A dual fuel heat pump in BC pairs an electric heat pump with a gas furnace that takes over in cold weather. All-electric means the heat pump does all the heating and the gas furnace comes out. If you already have a gas furnace in Greater Victoria, those are your two heat pump options, and in 2026 the deciding factor is not the one most people expect. On current BC Hydro and FortisBC rates, the running cost of each unit of heat is close. Rebates, the gas basic charge and the age of your furnace usually decide it.
For the broader heat pump versus furnace question, see our heat pump vs gas furnace comparison. This post only covers the choice between keeping gas as backup and going fully electric.
Dual fuel heat pump vs all-electric: the short comparison
| Dual fuel (heat pump + gas furnace) | All-electric heat pump | |
|---|---|---|
| Standard CleanBC rebate in Victoria | $0 (gas-home offers are northern BC only) | $0 (gas-home offers are northern BC only) |
| Energy Savings Program, Level 1 / 2 / 3 | $12,000 / $5,000 / $3,000 | $13,000 / $7,000 / $3,500 (central or 3-head) |
| Combined space and water heat pump option | No | Yes, $16,500 / $11,500 / $7,000 |
| Gas basic charge | Keep paying about $154 a year | Gone once the meter is removed |
| Program rule | Heat pump must run down to 5 C or lower on Vancouver Island, for the life of the product | All gas heating equipment must be removed |
| Equipment to maintain | Two systems | One system |
| Permits | Electrical permit, plus a gas permit for modifying the furnace | Electrical permit, plus a gas permit for removing the furnace |
Rebate amounts are from the CleanBC Energy Savings Program for invoices on or after July 6, 2026. Level 3 covers, for example, a household of four with income up to $189,800. The standard program pays nothing to gas-heated homes south of 100 Mile House, dual fuel or not. Our Energy Savings Program guide has the full income table.
What does gas heat cost in BC in 2026?
FortisBC's rate summary for Vancouver Island and the Mainland (effective July 1, 2026) lists a residential basic charge of $0.4216 per day and a total variable charge of $12.601 per GJ: delivery $8.469, storage and transport $2.472, and the cost of gas itself $1.660. Those figures exclude GST and municipal fees. The BC carbon tax was eliminated on April 1, 2025, so it is no longer part of the bill. The cost of gas line resets quarterly, so check for a newer FortisBC summary.
Most of what you pay per GJ is delivery and storage, not the gas. That matters for dual fuel: if the furnace only runs on the coldest days, you still pay the full daily basic charge all year.
Gas vs heat pump: cost per GJ of heat delivered
A GJ is about 277.8 kWh. Here is what one GJ of heat in your house costs from each source, on the 2026 rates above. For electricity we use BC Hydro's Step 2 rate of 14.08 cents per kWh, which applies once you pass about 1,350 kWh on a 60-day bill; Step 1 is 11.87 cents.
| Heat source | Cost per GJ of heat (Step 2 power) | Cost per GJ of heat (Step 1 power) |
|---|---|---|
| Gas furnace, 95% efficient | $13.26 | $13.26 |
| Gas furnace, 80% efficient | $15.75 | $15.75 |
| Heat pump at COP 2 | $19.56 | $16.49 |
| Heat pump at COP 2.5 | $15.64 | $13.19 |
| Heat pump at COP 3 | $13.04 | $10.99 |
The break-even point against a 95% furnace is a heat pump COP of about 2.95 on Step 2 power, or about 2.49 on Step 1. Above that, the heat pump is cheaper per unit of heat. Below it, gas is. A heat pump's COP falls as the outdoor temperature drops, which is the whole idea of dual fuel: let the furnace take the cold hours when COP is lowest. Gas heat figures exclude the daily basic charge, which you pay regardless of use.
Worked example: a gas-heated Saanich home
Assume a house that burns 60 GJ of gas a year in a 95% furnace, so it needs about 57 GJ of heat. All electricity priced at Step 2, before GST. The COP values are assumptions to show the range, not a promise.
| Setup | Approximate yearly heating cost |
|---|---|
| Gas furnace only (60 GJ plus basic charge) | about $910 |
| Dual fuel: heat pump covers 80% of heat at COP 3, furnace the rest, plus basic charge | about $900 |
| All-electric heat pump, seasonal COP 2.5 | about $892 |
| All-electric heat pump, seasonal COP 3 | about $743 |
The point is not the exact dollar figures. It is that on 2026 rates the running-cost gap between these setups is small, often within a couple of hundred dollars a year, so the upfront side decides. Our heat pump operating cost guide and the operating cost calculator give month-by-month figures for your own house.
When dual fuel makes sense in BC
- Your gas furnace is newer and in good shape. Adding a heat pump to the existing ducts keeps a working appliance in service.
- You want backup heat during outages of the heat pump. Note that most gas furnaces still need electricity to run their blower and controls.
- You also use gas for a range, fireplace or water heater and will keep the meter anyway, so the basic charge is not a saving for you.
- The ducts or the electrical panel limit how large a heat pump you can install, and a smaller unit with backup is the practical fit.
When all-electric makes more sense
- Your furnace is near the end of its life. Replacing it with a furnace you will barely run rarely pays. Our list of furnace replacement signs helps you judge.
- Gas is only used for heat. Removing the meter removes about $154 a year in basic charges.
- You qualify for the Energy Savings Program. All-electric pays more at every level, opens the combined space and water option, and the program's electrical service upgrade rebate is written for homes converting from fossil fuel to a heat pump.
- You want one system to service.
How to decide
- Check your income level against the Energy Savings Program table. That sets the rebate gap.
- Find your furnace's age and efficiency on the rating plate.
- List every gas appliance. If heating is the only one, all-electric removes a fixed charge.
- Get a heat load calculation and ask the installer for the heat pump's capacity and COP at 5 C and colder.
- Get the electrical panel checked before you choose equipment size.
- Get quotes for both setups from a registered contractor and compare net cost after rebates.
Not sure which fits your house? Our ducted vs ductless guide covers the equipment side, and you can ask us to quote both options or see our heat pump services.