O2 HVAC

O2 HVAC& Mechanical Ltd
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Dual Fuel Heat Pump Systems for Fraser Valley Homes

A new high-efficiency gas furnace and a cold-climate heat pump, designed and installed as one system. The heat pump heats and cools your home most of the year; the furnace takes over automatically when an Arctic outflow hits. Eligible homes can get up to $4,000 back from FortisBC.

High-efficiency gas furnace with heat pump coil, dual fuel system installed by O2 HVAC
What it is

What Is a Dual Fuel Heat Pump System?

A dual fuel heating system uses two heat sources: an electric heat pump and a natural gas furnace. A smart thermostat decides which one runs, based on the outdoor temperature.

Some people call it a hybrid heat pump furnace, or a heat pump with gas furnace backup. It’s the same idea: the right fuel at the right temperature.

Heat pump outdoor unit mounted beside a home, dual fuel installation
Outdoor heat pump unit beside a new duplex
Why it fits

Why Dual Fuel Fits Fraser Valley Weather

Abbotsford, Chilliwack and Mission have mild, wet winters, with most days between 0°C and 8°C, which is where heat pumps do their best work. But a few times each winter, Arctic outflow winds push temperatures far lower. In January 2024 Abbotsford dropped to −15.4°C, and BC Hydro set a record for power demand.

A dual fuel heat pump handles both: efficient electric heat for most of the season, and reliable gas heat for the coldest days. Summers matter too. Abbotsford hit 42.9°C in June 2021, and a dual fuel system gives you full air conditioning without a separate AC unit.

Running costs

Gas or Electric? Dual Fuel Lets You Use Both

Since BC removed the consumer carbon tax in April 2025, natural gas has become cheaper to heat with, while BC Hydro rates have kept rising. Electric heating in winter also pushes many homes into BC Hydro’s higher Step 2 rate.

That’s why we rarely recommend switching a gas home fully to electric. A dual fuel system lets you:

Savings depend on your home, your thermostat settings and current rates. We’ll show you expected running costs using today’s FortisBC and BC Hydro rates before you decide.

What’s included

What's Included in Our Dual Fuel Package

Replacing your water heater too?

Who it’s for

Is a Dual Fuel System Right for You?

A dual fuel system is usually the best fit if

It’s usually not the best fit if your furnace is only a few years old (adding a heat pump to it may be enough) or your home is heated with electric baseboards (a ductless or ducted heat pump on its own is usually better).

Rebates

Dual Fuel Rebates From FortisBC

FortisBC relaunched its dual fuel rebate for installations completed on or after October 15, 2026. Most eligible homes can get up to $4,000.

Income-qualified households can get up to $8,000. Your existing gas furnace must be at least 15 years old, and the installation must follow FortisBC’s rules on sizing, equipment, the switchover temperature and a connected thermostat. We handle all of that.

FortisBC dual fuel rebate: up to $4,000Up to $8,000 for income-qualified homes. BC Hydro rebates for homes switching from electric heat.
Process

How Our Dual Fuel Heat Pump Installation Works

01

Free in-home estimate

We check your furnace’s age, ductwork, electrical panel and where the outdoor unit can go.

02

Load calculation

Room by room, to CSA F280.

03

Written quote

Equipment, permits, running-cost estimate and expected rebate, line by line.

04

Installation

Usually two days: the old furnace and AC removed, new furnace and heat pump installed, vented and wired.

05

Commissioning

We set the switchover temperature, test both heat sources and cooling, and submit the rebate photos and data.

06

Walkthrough

We show you the thermostat and how the system switches between gas and electric.

Have a question?

A licensed technician answers 24 hours a day.

Cost

How Much Does a Dual Fuel Heat Pump Cost?

What changes the price: system size, furnace type, heat pump efficiency, ductwork changes, electrical panel capacity and venting. The FortisBC rebate is paid after installation, once your application is approved.

SystemTypical installed price before rebates
Dual fuel system: two-stage furnace and cold-climate heat pump[price range]
Dual fuel system: modulating furnace and variable-speed heat pump[price range]
Heat pump added to an existing furnace (not the dual fuel package)[price range]
FAQ

Dual Fuel Heat Pump FAQ

Usually around 0°C to 5°C, depending on your home and rates. For the FortisBC rebate in the Lower Mainland, the switchover must be set at 5°C or lower.

For most gas-heated Fraser Valley homes, yes. It keeps gas as a reliable backup for outflow cold snaps and lets you use whichever fuel is cheaper. All-electric makes more sense in homes without gas, or in new builds aiming for higher Zero Carbon Step Code levels.

Yes, if the furnace is in good condition. That’s not the full dual fuel package and won’t qualify for FortisBC’s rebate, but it adds cooling and efficient mild-weather heat.

Usually two days, including removing the old equipment, installing both units and commissioning.

No. Like any modern furnace, the gas furnace needs power for its fan and controls. A generator connection can be added if outages are a concern in your area.

Family home with warm lights on at dusk

Get a Free Dual Fuel Quote

Book a free in-home estimate and we’ll show you the system, the running costs and the rebate you could get. Serving Abbotsford, Chilliwack and Mission. Prefer to talk first? Call 604-619-0202.

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