What is the Average Cost of Heating per Month in Canada?

Heating takes up the most electricity in Canadian homes, making up 80.8% of a household’s total electricity use, which means space and water heating is a major player in your electricity bill.

In this article, we will share the costs of heating in various types and places across Canada, plus some smart ways to reduce those costs.

Let’s start by looking at what you can expect to pay for heating and how you can save some cash this winter.

What Are the Different Types of Home Utilities?

Many people believe that appliances, like refrigerators, ovens, dishwashers, and washing machines, are the top electricity users in their homes. However, the real picture of home utility consumption looks quite different.

Here’s a breakdown of the different types of home utilities and how they stack up in terms of energy usage:

1. Space Heating (63.6%): Space heating consumes a whopping 63.6% of your total energy bill. Living in Canada means facing cold winters, so it’s no surprise that keeping our homes warm takes up a significant portion of energy.
2. Water Heating (17.2%): Coming in second is water heating, accounting for 17.2% of your energy use. This includes heating water for showers, doing dishes, and laundry. Considering the amount of hot water used daily, the energy usage adds up quickly.
3. Appliances (14.1%): Although many assume appliances consume the most energy, they actually rank third, at 14.1%. This category includes all those gadgets and appliances we use daily.
4. Lighting (3.5%): Lighting uses 3.5% of household energy. Switching to LED bulbs, which use at least 75% less energy and last 25 times longer than traditional incandescent bulbs, is a straightforward way to cut costs here. Also, simply turning off lights when not in use can save a lot.
5. Space Cooling (1.6%): Last on the list is space cooling, at 1.6%. In Canada, cooling costs are generally lower due to the milder summers compared to the intense winters.

The data is sourced from: Natural Resources Canada

Provinces With the Most Expensive Utility Bills

1. Northwest Territories: 41.0¢/kWh
2. Nunavut: 35.4¢/kWh
3. Nova Scotia: 18.3¢/kWh

Provinces With the Least Expensive Utility Bills

1. Quebec: 7.8¢/kWh
2. Manitoba: 10.2¢/kWh
3. British Columbia: 11.4¢/kWh

What are the Average Heating Costs per Month in Canada?

On average, Canadians spend about $135 monthly to keep their homes warm. Heating a home with natural gas costs about $160 during the colder months, while electric heating is a bit cheaper at $110 per month.

Unfortunately, heating costs across Canada are on the rise, making it increasingly difficult for many to manage monthly energy expenses. Over the past year, natural gas costs have jumped by 23.7%, and electricity costs have seen a 1.6% increase.

A study conducted in 2023 revealed that 14% of Canadian households had to keep their living spaces at temperatures that were either unsafe or uncomfortable for at least one month. This was primarily due to the high costs associated with heating and cooling their homes.

Moreover, about 15% of Canadians found themselves cutting back on essentials like food and medicine just to afford their heating bills.

Several factors contribute to the escalating heating costs in Canada, including:

• Increased demand for energy during particularly harsh winters
• Rising global energy prices
• Stricter environmental regulations
• Taxes

Heating Costs According to Fuels & Heating System Types

Gas Furnace

The daily cost to run a natural gas furnace in an average Canadian home falls between $5.50 and $8.00 during winter. This range can vary widely due to several factors:

• Furnace Size
• Efficiency
• Climate

Heat Pumps

Here’s the average heating cost of running different wattages of electric heat pumps, calculated based on the provided average cost of 0.192 CAD per kilowatt-hour

*When the heat pump runs 5 hours a day

Electric Furnace

Here’s the table for the costs of running an electric furnace at different wattages:

*When the heat pump runs 5 hours a day

Propane Furnaces

The annual running cost for homes using propane furnaces, alongside other propane appliances, typically ranges from $2,000 to $3,000.

How to Estimate Your Heating Costs?

To estimate your heating costs, you can use a simple formula that considers the size of your living space, the building’s age, the energy consumption, and the cost of your heating material.

Estimated Heating Costs = Living Space (in m²) x Age Factor (1.2 for newer buildings, 1.3 for older ones) x Final Energy Consumption (in kWh/m².a) x Cost of Heating Material (¢/kWh)

Let’s go through an example:

Imagine you live in an older building that’s 100 m². You know from your energy consumption records that the final energy consumption is 200 kWh/m².a, and the current cost of your heating material (say, natural gas) is 8 ¢/kWh.

