Optimizing Commercial Heating in Montréal, Laval and Longueuil: Economic Comparison Between Natural Gas and Electricity
In today’s economic climate, businesses in Montréal, Laval, Longueuil, the North Shore and South Shore are faced with crucial strategic decisions regarding their commercial heating systems. Choosing between a natural gas heating system and an electric system isn’t just a matter of technical preference — it’s a financial, environmental, and operational issue.
At AirGreen, we’ve been supporting businesses, offices, warehouses and institutions for over a decade with the sizing, installation, and maintenance of commercial HVAC heating solutions. Thanks to our field expertise, we offer an informed perspective based on real-world data to help you make the best energy choice for your specific needs.
Understanding the Two Heating Technologies
Commercial Heating with Natural Gas
Widely used in large buildings, natural gas heating is known for its immediate heat output, reliability, and high performance in spaces with strong thermal demands. These systems typically operate with a gas furnace or boiler connected to a duct or radiator network.
Advantages:
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Historically lower operating costs than electricity.
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Rapid heating of large spaces.
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Compatible with industrial-grade ventilation systems.
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Ideal for buildings with poor insulation.
Disadvantages:
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Higher installation costs (gas lines, specific ventilation, flue systems).
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Dependence on a gas distribution network.
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Fewer available grants for this type of system.
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Higher carbon footprint.
Commercial Electric Heating
Electric heating, especially with central heat pump systems or commercial baseboard heaters, has seen a surge in popularity in Montréal and surrounding areas thanks to clean electricity from Hydro-Québec. High-efficiency central heat pumps, such as those from Bosch, Goodman, Fujitsu, or Lennox, allow for both heating and cooling of commercial spaces through a single installation.
Advantages:
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Generally lower installation costs.
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No direct on-site greenhouse gas emissions.
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Easier to maintain.
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Eligible for various grants and energy efficiency programs (LogisVert, Énergir, Transition énergétique Québec).
Disadvantages:
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Less effective in extreme cold without a high-efficiency heat pump.
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Electricity costs are higher than gas, but offset by performance.
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May require upgrades to the building’s electrical infrastructure.
Case Study: Central Heat Pump Installation for a Business in Laval
Last February, we completed the installation of two BOSCH BOVA-60 IDS Premium central heat pumps for a logistics warehouse in Laval. The goal was to replace an aging natural gas system.
Technical Details:
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Capacity: 60,000 BTU each.
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Refrigerant: R-454B (environmentally friendly).
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SEER: 20, HSPF: 10.5.
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Reversible: heating in winter, cooling in summer.
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Eligible for $6,500 in government grants.
Challenges Faced:
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Adapting ductwork originally designed for gas heating.
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Upgrading the electrical setup (breaker upgrades, 3-phase power verification).
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Optimizing air distribution to eliminate cold zones during winter.
Results:
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35% reduction in monthly energy costs.
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Noticeable improvement in comfort in shipping and receiving areas.
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Estimated return on investment in less than 5 years.
10-Year Economic Comparison
| Type of Heating | Initial Cost (Installation) | Annual Energy Cost | Annual Maintenance | Available Grants | Total 10-Year Cost |
|---|---|---|---|---|---|
| Natural Gas | $25,000 | $9,000 | $800 | $0 to $1,000 | ~ $118,000 |
| Electric (Central Heat Pump) | $20,000 | $6,000 | $400 | $4,000 to $7,000 | ~ $74,000 |
Estimated data for an 8,000 sq ft business in Montréal, based on 2025 energy rates.
Key Factors to Consider When Choosing
Size and Type of Building
A poorly insulated warehouse with high ceilings will benefit more from natural gas heating. On the other hand, renovated offices or a street-level shop in Longueuil will take full advantage of a high-efficiency central heat pump.
Usage Frequency
Buildings in constant use (7 days/week) justify a more stable and powerful system like gas. Those with variable occupancy can benefit from the intermittent savings offered by programmable electric systems.
Environmental Goals and Grants
Companies looking to reduce their environmental footprint will be better served by electric or hybrid systems. Numerous grants support the installation of high-efficiency energy systems – a decisive factor for SMEs in Montréal aiming to improve their ESG performance.
AirGreen’s Recommendations for Greater Montréal
At AirGreen, we believe in a personalized and practical approach. There is no one-size-fits-all solution. Our team assesses each commercial project by considering:
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Your current and future energy costs.
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The specific characteristics of your building.
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Your sustainability goals.
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Your eligibility for support programs.
We work with the best HVAC brands on the market, including Bosch, Goodman, Fujitsu, Lennox, Haxxair, to deliver turnkey solutions that are durable and cost-effective. Every installation comes with detailed advice on maintenance, grant options, and future upgrades.
Trust AirGreen for Your Commercial Heating Needs
Debating between a natural gas or electric system for your business in Montréal, Laval, Longueuil, on the North Shore or South Shore? Reach out to our experts for a detailed analysis, a free quote, and customized solutions.