How a Dual Fuel System Works in BC: 2026 Guide for Metro Vancouver Homes
How a heat pump and gas furnace work together, when it makes sense, and which rebates apply
A dual fuel system pairs an electric heat pump with a compatible gas furnace. The heat pump provides cooling and is the primary heating source, and the controls switch to the furnace at a set outdoor temperature. For qualifying residential properties, FortisBC offers a dual fuel heating system rebate of up to $4,000, or up to $8,000 for income-qualified customers, when a gas furnace at least 15 years old is replaced with an eligible central ducted heat pump and compatible gas furnace combination listed by the program. Eligibility and terms apply, and FortisBC determines final eligibility.
This guide covers how the two systems work together, when dual fuel makes more sense than a standalone heat pump or furnace, the rebate conditions, and what to check before installing one.
Last updated October 25, 2026.
Deciding between three options? For a side-by-side comparison of furnace-only, heat pump-only and dual fuel systems, see our furnace vs heat pump in BC guide.
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What Is a Dual Fuel System?
A dual fuel system uses two energy sources. An electric heat pump provides cooling and serves as the primary heating source, while a gas furnace provides heating below the configured switchover point. A compatible indoor heat pump coil is installed in the ducted air system with the furnace, both systems use the furnace blower and ductwork, and compatible controls decide which heating source operates.
How a Dual Fuel System Works
How the two systems share the work across a Metro Vancouver year.
Mild Weather
The heat pump handles heating and cooling. In heating mode it moves heat rather than producing it through combustion or electric resistance, which is where its efficiency comes from.
The Switchover Point
The controls switch heating from the heat pump to the gas furnace at a configured outdoor temperature. For the FortisBC dual fuel rebate, the maximum switchover setting is 5°C in the Lower Mainland and Vancouver Island and 2°C in the Southern Interior and northern BC; the 5°C rule applies across Vanheat’s Metro Vancouver service area.
Cold Weather
Below the configured switchover point, the gas furnace becomes the heating source. Depending on the furnace and controls, it may operate in stages or modulate its output to match the home’s heating demand.
Summer Cooling
The heat pump runs in reverse as an air conditioner, so no gas is used for cooling.
Automatic Controls
A compatible thermostat or control system manages the switchover, so the homeowner does not need to change anything day to day.
Shared Ductwork
Both systems use the home’s ductwork. Retrofitting is most straightforward when the existing ducts are suitably sized and in good condition.
When Dual Fuel Makes Sense
Dual fuel is not always the right answer. Here is how the three main options compare.
Dual Fuel
Can suit homes that want to retain gas backup, homes with heating loads that make a hybrid approach practical, or properties where electrical capacity affects the heat pump options available. An aging furnace at least 15 years old may also qualify for the FortisBC rebate.
Standalone Heat Pump
Suits many homes when sized for the heating load, especially where the goal is to stop using gas for heating or the home is all-electric. BC Hydro offers separate rebates for homes switching from electric heat.
Standalone Furnace
May suit homes with a nearly new furnace, an electrical panel that cannot support a heat pump, a tight upfront budget or no need for cooling. A standard FortisBC rebate is not currently available for replacing an existing natural gas furnace with another standalone gas furnace; separate programs may apply to certain fuel conversions.
Dual Fuel Rebate: Up to $4,000, or $8,000 Income-Qualified
For qualifying residential properties, FortisBC offers a dual fuel heating system rebate of up to $4,000, or up to $8,000 for income-qualified customers, when a gas furnace at least 15 years old is replaced with an eligible central ducted heat pump and compatible gas furnace combination listed by the program. Key conditions include:
- An existing gas furnace at least 15 years old being replaced
- An AHRI certified reference covering the heat pump outdoor unit, the indoor component and the furnace
- A new compatible high-efficiency gas furnace paired with a new central ducted heat pump
- A switchover setting of 5°C or lower in the Lower Mainland and Vancouver Island (2°C or lower in the Southern Interior and northern BC)
- A program-approved heat load calculation for the heat pump sizing
- Installation by a Technical Safety BC licensed gas contractor that meets HPCN requirements
- Existing homes only; new construction is not eligible
Eligibility and terms apply, and FortisBC determines final eligibility. See the FortisBC rebate page and our BC HVAC rebates guide.
Cost: dual fuel systems are quoted in writing after a free in-home estimate. For reference, central heat pump installations typically cost $6,000 to $14,000 and furnace installation starts from $6,000.
Program details last reviewed October 25, 2026.
Components of a Dual Fuel System
Sizing and matching each component correctly matters for comfort, efficiency and rebate eligibility.
Outdoor Heat Pump Unit
Extracts heat from outdoor air in winter and rejects heat from the home in summer. It is sized from the home’s heating load, not just square footage.
Compatible Gas Furnace
Provides heat below the switchover point and moves air through the ducts. Furnace brands we install include Trane, Continental, York, Ducane, Lennox and Bosch.
Indoor Coil
Sits on the furnace and transfers heat between the refrigerant and the air in your ducts.
Thermostat and Controls
Manage the switchover between heat pump and furnace and are configured at installation.
Refrigerant Lines
Connect the outdoor unit to the indoor coil. Correct sizing, installation and commissioning matter for performance.
