When you’re looking at a home, it’s easy to spend most of your time thinking about the purchase price and mortgage payment. Those are big numbers, so naturally they get most of the attention. But once you own the house, you have another set of bills to live with every month, and in Prince Edward Island, heating can be one of the bigger ones.
Two homes with similar asking prices can have very different heating costs. One might have good insulation, an efficient heat pump and relatively low energy use. The other may look just as attractive but need much more energy to stay comfortable through January and February. Before buying, it helps to know which one you’re looking at.
Start With the Actual Heating Bills
The easiest place to begin is with the seller’s records. Ask for a full year of electricity bills if they are available. Two years is even better because one winter can be milder or colder than another. If the home uses oil, propane, wood or pellets, ask about those costs too.
Don’t look at the electricity bill by itself. A seller may tell you the home costs $1,800 a year in electricity, which sounds quite reasonable. But if the household also bought $2,200 worth of heating oil during the year, the real energy cost was closer to $4,000. The opposite can happen as well. A home with a higher electricity bill may use electricity for nearly everything — heating, hot water, cooking and appliances — with little or no spending on another fuel.
What matters is the whole picture. It also helps to look at energy consumption rather than just the dollar amount. Electricity rates and rebates changed during 2026, so a bill from last winter does not necessarily show exactly what the same amount of electricity will cost this winter.
“Buyers can spend a lot of time negotiating a few thousand dollars on the purchase price, then own the home for years without ever having asked what it costs to heat. I think those operating costs deserve a place in the buying decision too.”
— Andrew Brown, Broker/Owner, CENTURY 21 Northumberland Realty
That does not mean a house with higher heating costs is automatically a poor purchase. It just means those costs should be understood before you decide what the property is worth to you.
Find Out What Actually Heats the House
PEI homes use all kinds of heating systems. You may find heat pumps, oil furnaces and boilers, electric baseboards, propane, wood stoves or some combination of several systems. A listing might simply say “heat pump,” but that does not tell you how the entire home stays warm.
A wall-mounted mini-split in the living room may do a great job on the main floor while the upstairs bedrooms still depend on electric baseboards. Another property might have a central ducted heat pump that serves almost the entire house. They are very different arrangements.
Ask the seller what they actually use during the coldest weeks of winter. Does the heat pump do most of the work? Does the oil furnace come on regularly? Are bedrooms heated with baseboards? Is the wood stove used every day or only during power outages and very cold weather? Those answers are often more useful than simply reading the list of heating equipment.
A Heat Pump Doesn’t Automatically Mean Low Heating Costs
Heat pumps can be very efficient because they move heat rather than creating it directly. They also provide cooling in summer, which is one reason they have become so common across PEI. But the words “heat pump” should not end the conversation.
The age and condition of the equipment matter. So does the size of the unit, where it is located and how much of the house it actually serves. A heat pump installed in an open living area may have difficulty getting warm air into closed bedrooms at the other end of the house.
Ask when the equipment was installed and whether it has been serviced regularly. If the heat pump is getting older, it is also sensible to think about eventual replacement costs. Natural Resources Canada provides useful information about heat-pump efficiency, sizing and cold-weather performance.
Natural Resources Canada — Air-Source Heat Pumps
The best question may be very simple: How do you heat this house in January?
Sometimes the House Matters More Than the Heating System
You can install efficient heating equipment in a house that loses heat almost as quickly as you put it in. That is why insulation deserves just as much attention as the furnace or heat pump.
Look at the attic, basement and foundation. Ask whether exterior walls have ever been upgraded. Pay attention to drafts around doors and windows, older additions and rooms that seem noticeably colder than the rest of the house. A well-insulated older home can sometimes be surprisingly inexpensive to heat. A newer-looking home with poor insulation or significant air leakage can be another story.
PEI currently offers subsidized EnerGuide home energy assessments for homeowners at $99 plus HST. The assessment looks at the home’s energy performance and identifies areas where improvements could make the biggest difference.
The Province also continues to offer insulation programs for eligible homeowners, including free insulation for some qualifying households and rebates toward approved insulation and air-sealing work.
If you are buying rather than already owning the home, you may not be able to arrange all of this before closing without the seller’s cooperation. But knowing that upgrades may be needed allows you to put those costs into your plans.
Pay Attention to Older Oil Tanks
If a home uses heating oil, there are really two pieces of equipment to investigate: the heating system and the oil tank. An older furnace may still have years of useful life left, while an aging tank may be a more immediate concern.
Ask when the tank was installed, whether it has been inspected and whether there are records available. Look for signs of corrosion, staining or leakage, and ask your insurance company whether the tank presents any coverage issues.
PEI requires home heat-tank installation, alteration and inspection work to be carried out by licensed installers. The Province also provides guidance for homeowners on checking the age, condition, supports and connections of their tank.
This deserves more attention than simply asking what a replacement tank costs. A leaking oil tank can create environmental damage and potentially expensive cleanup work. If the tank is old or its history is unclear, investigate it before the purchase becomes firm.
Electricity Costs Changed in PEI in 2026
Looking at last winter’s electricity bills also requires a little context because electricity costs changed during 2026. PEI’s former 10% Government Energy Rebate ended on June 30, 2026, so the rebate disappeared from bills issued after that date.
