Heat Pump vs Dual Fuel vs Gas Furnace in BC: Which Fits Your Home?

If your furnace is getting old, you have three main choices in Coquitlam: a new gas furnace, an electric heat pump, or a dual fuel system that uses both. The right fit depends on your home, your ducts, your electrical panel and your budget. All facts here were checked on October 7, 2026.

How does each heating system work?

Gas furnace

A gas furnace burns natural gas to heat air, and a fan pushes that air through your ducts. Its efficiency is shown as AFUE: a 95% AFUE furnace turns about 95% of the gas energy into heat. A furnace only heats, so cooling needs a separate air conditioner.

Heat pump

A heat pump uses electricity to move heat. Natural Resources Canada explains that an air-source heat pump draws heat from outside air in winter and moves heat outside in summer, so one system heats and cools. Because it moves heat rather than making it, it can deliver more heat than the electricity it uses. BC Hydro describes heat pumps as "up to 300% efficient." This is the COP (coefficient of performance): a COP of 3 means 3 units of heat per unit of electricity. COP drops as the outdoor air gets colder.

A central (ducted) heat pump uses your existing ducts. A ductless mini-split uses wall-mounted indoor heads and suits homes without ducts.

Dual fuel (hybrid) system

A dual fuel system pairs a heat pump with a high-efficiency gas furnace. A connected thermostat switches between them at a set outdoor temperature, called the switchover point. FortisBC recommends a maximum switchover of 5 C in the Lower Mainland. Above that, the heat pump heats your home. Below it, the furnace takes over. FortisBC notes that because the furnace covers the coldest days, the heat pump does not need to be sized for the full heating load, which can reduce the need for duct or electrical upgrades.

Will a heat pump keep up in a Coquitlam winter?

Heating systems are sized to a "design temperature," the cold outdoor temperature a system should handle. The City of Coquitlam publishes its own building code climate values because its elevation varies so much:

Elevation	January 2.5% design temperature	January 1% design temperature
0 to 150 m	-9 C	-10 C
151 to 300 m	-10 C	-12 C
301 to 425 m	-11 C	-13 C

Homes higher up face colder design conditions. The City notes that above 250 m the building code climate zone also changes.

Natural Resources Canada says standard air-source heat pumps may need supplemental heat when it is between -10 C and -15 C outside. It says cold-climate heat pumps can operate when outdoor temperatures are as cold as -30 C. In plain terms, a cold-climate model is built to keep working through Coquitlam's design temperatures, but it runs less efficiently on the coldest days. All-electric installs often include electric backup heat; a dual fuel system uses the gas furnace as backup. Ask your contractor for a heat loss calculation and the heat pump's capacity at your design temperature.

Which is cheaper to run: heat pump, dual fuel or gas?

It depends on your rate plan, how much heat your home needs, and how efficient the heat pump is in cold weather. Here is the method, then a labelled example.

Current rates (checked October 7, 2026)

• BC Hydro tiered rate: 11.87 cents per kWh up to the Tier 1 threshold (about 1,350 kWh per two-month bill), then 14.08 cents per kWh. Basic charge 23.44 cents per day.
• BC Hydro flat rate: 12.70 cents per kWh for all use. Basic charge 25.00 cents per day. BC Hydro says the flat rate may suit homes with electric heating.
• FortisBC natural gas (Mainland, effective July 1, 2026): delivery $8.469 per GJ, storage and transport $2.472 per GJ, cost of gas $1.660 per GJ. Basic charge $0.4216 per day. The rate table we checked lists no separate carbon charge.

Taxes and fees are not included. FortisBC says commodity charges are reviewed every three months, so recheck the official pages before you compare.

The method

1. Gas cost per GJ used: add the per-GJ charges. $8.469 + $2.472 + $1.660 = $12.601 per GJ of gas.
2. Gas cost per GJ of heat: divide by furnace efficiency. For a 95% furnace: $12.601 / 0.95 = about $13.26 per GJ of heat.
3. Heat pump cost per GJ of heat: 1 GJ equals about 277.8 kWh. Divide 277.8 by the heat pump's COP, then multiply by your electricity price.
4. Compare. Then add the basic charges. If you keep any gas appliance, you still pay the FortisBC basic charge.

Example only (not a quote or a promise)

This example assumes a 95% AFUE gas furnace and two heat pump efficiencies: COP 3 (milder weather) and COP 2 (colder weather). These COP values are assumptions for illustration. Your real numbers will differ.

System and price	Cost per GJ of heat delivered
Gas furnace, 95% AFUE, FortisBC rates	about $13.26
Heat pump, COP 3, BC Hydro Tier 1 (11.87 cents)	about $10.99
Heat pump, COP 3, BC Hydro flat (12.70 cents)	about $11.76
Heat pump, COP 3, BC Hydro Tier 2 (14.08 cents)	about $13.04
Heat pump, COP 2, BC Hydro flat (12.70 cents)	about $17.64
Heat pump, COP 2, BC Hydro Tier 2 (14.08 cents)	about $19.56

What this shows: at these rates, gas and heat pump costs land close together. In mild weather a heat pump can cost a bit less per unit of heat. On cold days, when its COP drops, gas can cost less. That is the logic behind dual fuel. For your own estimate, total the GJ on last year's gas bills and multiply by your furnace's efficiency to get the heat your home needs.

