Should I go with a cold climate heat pump or stick with oil heat in NB?

Cold climate heat pumps are the clear winner for most New Brunswick homes, offering significant savings and environmental benefits over oil heating. With NB's push toward electrification and rising oil costs, heat pumps represent the future of home heating in the province.

Heat pumps rated to -25°C or colder will handle the vast majority of New Brunswick's winter weather while providing efficient heating and cooling. During extreme cold snaps that drop below -25°C (which happen but aren't sustained), you'll need backup heating — many homeowners keep their existing oil furnace as backup or install electric baseboard for the few coldest days.

The financial case is compelling. Oil heating costs have become increasingly volatile, often running $3,000-$5,000+ annually for a typical NB home. A properly sized cold climate heat pump can cut your heating costs by 40-60%, with the added bonus of air conditioning during our increasingly warm summers. Installation typically runs $8,000-$15,000 for a ducted system or $12,000-$20,000 for a multi-zone mini-split setup.

NB Power's Total Home Energy Savings Program offers rebates for qualifying heat pump installations, helping offset the upfront cost. The payback period is typically 5-8 years, and heat pumps generally last 15-20 years with proper maintenance.

From a practical standpoint, heat pumps require less maintenance than oil systems — no annual tank inspections, no fuel deliveries to schedule, and no risk of running out of heating fuel during a winter storm. If you're keeping oil as backup, you can significantly reduce your annual oil consumption and tank maintenance concerns.

Consider your home's characteristics when deciding. Well-insulated homes built after 1990 are ideal candidates. Older homes may benefit from some weatherization first — air sealing and insulation upgrades will improve heat pump performance and reduce the size (and cost) of the system you need.

For rural properties, heat pumps eliminate the logistics of oil delivery, which can be challenging during winter road conditions. If your oil tank is aging (20+ years), replacement costs ($3,000-$8,000+ for underground tanks) make the switch even more attractive.

Your next step is getting a proper heat load calculation from a licensed HVAC contractor. They'll assess your home's insulation, windows, and heating requirements to size the system correctly. An oversized heat pump won't operate efficiently, while an undersized unit will struggle during cold weather. Look for contractors certified in cold climate heat pump installation — the technology and installation requirements differ significantly from standard heat pumps.

Find qualified HVAC contractors familiar with NB's climate requirements in our New Brunswick Construction Network directory.