# Ontario Furnace Replacement 2026: 90%+ AFUE Requirement, Heat Pumps vs Gas and Costs **URL:** \ **Category:** Ontario\ **Created:** [April 26, 2026, 7:18pm UTC](https://home.renovation.reviews/t/ontario-furnace-replacement-2026-90-afue-requirement-heat-pumps-vs-gas-and-costs/46917 "2026-04-26T19:18:26Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![system](https://home.renovation.reviews/user_avatar/home.renovation.reviews/system/32/77_2.png) [@system](https://home.renovation.reviews/u/system)\ **Post date:** [April 26, 2026, 7:18pm UTC](https://home.renovation.reviews/t/ontario-furnace-replacement-2026-90-afue-requirement-heat-pumps-vs-gas-and-costs/46917/1 "2026-04-26T19:18:26Z")
Furnace replacement in Ontario has gotten more complex with energy efficiency regulations and the growing heat pump market. Key facts for 2026: **AFUE minimum in Ontario:** 90% AFUE required for all new/replacement furnace installations (Canada Energy Efficiency Regulations, effective 2019). Installing an 80% furnace is no longer code-compliant. **Gas furnace vs heat pump cost comparison (GTA 2026):** | System | Installed Cost | Notes | | --- | --- | --- | | High-efficiency gas furnace (96% AFUE) | $4,500-$7,500 | Includes PVC venting, thermostat | | Ducted cold-climate heat pump (replace furnace + AC) | $12,000-$22,000 | Dual function: heat + cool | | Dual-fuel hybrid (heat pump + gas backup below -15C) | $16,000-$28,000 | Optimal for Ontario climate | **Venting change:** Condensing furnaces (90%+) require PVC plastic flue (horizontal through wall) – can’t use existing metal chimney. Decommission or reline old chimney: $500-$1,500. **Incentives for heat pumps:** - Canada Greener Homes Grant: up to $5,000 - Enbridge Gas rebate: up to $2,500 for switching from gas - Canada Oil to Heat Pump Affordability: up to $10,000 (oil-heat homes) _HVAC contractor referrals at [home.renovation.reviews](https://home.renovation.reviews)_