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The furnace market in Ontario

Ontario is Canada's largest furnace market by volume. Most homes heat with natural gas, Enbridge Gas prices change every quarter through the Ontario Energy Board, and provincial rebates in 2026 centre on heat pumps.

Written by Ali Sedighi, MBALast updated:

Ontario has more gas-heated homes than any other province, which makes it the largest furnace market in the country by sheer numbers. It also has the most frequent price news: Enbridge Gas rates are reset every quarter. For furnace companies, that combination rewards those who keep their content current and punishes those who do not.

Market and buyers

The direct answer: most Ontario homes heat with gas, and most furnace work is replacement in existing houses.

Statistics Canada's Table 38-10-0286-01 puts natural gas at 58% of Ontario households for primary heating in 2023, electricity at 18% and propane at 4%. The biggest markets are Toronto, Ottawa, Mississauga, Brampton, Hamilton, London, Markham and Vaughan, each with its own mix of older housing and newer subdivisions.

Buyers include:

  • GTA and Ottawa homeowners replacing furnaces in houses built from the 1970s to the 2000s
  • rural and cottage-country homeowners on propane
  • landlords with multiple properties who replace on failure
  • homeowners comparing a new furnace with a heat pump under provincial rebates

Climate and seasonality

Southern Ontario's winters are cold, moderated near the Great Lakes, while Northern Ontario has longer and colder heating seasons. Demand in the south follows cold snaps; in the north, it is steadier and more urgent. Quarterly gas price changes add another rhythm: each OEB decision gives homeowners a reason to think about their heating costs.

Regulators to know

We link these for reference only, not compliance advice.

Rates and programs as of October 2026

Gas prices. The Ontario Energy Board approved new interim Enbridge Gas prices effective July 1, 2026. Its backgrounder shows typical annual bill increases from $7.50 to $41.24 by rate zone, after a November-to-March period 10% colder than normal. Separately, the province asked the OEB in August 2026 to recommend criteria for a possible third gas expansion round, covered in our gas expansion brief.

Rebates. The Home Renovation Savings Program, run by Save on Energy and Enbridge Gas with provincial support, lists rebates for single upgrades such as cold-climate air source heat pumps (up to $7,500) and ground source systems (up to $12,000), and for bundled upgrades after a home energy assessment. Confirm current terms with the administrators.

As of October 2026, Ottawa and Ontario had not signed a Greener Homes Affordability agreement.

A note for multi-zone Ontario companies

Companies that serve both the GTA and smaller cities often straddle more than one Enbridge rate zone. Because zone impacts differed in July 2026, a single province-wide line about "rising gas bills" is less accurate than a short, zone-specific note on each city page.

Local business mix and how we would market here

Ontario's furnace market is crowded, with large GTA firms, franchise brands, rental-equipment companies and many smaller registered contractors. Homeowners face aggressive door-to-door and phone offers, so trust signals matter.

Our approach in Ontario:

  1. Date every price claim. Rates change four times a year. A page that says "as of July 1, 2026" with an OEB link is more credible than a vague "rising gas costs" line. Our rate-change content service handles this.
  2. Show your TSSA registration. In a market with many competing offers, a clear statement and a pointer to TSSA's public lookup builds trust.
  3. Present furnace and heat pump options together. Provincial rebates favour heat pumps; many homes still need or want a furnace. Honest comparisons win.
  4. Target by city and rate zone. EGD and Union zones saw different increases in July 2026.

Ontario clients can also look at our parent brands HVAC.Agency and HVAC.Digital. Proof from our HVAC work, including Roma Heating & Cooling, is on the results page. We are a marketing service, not a heating contractor.

Frequently asked questions

How many Ontario homes heat with natural gas?

Statistics Canada reports that 58% of Ontario households used natural gas for their primary heating system in 2023, with electricity at 18% and propane at 4%.

Who can install a gas furnace in Ontario?

TSSA says most fuels regulations require contractors to be registered, that registration authorizes them to install, operate and maintain regulated equipment, and that their technicians must be properly trained and certified. Its site links a tool to find registered fuels contractors.

How often do Enbridge Gas prices change?

Through the OEB's quarterly rate adjustment mechanism, prices can change on the first of January, April, July and October. The July 1, 2026 change raised typical annual bills by $7.50 to $41.24 depending on rate zone.

Sources

  1. Statistics Canada Table 38-10-0286-01 (reference year 2023) (2025-09-22)
  2. Ontario Energy Board backgrounder: Enbridge Gas QRAM, EB-2026-0156 (2026-06-23) (2026-06-23)
  3. Save on Energy: Home Renovation Savings Program (2026-10-22)