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Households that go electric could save hundreds a month, report says
A clean energy think tank says it can spot hundreds of dollars in monthly savings for Canadian families who switch their vehicles and home energy away from gas.
estimates a Vancouver household, for example, could slash $777 from their monthly bills by overhauling what they drive and how they cool and heat their house. Across the provinces, the think tank sees up to $921 in savings in some situations.
Their estimates are based on a family that has two vehicles and a natural gas furnace, water heater and stove. For a Vancouver family that drives a Honda CR-V and a Ford F-150, the report estimates it takes $1,886 in monthly payments and operating costs. Two electric counterparts, the Volkswagen ID.4 and Ford F-150 Lightning, would only cost $1,169 per month.
Source: Clean Energy Canada
Switching to a cold climate air source heat pump, as well, would reduce heating and cooling costs by around $60 per month in Vancouver, the report says.
Source: Clean Energy Canada
The report makes these same calculations across all provinces, for the different living situation of a detached house, townhouse and condo. It also factors in different pre-existing heat systems for different provinces, like heating oil for Prince Edward Island and Nova Scotia, and electric baseboard heating for Quebec, New Brunswick and Newfoundland and Labrador.
Savings were most pronounced in Atlantic Canada, where the report said detached homeowners could save upwards of $800, and lowest in Alberta.
Upfront costs
The report cites upfront costs as the largest barrier for Canadians owning an electric vehicle. It says Canadians only have three vehicle options that cost less than $45,000, compared to 12 in Europe. Consequently, EVs made up 24 per cent of vehicle sales in Europe, compared to 12 per cent in Canada in 2023.
But the report says in the long run, EVs end up being cheaper for drivers due to the significantly lower price of powering the vehicle. It says EV drivers pay the equivalent price of $0.40 per litre of gas to charge their cars. According to the think tank鈥檚 calculations, despite a Volkswagen ID.4 Pro costing $17,870 more up front, after four years and eight months, consumers will break even on costs, including average rebates.
Heat pumps also typically cost more up front, and despite a lower cost to run, the report cites a discontinuation of the federal as hurting the cost effectiveness of installing one in some places.
Here are the programs and rebates Clean Energy Canada has put together for those who might want to purchase a heat pump:
Federal
toward replacing an oil furnace with a heat pump.
interest-free loan toward heat pump installation and efficiency upgrades.
, starting in 2025-26, "to launch a new Canada Greener Homes Affordability Program that will support the direct installation of energy efficiency retrofits for Canadian households with low- to median-incomes." Details of the program have yet to be released.
Ontario
Customers of Enbridge Gas are eligible for rebates of for a cold climate air source heat pump.
Homeowners currently heating with electricity can receive up to $5,000 toward an air source heat pump from IESO's Save On Energy program, and low-income households could receive a free cold climate air source heat pump.
Nova Scotia
Free heat pumps () for low-income homeowners switching away from oil heating.
for heat pumps in other households.
Prince Edward Island
for households with a net income below $100,000.
Point-of-sale rebates up to $2,500 for air source heat pumps and up to $4,000 for ground source heat pumps for other households.
British Columbia
in rebates depending on income, household size and heat pump type.
Manitoba
depending on heated floor area, heat pump capacity and certain characteristics of the home.
New Brunswick
for an air source and up to $2,000 for a ground source heat pump.
Newfoundland and Labrador
to a central heat pump and up to $22,000 for income-qualified households.
Quebec
for the installation of a high-performance heat pump.
Yukon
costs up to a maximum of $8,000.
Alberta, Saskatchewan, Northwest Territories and Nunavut
No rebates for heat pumps.
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