Getting off oil or baseboard heat is one of the best money moves an Ontario homeowner can make. It is also a bigger job than swapping a furnace, and the quote you get rarely shows the whole thing.
Here is what is really involved: the permit, the sizing, the oil tank, the chimney, the ducts you might not have, and the rebates that pay the most to exactly these homes.
Usually yes. Going from oil, electric or propane to natural gas or a heat pump changes the type of heating system. That is not the like-for-like swap that some towns let slide without a permit.
The permit usually wants a heat loss, the new equipment size, and how the heat gets to each room. If you are adding a gas line, the gas work must be done by a licensed gas technician, and the gas company handles the meter and service.
Call your building department before you sign a contract. Ask what they want for a fuel switch. Five minutes on the phone beats a stop-work order.
A quote that just says “remove oil furnace, install gas furnace” is missing things. Ask about the tank, the chimney, the gas line, the permit and who pulls it.
Many building departments also want the ventilation summary (RMVDS) with a new heating system permit, especially if the house is getting tighter at the same time.
The new system is sized from a CSA F280 heat loss, not from the old nameplate. Most old oil furnaces are far bigger than the house needs, especially if windows or insulation were upgraded since.
The tank has to be properly decommissioned or removed. Oil tanks fall under the TSSA, so use a registered fuel oil contractor and keep the paperwork for your insurer and future buyers.
A high-efficiency gas furnace vents out the side wall through plastic pipe. If the water heater stays on the old chimney by itself, the chimney may need a liner.
New service from the street, a meter, and piping to each appliance. The gas company sets the meter. A licensed gas technician does the rest.
Oil furnaces usually have ducts. Electric baseboard homes do not. No ducts means ductless heat pumps, hydronic radiators, or a big, messy duct job.
A heat pump may need a new circuit, and sometimes a panel upgrade. Check before you commit. See heat pumps and your electrical panel.
Simplest if gas is on your street and you have ducts. Lowest upfront cost. Smallest rebate.
Uses the same ducts if they are big enough. Oil homes get the larger rebate, but must size the heat pump to carry the whole oil load. See will your ducts work.
Usually ductless heads. Often the biggest drop in heating bills of any switch, and the larger rebate tier.
Common in rural Ontario. Many keep the propane furnace as backup for the coldest nights. See backup heat.
Ontario’s Home Renovation Savings program pays far more for a cold-climate heat pump in a home heated by electricity, oil, propane or wood than in a gas-heated home. Pre-approval is required before installation, through a participating contractor.
Oil-heated homes have one extra rule: the heat pump has to be sized to fully offset the oil heating load. That is a heat loss question. See the full rebate guide for amounts and steps.
Switching this year? Get the heat loss first. It sizes the new system and answers the rebate sizing question in one report.
Get Free Quote →Usually yes. Changing the type of heating system is not a like-for-like swap, so most Ontario building departments want a permit. The gas work itself must be done by a licensed gas technician.
To size the new equipment properly, yes, and most permits for a new heating system will ask for one. The old oil furnace size tells you almost nothing. Most of them were oversized the day they went in.
It has to be properly taken out of service or removed. Oil tanks are regulated by the TSSA, so use a registered fuel oil contractor and keep the paperwork. Your insurer and any future buyer will ask for it.
Ductless heat pumps are the usual answer. New ductwork in a finished house is possible but messy and expensive. Hydronic radiators are another option. The heat loss tells you how much heat each room needs, which decides how many indoor heads you need and where.
Yes. Ontario’s Home Renovation Savings program pays much more for a heat pump in homes heated by electricity, oil, propane or wood than in gas-heated homes. Oil-heated homes must size the heat pump to fully carry the oil heating load. See the rebate guide.
A new high-efficiency gas furnace vents out the side wall through plastic pipe, not the chimney. If a water heater is left alone on the old chimney, the chimney may need a liner. Ask your installer before the work starts.
Send us a floor plan or sketch and tell us about the walls, windows and insulation. We calculate the heat loss so any quote can be checked against a real number.