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Choosing the right furnace is essential for small and medium-sized businesses in Toronto. With long winters, fluctuating temperatures, and rising energy costs, business owners need heating systems that are reliable, efficient, and cost-effective. This guide explores the best furnace options for commercial spaces and how to choose the right one for your business.
Toronto’s climate requires commercial furnaces that perform reliably in extreme cold
Gas furnaces remain the most popular option for small and medium-sized businesses
Rooftop units are ideal for medium-sized commercial buildings needing heating and cooling
High-efficiency and dual-fuel systems help reduce long-term energy costs
The right furnace depends on building size, usage, and operational needs
Running a small or medium-sized business in Toronto comes with many challenges, and maintaining a comfortable indoor environment during winter is one of the most critical. Toronto experiences long, cold winters with frequent temperature swings, making dependable heating a necessity rather than a luxury. Whether you operate a retail store, office, restaurant, medical clinic, or light industrial space, your furnace directly impacts employee productivity, customer comfort, and operating costs.
Unlike residential systems, commercial furnaces must handle larger spaces, longer operating hours, and varying occupancy levels. Choosing the wrong system can lead to uneven heating, frequent breakdowns, and unexpectedly high utility bills. On the other hand, the right furnace can provide consistent warmth, reduce maintenance issues, and improve energy efficiency year after year.
This article breaks down the most common and effective furnace types for small and medium-sized businesses in Toronto. We will explore how each system works, where it performs best, and what factors business owners should consider before making an investment. By understanding your options, you can make an informed decision that supports both comfort and long-term savings.
Gas furnaces are the most widely used heating solution for small and medium-sized businesses in Toronto. They operate by burning natural gas to produce heat, which is then distributed throughout the building via ductwork. Thanks to widespread access to natural gas across the Greater Toronto Area, these systems are both practical and economical for many business owners.
One of the biggest advantages of gas furnaces is their ability to generate strong, consistent heat even during extreme cold snaps. Toronto winters regularly dip below freezing, and gas furnaces are well-suited to handle these conditions without a noticeable drop in performance. Modern high-efficiency gas furnaces can reach efficiency ratings of over 95 percent, meaning very little energy is wasted.
For small retail spaces, offices, and restaurants, gas furnaces strike an ideal balance between upfront cost and long-term savings. Installation costs are generally lower than more complex systems, and maintenance is straightforward when performed regularly. For businesses that operate long hours or rely on customer comfort, gas furnaces offer dependable performance season after season.
Rooftop units, commonly referred to as RTUs, are a popular choice for medium-sized commercial buildings such as strip plazas, medical offices, and multi-unit retail spaces. These systems combine heating and cooling into a single self-contained unit installed on the roof, freeing up valuable indoor space.
RTUs are particularly appealing for businesses that need both heating and air conditioning throughout the year. In Toronto, where summers can be humid and winters severe, having an all-in-one solution simplifies system management and maintenance. Heat is typically generated using natural gas, while cooling is provided through an integrated air conditioning component.
Another benefit of rooftop units is ease of access for maintenance and repairs. Technicians can service the system without disrupting daily business operations. For growing businesses or properties with multiple tenants, RTUs provide scalable and efficient climate control, making them a long-term investment for medium-sized commercial spaces.
Electric furnaces are less common in Toronto commercial settings but can still be a viable option for specific small business applications. These systems generate heat using electric heating elements rather than combustion, making them simpler in design and easier to install where gas lines are unavailable.
For small offices, salons, or boutique spaces with lower heating demands, electric furnaces offer quiet operation and minimal maintenance. They also eliminate concerns related to gas safety and ventilation. However, electricity rates in Ontario tend to be higher than natural gas, which can lead to increased operating costs for larger or heavily used spaces.
Because of this, electric furnaces are best suited for businesses with limited square footage, shorter operating hours, or supplemental heating needs. When used strategically, they can provide reliable comfort without the complexity of gas-powered systems.
High-efficiency condensing furnaces are an increasingly popular option for Toronto businesses focused on sustainability and long-term cost savings. These systems capture and reuse heat that would otherwise be lost through exhaust gases, significantly improving overall efficiency.
