vary widely. Montreal’s Subvention Thermopompe, for example, offers 15 percent of eligible costs up to $2,000 when replacing oil heating. Longueuil and Laval have similar but smaller grants. By expressing the municipal share as a percentage with a cap, the calculator accommodates new programs without rewriting the code. As municipal budgets change annually, homeowners can simply update the percent and maximum once they confirm the current offer with their borough.
Beyond incentives, the tool examines operating savings. Annual heating load, expressed in kilowatt-hours of heat delivered, anchors the energy model. The current system efficiency allows comparisons between aging oil furnaces (often 75–85 percent) and newer condensing natural gas units (93 percent). Fuel price and energy density convert consumption into dollars. For oil, 10.5 kWh per liter is typical; propane sits closer to 6.9, and users can adjust accordingly. The heat pump’s seasonal COP reflects cold-climate performance averaged over Quebec’s long winter. Hydro-Québec’s residential electricity rate remains a bargain compared with fossil fuels, especially under the dual-energy tariff that drops prices when temperatures exceed -12°C, so the calculator defaults to $0.097 per kilowatt-hour.
The math adds clarity. Total eligible cost equals equipment plus installation, the basis for federal, provincial, and municipal incentives. The calculator caps the Greener Homes contribution at the remaining federal headroom and limits Hydro-Québec’s share to both its rate-per-kilowatt and the maximum grant. Municipal support scales with eligible cost until hitting its cap. The combined incentive total cannot exceed the sum of eligible expenses plus the audit cost, keeping the stack compliant with funding rules. The net cost therefore becomes:
Where E is equipment cost, I installation, A audit, F the federal grant, P the provincial incentive, and M municipal support. This prevents unrealistic negative net costs while honoring the policy intent that households retain skin in the game.
Next comes fuel switching economics. Current energy input equals heating load divided by furnace efficiency. Dividing that by the fuel’s energy density yields liters or cubic meters consumed annually. Multiplying by price produces the baseline fuel bill. Heat pumps require electricity instead of combustion, so the calculator divides heating load by the COP to determine kilowatt-hours drawn from Hydro-Québec. Multiplying by the blended rate gives the future bill. The difference between fuel spend and electricity spend represents annual savings. For oil-to-heat-pump conversions, savings often exceed $2,000 per year even before including maintenance reductions.
The example embedded in the calculator shows a homeowner spending $1.55 per liter on heating oil with an 82 percent efficient furnace. Their annual heating demand of 28,000 kWh consumes roughly 3,248 liters, costing more than $5,000. Switching to a COP 3.1 heat pump cuts electricity use to 9,032 kWh, costing about $876 at Hydro-Québec rates. Stacked incentives from Ottawa ($5,000), Hydro-Québec ($3,000), and Montreal ($2,000) reduce the net project cost to $7,100 after audit reimbursement. The annual savings of $4,168 lead to a payback of 1.7 years—compelling evidence for a homeowner skeptical about upfront expenses.
To communicate these dynamics clearly, the calculator includes a table comparing life-before and life-after electrification.
| Metric | Oil furnace | Cold-climate heat pump |
|---|---|---|
| Annual energy consumption | 3,248 liters | 9,032 kWh |
| Annual utility cost | $5,034 | $876 |
| Annual emissions | 8,713 kg CO₂e | 9 kg CO₂e |
| Eligible incentives | $10,000 combined | applied to project |
Even though Quebec’s grid is nearly carbon free, the table shows dramatic emissions reductions because the oil baseline is so carbon intensive. For homeowners motivated by climate action, the avoided 8.7 tonnes of CO₂e each year equate to removing almost two gasoline cars from the road.
The narrative that follows helps contractors explain each program’s requirements. The Canada Greener Homes grant demands both pre- and post-retrofit EnerGuide audits conducted by licensed energy advisors. Hydro-Québec requires proof that the system meets low-temperature performance thresholds, often verified with AHRI certificates. Municipal programs typically insist that the existing system be oil or propane and that it is removed or decommissioned. The calculator encourages users to keep invoices and capacity ratings handy because missing paperwork is the top reason rebate claims stall.
Limitations also appear. Incentive budgets fluctuate; the federal program temporarily paused new applications in 2023, and municipal grants may run out mid-year. The calculator assumes the homeowner receives the full eligible amount, yet some programs prorate based on previous upgrades or household income. It also models average seasonal performance. A poorly designed ductless installation in a drafty duplex might deliver a lower COP, eroding savings. Furthermore, the simple payback ignores financing costs. Many Quebecers leverage Desjardins eco loans or Hydro-Québec’s dual-energy financing, which may add interest expenses. Users should revisit the tool after receiving official rebate pre-approvals and once installers provide heat loss calculations to ensure the capacity input reflects actual design conditions.
Despite these caveats, the Quebec Heat Pump Rebate Stacking Calculator equips families with a transparent planning worksheet. It demystifies overlapping programs, quantifies the environmental upside, and highlights how quickly electrification pays for itself in a province blessed with clean hydropower. Whether you are a homeowner plotting your next renovation, a contractor crafting quotes, or a municipal sustainability officer benchmarking program uptake, this calculator provides a grounded, data-rich foundation for decision making.