Ductwork
Distributes air from both systems. Undersized or leaky ducts reduce performance, so we check them during the estimate.
Tradeoffs to Consider
Situations where dual fuel is worth thinking twice about.
Two Pieces of Equipment
Installing a heat pump and a furnace usually costs more upfront than a single system, although rebates may reduce the net cost for qualifying systems.
More to Maintain
Both the heat pump and the furnace need regular maintenance, which can usually be scheduled in one visit.
Stays on Gas
If your goal is to stop using fossil fuels for heating, a standalone heat pump is the better fit.
Mild Areas Use the Backup Less
In milder parts of Metro Vancouver the furnace may run only a small share of the year, so compare the standalone heat pump option too.
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Real reviews from customers across Metro Vancouver, covering heat pump, AC, furnace, boiler and maintenance work.
“VanHeat Services recently completed maintenance on four systems at our home: the AC, air handler, tankless water heater, and HRV. Shaun was very knowledgeable, professional, and thorough… VanHeat Services is now our go-to company for maintaining the heating, cooling, and ventilation systems in our home.”
“Technician was prompt, professional and friendly. Cost for annual servicing of our furnace and tankless water heater was reasonable. We will definitely be calling them again next year.”
“…the inspection was thorough enough to actually find another issue with the boiler system, which is required to keep the house warm in winter. Both issues were fixed within a few hours… I highly recommend this company if you are looking for quick service appointment and affordable price for parts or replacement.”
“We live in Cyprus and have a rented commercial property in Vancouver. We had an issue with the VRF system two nights ago and called Vanheat Services for urgent help. Their crew showed up the very next day and fixed the rooftop unit very quickly. The price was also very reasonable. The Vanheat technicians were professional, reliable, and knowledgeable. We highly recommend Vanheat Services for commercial and strata properties.”
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Dual Fuel System FAQ
Is a dual fuel system worth it in BC?
For many Metro Vancouver homes with gas service and suitable ductwork, a dual fuel system combines heat pump heating and cooling with a gas furnace that takes over below the configured switchover temperature. Whether it is worth it depends on your existing furnace, ductwork, electrical capacity, heating load and rebate eligibility. For qualifying residential properties, FortisBC offers a dual fuel heating system rebate of up to $4,000, or up to $8,000 for income-qualified customers, when a gas furnace at least 15 years old is replaced with an eligible central ducted heat pump and compatible gas furnace combination listed by the program. Eligibility and terms apply, and FortisBC determines final eligibility.
At what temperature does a dual fuel system switch from heat pump to furnace?
The switchover temperature is set during installation based on the equipment, the home’s heating load and energy costs. For the FortisBC dual fuel rebate, the maximum switchover setting is 5°C in the Lower Mainland and Vancouver Island and 2°C in the Southern Interior and northern BC, so in Metro Vancouver the heat pump carries the heating load down to at least 5°C.
Is a dual fuel system better than a standalone heat pump for Vancouver?
It depends on the home. A standalone cold-climate heat pump suits many Metro Vancouver homes when it is sized for the home’s heating load, and it removes the need for gas heating. A dual fuel system can suit homes that want to retain a gas furnace as backup, or where the heating load, existing ductwork, electrical capacity or equipment configuration makes a hybrid system practical. See our furnace vs heat pump in BC guide for a full comparison.
Can I add a heat pump to my existing furnace?
Sometimes. Many homes with a gas furnace and ductwork can be converted to dual fuel by adding a heat pump with a compatible indoor coil and controls, if the existing furnace is suitable. The FortisBC rebate, however, requires replacing a furnace at least 15 years old with a new eligible heat pump and furnace combination. We assess your ductwork, electrical panel, furnace and heating load before recommending equipment.
What rebates are available for dual fuel systems in 2026?
For qualifying residential properties, FortisBC offers a dual fuel heating system rebate of up to $4,000, or up to $8,000 for income-qualified customers, when a gas furnace at least 15 years old is replaced with an eligible central ducted heat pump and compatible gas furnace combination listed by the program. The system needs an AHRI certified reference covering the heat pump outdoor unit, the indoor component and the furnace, a switchover setting of 5°C or lower in the Lower Mainland, a program-approved heat load calculation and installation by a Technical Safety BC licensed gas contractor that meets HPCN requirements. New construction is not eligible. Eligibility and terms apply, and FortisBC determines final eligibility.
How much does a dual fuel system cost?
Dual fuel systems are quoted in writing after a free in-home estimate, because the cost depends on the heat pump, the furnace, ductwork and any electrical work. For reference, central heat pump installations typically cost $6,000 to $14,000 and furnace installation starts from $6,000. Rebates may reduce the net cost for qualifying systems.
Who installs a dual fuel system?
Heat pump work is performed by Red Seal certified HVAC technicians, and gas furnace work by certified, professional and bonded gas technicians licensed with Technical Safety BC. Vanheat Services is a Home Performance Contractor Network member and a FortisBC Trade Ally Network member.
Ready to Explore a Dual Fuel System?
Free in-home estimates across Metro Vancouver. We check your furnace, ductwork, electrical panel, heating load and rebate eligibility before recommending dual fuel, a standalone heat pump or a standalone furnace. Qualifying residential installations include a 10-year parts and labour warranty.
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