For businesses that operate extended hours or occupy larger spaces, the reduced fuel consumption can result in substantial savings over time. Condensing furnaces also produce fewer emissions, making them a smart choice for companies looking to reduce their environmental impact. In some cases, these systems may qualify for local or provincial energy-efficiency incentives.
Although the initial installation cost is higher than standard furnaces, many business owners find that the long-term reduction in utility bills and maintenance costs makes high-efficiency systems a worthwhile investment, especially in Toronto’s prolonged heating season.
Dual-fuel systems combine a gas furnace with an electric heat pump to optimize energy use throughout the year. The heat pump handles heating during milder temperatures, while the gas furnace takes over during extreme cold. This approach allows businesses to use the most efficient energy source based on outdoor conditions.
In Toronto’s variable climate, dual-fuel systems offer flexibility and improved efficiency. During fall and spring, when temperatures fluctuate, the heat pump reduces reliance on gas. When winter temperatures drop significantly, the furnace ensures consistent and powerful heating.
Dual-fuel systems are ideal for medium-sized businesses seeking advanced energy management and lower annual heating costs. While the upfront investment is higher, the combination of performance, efficiency, and adaptability makes this system increasingly attractive for commercial properties.
Selecting the right furnace for your small or medium-sized business in Toronto is a decision that affects comfort, costs, and reliability for years to come. From traditional gas furnaces to advanced dual-fuel systems, each option offers unique benefits depending on your space, usage, and energy goals.
By understanding how different furnace types perform in Toronto’s demanding climate, business owners can make informed choices that support smooth operations and long-term savings. Partnering with an experienced commercial HVAC provider ensures your system is properly sized, installed, and maintained, keeping your business warm and efficient throughout every winter season.
For most small businesses in Toronto, a high-efficiency natural gas furnace is usually the best choice. These furnaces provide strong, consistent heat even during Toronto’s long, cold winters, which is crucial for keeping employees comfortable and customers happy. They are also cost-effective because natural gas prices in Ontario are lower than electricity, making them more economical to run over time.
Smaller commercial spaces, such as boutique retail stores, offices, and small restaurants, don’t typically require oversized systems, but it’s important the furnace is correctly sized. An undersized furnace will struggle to heat the space during extreme cold, while an oversized furnace will cycle too frequently, wasting energy and shortening the system’s lifespan.
Econoair can help: We conduct a full assessment of your space, insulation, and operational needs to recommend the perfect furnace. Our team handles professional installation, ensuring maximum efficiency and long-term reliability.
Medium-sized commercial buildings, like multi-unit retail plazas, medical offices, or mid-size warehouses, often benefit from rooftop units (RTUs) or dual-fuel systems. RTUs are self-contained systems installed on the roof, combining heating and cooling in one unit. This setup saves indoor space, reduces noise, and ensures even heating across multiple rooms or floors.
Dual-fuel systems, which combine a heat pump with a gas furnace, offer flexibility. The heat pump handles mild weather efficiently, while the gas furnace provides strong heating during Toronto’s harsh winter months. This approach helps businesses reduce energy costs and emissions without sacrificing comfort.
Econoair can help: We design commercial HVAC solutions tailored to your building type and size. Our experts can recommend, install, and maintain RTUs or dual-fuel systems that maximize efficiency and performance.
The typical lifespan of a commercial furnace in Toronto is 15–25 years, depending on system type, usage, and maintenance. Gas furnaces often last longer than electric units, while high-efficiency condensing furnaces can reach the upper end of that range with proper care.
Toronto’s long winters put extra strain on commercial systems. Without regular maintenance, furnaces can experience wear and tear that shortens their lifespan. Common problems that reduce longevity include clogged filters, dirty burners, duct leaks, and worn-out components. Performing annual inspections can catch these issues before they escalate.
Econoair can help: Our commercial maintenance programs include full inspections, cleaning, and preventive repairs to keep your system operating efficiently year after year.
Deciding between repair and replacement depends on the furnace’s age, condition, and performance. If your furnace is over 15 years old, requires frequent repairs, or has rising energy bills, replacement is usually the most cost-effective choice. Newer high-efficiency systems can save thousands of dollars in energy costs and reduce downtime.
For newer furnaces with minor issues, a repair may be sufficient. However, repeatedly fixing an old system can become more expensive over time. A professional inspection can help determine if your furnace is nearing the end of its life or if a repair will extend its usability efficiently.
