A heat pump is typically more energy efficient than a gas furnace. A heat pump works by transferring heat from the air or ground outside into a home, while a gas furnace generates heat by burning natural gas. Because a heat pump doesn’t generate heat, but rather moves it, it’s considered a more efficient way to heat a home.

Heat pumps can be up to 400% efficient or more (COP of 4:1), meaning they can move three units of heat for every unit of energy they use. Gas furnaces, on the other hand, typically have an efficiency of around 90-95% which means they are less efficient. In general ductless heat pumps are usually more efficient cost wise at -10°C and above vs natural gas furnaces in the Toronto and Southern Ontario region.

However, the efficiency of a heat pump can be affected by the outside temperature. In very cold temperatures, a heat pump may not be able to extract enough heat from the outside air and may need to use an auxiliary heating source, such as electric resistance heating, which would be less efficient than a gas furnace.

It’s important to note that the efficiency of a heating system can also depend on the specific model, proper installation, and regular maintenance. It’s also worth considering the cost of the fuel source, as electricity can be more expensive than natural gas in some areas.