Heat pumps & heating

Air-source vs. ground-source heat pumps: which is better?

Answered by the Canadian Energy Standard team · Updated September 13, 2026 · 4 min read

Quick answer

Ground-source heat pumps use the stable temperature underground, so they perform better in winter and deliver roughly 10 to 20% better seasonal savings than high-efficiency air-source systems. Air-source systems cost far less to install and suit most homes.1

How they differ

  • Air-source heat pumps move heat between your home and the outdoor air. Their efficiency drops as it gets colder, and they need backup heat for extreme cold.1
  • Ground-source heat pumps move heat through pipes buried in the ground, where temperatures stay stable year-round, improving winter performance.1

Ontario rebates

Home heated withCold-climate air-sourceGround-source
Electricity, oil, propane or wood$1,250/ton, up to $7,500$2,000/ton, up to $12,000
Enbridge natural gas$500/ton, up to $2,000Up to $3,000

As listed by Home Renovation Savings. Pre-approval is mandatory, and ground-source units must be on the ENERGY STAR geothermal list.2

Which fits your home?

Ground-source makes the most sense where there's space for the ground loop and the higher installation cost can be recovered over time. For most existing homes, a cold-climate air-source heat pump, often paired with backup heat, is the practical choice.

Common follow-up questions

Is a geothermal heat pump the same as ground-source?

Yes. Residential geothermal systems are ground-source heat pumps.

Do both types provide cooling?

Yes. Both air-source and ground-source heat pumps can heat and cool.

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Sources

Answers are general information as reported by the sources listed on the date shown, not personal financial or technical advice. Programs, prices and rules change. Canadian Energy Standard is an independent company, not affiliated with any government, utility or program named here.

  1. Natural Resources Canada, Heating and cooling with a heat pump
  2. Home Renovation Savings, Heat pumps
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