Econoair can help: We provide thorough evaluations, recommending whether repair or replacement is the best option. Our team offers professional installations and reliable repairs with minimal disruption to your business.
High-efficiency furnaces, which often achieve AFUE ratings of 90% or higher, are worth the investment for many businesses. They use less fuel to produce the same amount of heat, reducing energy costs over time. Additionally, they produce fewer emissions, which can help businesses meet sustainability goals or take advantage of local energy rebates.
These furnaces are especially valuable for businesses that operate long hours or occupy larger spaces. The savings on energy bills can offset the higher upfront cost within a few years. Additionally, newer high-efficiency units often come with better warranties, providing peace of mind for business owners.
Econoair can help: We install and maintain high-efficiency commercial furnaces, helping Toronto businesses lower operating costs while staying comfortable all winter.
Yes, but only if it’s properly sized, installed, and maintained. Uneven heating is often caused by an undersized furnace, poorly designed ductwork, or blocked vents. High ceilings, large windows, or poorly insulated areas can also create hot and cold spots.
A professional HVAC contractor will perform a load calculation to determine the correct furnace size and ensure the duct system distributes heat evenly. Zoning systems can also help direct warm air where it’s needed most, improving comfort throughout the building.
Econoair can help: We ensure proper sizing, ductwork design, and installation so your furnace delivers even, consistent heat throughout your commercial space.
7. How much does a commercial furnace cost in Toronto?
Commercial furnace costs vary based on system type, size, and complexity. On average:
Small commercial furnaces: $4,000–$8,000
Medium commercial systems or rooftop units: $8,000–$15,000+
Additional factors include energy efficiency, installation difficulty, ductwork upgrades, and labor. Emergency installations during winter months often cost more due to urgency. While upfront costs may seem high, investing in a reliable, efficient furnace pays off with lower energy bills and fewer repairs.
Econoair can help: We provide detailed, transparent quotes tailored to your business and budget, with no hidden fees.
The best time is spring or early fall, before the peak heating season begins. Installing off-season allows for scheduling flexibility, avoids emergency downtime during winter, and ensures your system is ready when temperatures drop.
Waiting until winter can result in rushed installations, higher costs, and potential business disruptions. Planning ahead also gives time to research rebates or incentives for high-efficiency systems.
Econoair can help: Our team coordinates installation around your business schedule, ensuring minimal disruption and peak performance when winter arrives.
Yes. Annual maintenance is essential to ensure efficiency, reliability, and safety. Maintenance tasks include cleaning or replacing filters, inspecting burners, checking ductwork for leaks, testing controls, and verifying thermostat accuracy. Neglecting maintenance can lead to higher energy costs, uneven heating, and premature equipment failure.
Many businesses choose maintenance plans to avoid unexpected breakdowns and extend the life of their furnace. Well-maintained systems also operate more efficiently, reducing environmental impact and utility costs.
Econoair can help: We offer comprehensive commercial maintenance programs tailored to your building and system type.
Toronto businesses—whether small offices, retail stores, restaurants, or medium-sized commercial spaces—need heating systems that provide consistent, reliable warmth across every area of their property. Uneven heating, cold spots, or insufficient airflow can reduce employee comfort, impact productivity, and create a poor experience for customers. These challenges often stem from aging or undersized furnaces, outdated ductwork, or systems that weren’t designed to meet the unique demands of modern commercial spaces.
At Econoair, we specialize in helping Toronto businesses select and maintain the right furnace for their specific needs. Our licensed commercial HVAC technicians perform comprehensive heat-load assessments, evaluate ductwork and airflow, and ensure your system is optimized to deliver even, efficient heating throughout your building.
We work with a wide range of commercial heating solutions, including high-efficiency gas furnaces, rooftop units (RTUs), electric furnaces, high-efficiency condensing systems, and dual-fuel setups. By assessing your building layout, operating hours, and energy goals, we help you choose the system that balances comfort, efficiency, and long-term reliability. Whether you’re upgrading an older furnace, installing a new system, or optimizing your existing setup, Econoair provides Toronto-focused solutions designed to keep your business warm, comfortable, and fully operational throughout the winter months.
Unsure what you require or what system you have? Call us!
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