COST SAVINGS & RETURN ON INVESTMENT
How the investment can pay for itself
The financial return depends on what you are replacing, your home's heating load, equipment efficiency, electricity use, installation cost and future energy prices. The strongest savings case is often a home replacing electric resistance heating or substantially reducing oil use.
Example: electric resistance heat
Suppose a home requires approximately 15,000 kWh of useful heat over a year. Electric resistance heat uses roughly 15,000 kWh of electricity to provide that heat.
≈ $2,869/year
At Nova Scotia Power's standard residential energy rate of 19.128¢/kWh, before the fixed monthly base charge and taxes.
Example: heat pump at COP 3
If a heat pump averaged a seasonal coefficient of performance (COP) of 3, approximately 5,000 kWh of electricity would provide the same 15,000 kWh of heat.
≈ $956/year
That is an illustrative energy-charge difference of about $1,913 per year before considering installation cost, maintenance, backup heat, financing, taxes or changes in electricity rates.
Important: This is an illustration, not a promised savings figure. Actual seasonal COP, heating load, system capacity, defrost operation, outdoor temperature, thermostat settings and backup heat all affect real-world consumption. Nova Scotia Power's standard residential energy rate is currently 19.128¢/kWh, effective May 1, 2026, plus a $20.08 monthly base charge.
For a homeowner, the simple payback calculation is straightforward: installed cost ÷ estimated annual energy savings = approximate simple payback period. For example, if an installed system costs $12,000 and saves an estimated $1,900 per year in electricity, the simple payback would be about 6.3 years. Financing, rebates or incentives, maintenance, equipment life and future energy prices can materially change the actual return.