What drives the price
- Loop type. Horizontal trenches are cheapest where there is open land. Vertical boreholes cost more but fit small lots. Pond and lake loops are the cheapest when the water is deep enough.
- Heat load. A tight, well-insulated house needs a smaller system and a shorter loop.
- Distribution. Existing ductwork may need upgrades; new homes can use in-floor heating.
- Site conditions. Rock, access for drilling rigs and landscaping restoration all matter.
Rebates: the Home Renovation Savings Program
Ontario's Home Renovation Savings Program lists ground-source heat pumps at up to $12,000. Published sources disagree on what homes heated with natural gas receive, so check the program's current terms for your heating type. Two conditions come up in every source: the installer must be on the program's contractor list, and the heat pump must be on Natural Resources Canada's qualified products list. Confirm eligibility before you sign.
Does geothermal pay back in Ontario?
A geothermal heat pump moves heat rather than burning fuel, delivering several units of heat for each unit of electricity. It pays back fastest when it replaces oil, propane or electric baseboard, on new custom homes where the loop is installed before landscaping, and on rural lots with room for a horizontal loop. For an existing home already on natural gas, a cold-climate air-source heat pump often gives better value for the money.
Geothermal vs. cold-climate air-source heat pump
| Geothermal | Cold-climate air-source | |
|---|---|---|
| Installed cost | Higher ($22k to $45k typical) | Much lower |
| Efficiency in deep cold | Steady, ground temperature is constant | Drops in extreme cold; good models still work well |
| Life span | Ground loop rated for decades | Outdoor unit typically 15 to 20 years |
| Best fit | New builds, rural lots, oil or propane homes | Most existing homes |
How a geothermal project runs
- Heat-loss calculation for the house
- Loop design and site plan, before landscaping
- Drilling or trenching by a specialist partner
- Heat pump and distribution installed and commissioned
- Rebate paperwork, if eligible
NEUE plans and coordinates geothermal with specialist drilling and installation partners. See geothermal heating and cooling.
Sources
- Builders Ontario: Cost of geothermal heating in Ontario (2026)
- Plumbing and HVAC: Home Renovation Savings contractor list
Last updated October 2026 by NEUE. Market figures change; your project gets its own fixed price after a site visit.
Questions, answered
Typically $22,000 to $45,000 installed before rebates in 2026, depending mostly on the loop type and the size of the house.
Up to $12,000 for ground-source heat pumps under the Home Renovation Savings Program, depending on the home's current heating. The installer must be on the program's contractor list.
Usually yes for new custom homes and homes heating with oil, propane or electric baseboard. For homes on natural gas, a cold-climate air-source heat pump is often better value.