In planning for the future…

In planning for the future of electricity energy efficiency programs to promote beneficial electrifications, HRAI-Canada urges the Government of Ontario and the IESO to consider the unique and substantial benefits that accrue to the electricity system from the deployment of ground source heat pumps (GSHPs). HRAI represents the entire HVACR industry distribution channel (manufacturers, wholesalers, contractors) and does not favour one technology over another. Heat pumps of all types will be a major contributor to the reduction of GHG emissions and energy costs in the heating of homes and buildings across Canada. We are interested, however, in the recognizing and highlighting key technologies that deliver specific benefits that aid in the achievement of important policy goals.

In 2020, HRAI commissioned a study that would assess the role that GSHPs could play in reducing the cost of heating electrification across Canada. Completed by Dunsky Energy Consulting, the analysis, "rooted in detailed modelling of heat pump costs and performance for different building archetypes and climates, [found] that inclusion of more efficient ground-source heat pumps (GSHPs) provides an opportunity to reduce the overall costs and impacts of electrifying space heating in most parts of Canada. That is because the peak load and electric consumption benefits of GSHPs can more than offset their higher upfront costs."

More specifically, the benefits to grid management flow from the simple fact that GSHPs do not exhibit the kind of peak demand impacts that are expected to occur on the coldest days of the year in the expected scenario of a mass deployment of air source heat pumps. By comparison, GSHPs do not suffer a performance reduction on those cold days and therefore have a significant beneficial impact for grid planners.

The analysis of the economic implications suggests that the net benefit to the electricity grid (in avoided infrastructure investment costs) would amount to approximately $40,000 per installed GSHP system. That number represents the societal benefit, over and above the household-level energy cost savings and after allowing for the initial costs of installation.

HRAI is of the view that this significant benefit should be recognized in the form of rebates, favourable tax incentives and/or electricity rates for Ontarians who choose to invest in this unique technology.