Maritime Electric rates also changed on August 1, 2026, with an adjustment of approximately 3.1% following regulatory approval related to Hurricane Fiona restoration costs. That means a homeowner using the same amount of electricity this winter may pay more than they did during the winter of 2025–26.
This does not mean you should simply add 10% and 3.1% to the seller’s old bill. The former rebate did not apply in that simple way to every dollar on every bill, and actual costs depend on energy use and other charges. Use older bills to understand how much energy the house consumes, but remember that the cost of that energy has changed.
Buyers in Summerside should also check the rates that apply through Summerside Electric rather than assuming Maritime Electric rates apply everywhere on the Island.
Don’t Count on an Old Heat-Pump Rebate
Another thing that changed in 2026 is the rebate situation. PEI’s regular residential heat-pump rebates ended on April 15, 2026, and applications for the Free Heat Pump Program and Oil to Heat Pump Affordability Program are also closed to new applicants.
This matters if you are looking at a house with an older heating system and thinking, “We’ll just install a heat pump after we move in and get a rebate.” That rebate may no longer be available.
There are still programs for insulation and certain other energy improvements, and eligible homeowners may qualify for PEI’s Energy Efficiency Loan Program. But buyers should check what is actually available now rather than building a renovation budget around a program they remember from a year or two ago.
“An older heating system doesn’t necessarily make a home a bad buy. The question is whether you know what needs to be done and have allowed for it in your budget. Sometimes a well-kept older home with good insulation can be a much better purchase than people expect.”
— Andrew Brown, Broker/Owner, CENTURY 21 Northumberland Realty
That is a much better way to look at it than simply dividing homes into “new heating system” and “old heating system.”
What if the House Needs Upgrades?
A home that needs some energy improvements can still be an excellent purchase. The important part is knowing about those improvements before you buy.
Find out how old the heating equipment is and ask for service records if they exist. If the furnace, boiler or heat pump appears to be nearing the end of its life, talk with a qualified contractor about likely replacement options and costs.
If you are considering switching from oil to electric heating, find out whether the home’s electrical service can support the equipment you have in mind. A major electrical upgrade can add considerably to the project. And don’t automatically assume replacing the heating system is the first thing the house needs. If the attic has very little insulation and the basement is leaking heat, spending money there may improve comfort and reduce energy use regardless of which heating system you eventually choose.
Get actual estimates where possible. Online averages can be useful for general research, but the price of work on a specific PEI home depends on the house.
Compare the Whole Cost of Two Homes
Imagine two fictional houses. House A is listed for $375,000. It has a newer heat pump, good insulation, documented energy costs and heating equipment that appears to be in good condition. House B is listed for $355,000. It has an older heating system, limited attic insulation and an oil tank that may need to be replaced.
The $20,000 difference in asking price makes House B look cheaper. It may still be cheaper. But if you need to replace equipment, improve insulation and deal with the oil tank soon after moving in, the gap starts to shrink. Depending on the work required, you might even prefer paying more for House A and having fewer immediate expenses.
There is no universal right answer because buyers have different budgets and different comfort levels with renovations. Just compare the complete picture rather than the price on the listing.
Use the Home Inspection to Ask Better Questions
A home inspector can help identify concerns with heating equipment, insulation, ventilation, moisture and other parts of the house. But don’t expect a standard home inspection to answer every technical question.
If there are concerns about an oil furnace, boiler or heat pump, a heating contractor may need to look at the equipment. An electrician may be needed if you are considering a major change to electric heating. Other specialists may be appropriate depending on what the inspection uncovers.
Try to think about how the home will perform in February, even if you are walking through it on a pleasant October afternoon. Does the attic appear well insulated? Are there signs of drafts or condensation? Are some rooms noticeably colder? How are the upstairs bedrooms heated? Does the seller use a secondary heating source during cold weather?
The seller’s experience, the inspection and the energy records can give you a much better picture when you put them together.
Five Questions to Ask Before You Buy
Before making your final decision, there are five questions worth answering.
What did the home really cost to heat during the last year? Look at electricity and all other heating fuels together.
Which systems actually heat the house during winter? A heat pump may be doing all the work, or it may be only one part of the system.
How old is the equipment and how has it been maintained? Replacement costs are easier to deal with when they are expected.
How well insulated is the house? Efficient equipment can only do so much if the home is losing heat.
What improvements are you likely to pay for after moving in? Add those to your buying budget rather than treating them as a problem for another day.
Your REALTOR® can help request available records and identify questions to ask, while inspectors and qualified contractors can investigate the technical issues.
A Warm Home Shouldn’t Come With a Financial Surprise
A house can have everything you want during the showing. The kitchen works. There are enough bedrooms. You like the neighbourhood and can already picture yourself living there. None of those things tells you what it will cost to keep the house warm.
That does not mean you should avoid older homes, oil heat or houses that need some energy upgrades. Many of those properties can be very good buys. The goal is simply to understand what you are buying.
Check the bills. Find out how the house is actually heated. Look at the age of the equipment and the condition of the insulation, and allow for any work that may be coming. A little homework before closing can make your first PEI winter in the new house a lot more comfortable — in more ways than one.