Here’s how you’d calculate it:

100 m² (Living Space) x 1.3 (Age Factor for old building) x 200 kWh/m².a (Final Energy Consumption) x 0.08 CAD/kWh (Cost of Heating Material)

So, your estimated heating costs would be:

100 x 1.3 x 200 x 0.08 = 2,080 CAD per annum

To find the monthly cost, divide this number by 12:

2,080 CAD ÷ 12 months = 173.33 CAD per month

What If Heating Costs Are So High You Can’t Afford to Pay?

There’s no need to stress if the heating bills are piling up. Remember, disconnection of heat services is prohibited between November 15 and April 30, offering some security during the coldest periods.

Immediate assistance is available, such as the Ontario Energy Board’s programs for those struggling with heating costs.

For long-term solutions, consider improving your home’s energy efficiency. Simple steps like air sealing can make a significant difference without a hefty investment. Seek out air leaks and use window insulation film or door weather stripping.

Moreover, timing is essential; utilize natural light for warmth and draw curtains at night to retain it. You could potentially align your heating with the times when energy costs are lower.

Factors Affecting Heating Costs

Several factors can significantly influence your heating costs:

1. Insulation Quality: Proper insulation keeps heat in and cold out. An under-insulated home could lose heat quickly, requiring more energy to maintain a warm temperature.
2. Furnace Efficiency: Furnaces are rated by AFUE (Annual Fuel Utilization Efficiency). A furnace with an AFUE of 95% in a home is much more cost-effective than an older unit with an AFUE of 80%.
3. Thermostat Settings: Every degree lower in the winter can save about 2% on your heating bill. Setting your thermostat to 19°C instead of 21°C can reduce costs.
4. Local Climate: A home in the colder climate of the Yukon will use more heating than a home in milder British Columbia. The longer and harsher the winter, the higher the heating costs.
5. Home Size and Layout: Larger homes and those with open concepts, like many in Nova Scotia, need more heat. A smaller, compartmentalized home will generally have lower heating costs.
6. Type of Heating System: The choice of heating system will significantly affect your heating costs. Heat pumps, common in milder climates, are more efficient than baseboard heaters.
7. Energy Source: The electricity, natural gas, or oil cost varies by province and can change your heating bill.

Tips to Save on Heating Costs

Let’s find out how you can stay toasty without the financial frostbite.

1. Seal Drafts: Check for leaks around windows, doors, and electrical outlets. Sealing these can save from 5 to 20% on heating costs.
2. Smart Thermostats: Install a smart thermostat to lower the temperature automatically when you’re asleep or away. This could save you about 8% yearly on heating and cooling bills.
3. Regular Maintenance: Schedule annual tune-ups for your furnace. A well-maintained furnace in Manitoba can operate more efficiently than a neglected one.
4. Energy-Efficient Windows: If you live in a chilly province, consider double-glazed windows, which can cut heat loss by up to 50%.
5. Use Ceiling Fans: Reverse your ceiling fan to push warm air down and keep the room warmer at lower thermostat settings.
6. Heating System Upgrade: Replacing an old furnace with an energy-efficient model can cut your heating expenses significantly.
7. Change Filters Regularly: Dirty filters in your furnace can increase operating costs. In New Brunswick, clean filters can reduce energy consumption by 5% to 15%.
8. Heat-Only Used Rooms: Shut doors and vents in unused rooms in your residence to focus heating on high-traffic areas.

Read more: Best Tips for Saving Money on Your Heating Costs This Winter

Government Programs and Incentives

The Canadian government has rolled out new measures as of October 26, 2023, to help reduce energy bills and promote a shift to more sustainable home heating solutions. These initiatives include:

• Halting the fuel charge on heating oil deliveries where applicable, starting November 9, 2023.
• Doubling the rural top-up for pollution pricing rebates from 10% to 20%, with the increase beginning in April 2024.
• Providing enhanced federal heat pump grants, making average heat pump installations free for low- to median-income Canadians in participating regions.
• Offering a $250 incentive for low- to median-income citizens to transition to heat pumps.

These actions aim to ease the financial strain of heating costs, particularly for the 1.1 million homes using heating oil, by proposing a pause on the fuel charge and giving additional support for rural residents with higher energy needs.

Furthermore, the government is promoting the adoption of heat pumps, which are more energy-efficient and environmentally friendly, to replace oil heating.

Looking to tap into government rebates for your Canadian home? Check out our guide to find the right rebates for you.

Conclusion

it’s clear that staying warm doesn’t have to burn through your wallet. If you want to upgrade your HVAC system, seek more efficient options, or compare costs, we’re here to help. Our nationwide network of professionals is ready to provide you with HVAC quotes to help reduce your heating system costs.

Don’t let another cold season pass by—get in touch with us for a quote and take the first step towards a warmer, more cost-effective home.