FortisBC's own comparison for a typical older Lower Mainland home found that switching from a gas furnace to a central heat pump saved about 4% a year on energy costs. Moving from electric baseboards to a heat pump saved about 52%. Note that FortisBC is a gas and electric utility, and its estimates used 2023 rates that included the consumer carbon tax.

What do the systems cost to install?

Published ranges vary widely. Treat these as rough, dated estimates. Prices vary by home and contractor, so get at least two written quotes.

Upgrade	Reported range	Source and date
Gas furnace to new gas furnace	$4,000 to $7,000	FortisBC (page updated March 17, 2026; estimates made in 2023)
Gas furnace to central heat pump	$7,000 to $12,000	FortisBC (same page)
Electric baseboard to mini-split heat pump	$14,000 to $20,000	FortisBC (same page)
Ductless mini-split	$6,000 to $10,000	BC Hydro (March 7, 2022)
Cold-climate heat pump	$15,000 to $20,000	BC Hydro (March 7, 2022)
Ducted air-source heat pump, 1.5 to 5 tons	about $18,235 to $27,490	Green Building Canada, from buyer-reported BC quotes (updated July 3, 2025)

The sources disagree, especially for central heat pumps, and some figures are several years old. We found no dated official cost range for dual fuel, so get quotes for both heat-pump-only and dual fuel. Watch for extra costs: FortisBC notes a panel upgrade can cost up to $12,000 (average around $5,000), and older homes may need larger ducts.

Which system has lower emissions?

CleanBC says most emissions from buildings come from the natural gas used to heat them. Homes and commercial buildings made up 16% of BC's total emissions in 2023.

BC's electricity is mostly hydro. The Province's 2025 emission factor for the main (Integrated) grid is 22.8 tonnes CO2e per gigawatt-hour, which works out to about 23 grams per kWh. For natural gas, Environment and Climate Change Canada lists 1,966 grams of CO2 per cubic metre burned in BC. In simple terms, a heat pump on BC power has much lower emissions than a gas furnace. A dual fuel system falls in between, since it burns gas only below the switchover point.

Where can a heat pump go in Coquitlam?

Coquitlam regulates where outdoor units go to limit noise for neighbours. Under Section 514 of the Zoning Bylaw, in effect for building applications received on or after January 29, 2019, these rules apply to one-family, two-family, triplex, quadruplex and street-oriented village home uses:

• Heat pumps and other exterior heating and cooling equipment go in the front, rear or exterior side yard, and must sit an extra 1.0 metre beyond the required interior side lot line setback.
• Vents from central heating and cooling equipment, such as a high-efficiency furnace, must not vent into the interior side yard.

The City's placement guide also suggests placing units close to the house in the centre of the rear or front yard, away from hard surfaces that reflect sound and away from roof drip lines. It recommends quiet features such as a low decibel rating, variable-speed compressor and fans, and a night quiet mode.

Confirm the rules for your lot with the City before you sign.

What permits do I need?

Technical Safety BC says a home heat pump install needs an electrical permit and a licensed electrical contractor. If you are modifying or removing a gas furnace or boiler, you also need a gas permit. Gas work in BC must be done by a licensed gas contractor under a Technical Safety BC permit. Do not attempt gas work yourself.

Rebates

Rebate programs change often. See our guide to BC heat pump rebates in 2026 and confirm on the official program page before you buy.

Quick decision table

Your situation	Option to look at first	Why
Electric baseboards or electric furnace	Heat pump	Largest energy savings in FortisBC's comparison (about 52 to 53%)
Gas furnace, want cooling, panel near capacity or small ducts	Dual fuel	Smaller heat pump, gas covers cold days, fewer upgrades
Gas furnace, want lowest emissions	Cold-climate heat pump	BC grid power has low emissions
Gas furnace, tight budget, no cooling needed	High-efficiency gas furnace	Lowest reported upfront cost range
Home at higher elevation (above 250 m)	Cold-climate heat pump or dual fuel	Colder design temperatures
Boiler with no ducts	Ductless heat pump or new boiler	Central systems need ducts

This is general information. A qualified HVAC contractor or energy advisor can assess your home.

FAQ

Is a heat pump cheaper to run than a gas furnace in BC?

Sometimes. In our example, a heat pump at COP 3 cost slightly less per unit of heat than a 95% gas furnace, but at COP 2 it cost more.

What temperature does a dual fuel system switch to gas?

FortisBC recommends a maximum switchover of 5 C in the Lower Mainland. Your contractor sets this on the connected thermostat.

Do I need to upgrade my electrical panel for a heat pump?

Possibly. FortisBC notes that many older homes in its electric service area have 100-amp service and may need 200-amp service, and older Coquitlam homes can face the same question. Dual fuel can reduce this need because the heat pump can be smaller.

Can I put my heat pump beside my house in the side yard?

For most Coquitlam homes, not in the interior side yard. It must sit at least 1.0 metre beyond the required interior side setback. Check with the City for your lot.

Before you hire

• Get at least two written quotes, ideally for more than one system type.
• Ask for a room-by-room heat loss calculation and the heat pump's capacity at your design temperature.
• Ask whether your ducts and electrical panel need upgrades, and get those costs in writing.
• Confirm the contractor holds the right Technical Safety BC licences for gas, electrical and refrigeration work, and will pull the permits.
• Ask where the outdoor unit will go and confirm it meets Coquitlam's Section 514 siting rules.
• Check current rebate rules in our rebate guide before you sign.
• Learn how to check a gas fitter's licence.

Compare local contractors on our ranked Coquitlam HVAC listings and Coquitlam gas fitting listings, and see how we rank.