The Oil to Heat Pump Affordability (OHPA) program helps Canadian homeowners, including Indigenous communities, transition from oil heating to new, energy-efficient electric heat pump systems. The program offers up to $10,000 per household.
This page provides information for applicants submitting applications for Indigenous community-scale projects involving multiple homes under the OHPA program in Alberta, Northwest Territories, Quebec, and Saskatchewan.
How it works
- The OHPA program’s Indigenous Community-Scale Application is a non-competitive continuous intake Call for Proposal. It is an open and formal process where each complete application submitted is assessed for funding consideration based on the proposed eligibility and viability of project activities, and the eligibility and capacity of the applicant to manage the project appropriately.
- Funding is not guaranteed. Applicants are strongly encouraged to apply as early as possible. Funds are allocated on a first-come, first-served rolling basis, or until all available funding has been committed.
Note:
- Individual Indigenous homeowners residing in the provinces and territories (listed above) can either choose to apply through the OHPA home page or be included as part the community-scale application.
- Due to grid limitations, homeowners in Nunavut are ineligible for the OHPA program.
How your community can benefit from the OHPA program
Canada’s cold climate means that space heating accounts for over 60% of the energy used in the average Canadian home. Making the switch to more energy-efficient heating equipment such as an eligible electric heat pump can save energy and reduce your utility bills and carbon footprint.
The OHPA program falls under the Canada Greener Homes Initiative. The program helps eligible homeowners, who are currently heating their homes with oil, make the transition to a better, more efficient option.
Available funding
Up to $10,000 per household
The funding will cover:
- direct costs for the purchase and installation of a heat pump system and its eligible measures
- the purchase and installation of an eligible heat pump
- electrical and other upgrades required for the new heat pump
- costs associated with the safe removal of the existing oil tank
- purchase and installation of an electrical back-up heating system
- conversion of other oil-fueled appliances to electric (for example, boiler or water heater)
- costs of coordinating the purchase and installation of materials, up to 10% of the total project cost
Funding amounts vary by home and are based on the eligible activities completed and the eligible expenditures submitted. For example, a homeowner that installs a Cold climate air source heat pump that costs $5,000 for the heat pump and $500 for the installation, would be eligible for $5,500, not $10,000.
Indigenous flexibilities
- Streamlined application: Register multiple homes through one funding agreement
- Multi-year funding agreements to enable phased approach, ending March 31, 2027
- Up to 10% of total project value can be applied towards the coordination of the purchase and installation of materials
- Combine Natural Resources Canada (NRCan) funding with other funding sources to cover up to 100% of the cost
- Advance payments are available based on the project’s cash flow requirements
Who can apply for funding?
- Indigenous governing bodies and organizations (for example, band councils, settlements, land claim organizations)
- Indigenous housing management bodies and other representatives
- Indigenous service delivery organizations with formal partnerships (for example, council resolution) with Indigenous governments or organizations
These applicants are eligible to register multiple homes, including homes that are not the owner’s primary residence.
Eligibility criteria
- Homes must be owned by the applicant and/or its members and occupied by an Indigenous household. Households that provide services to the Indigenous community are also eligible
- Homes must be connected to a North American electricity grid (off-grid homes are not eligible)
- Homes must be heated with oil (500 litres of oil used to heat the home over the past 12 months leading up to the application)
- Occupants from all homes registered in this project must meet the median income eligibility requirement for OHPA which is equal or less than the after-tax median income applicable to the applicant’s province or territory and individual household size
- Installation must be timely and be completed no later than the end date indicated in the agreement, with the latest end date possible being March 31, 2027
- Recipients should aim to complete installations within six (6) months of receiving an advance payment
- Homes must be an Eligible property type
- Heat pumps must be selected from NRCan’s Eligible product list and meet all OHPA eligibility requirements
Reporting Requirements
Reporting will be minimized to reduce the administrative burden on the applicant and will be subject to the tasks and key performance indicators of the project.
Key Performance Indicators
- Number of homes that installed a heat pump
- Eligible heat pump by home (AHRI number(s))
- Total costs incurred of eligible measures per home
How to apply
To apply use the email address provided below to request an application package. The package includes:
- The application guide: the applicant is responsible to thoroughly review the applicant guide and understand the OHPA program prior to applying.
- The application: the application needs to be completed in its entirety and signed by a duly authorized signing authority (a senior official from the Indigenous organization or government). The application includes:
- Applicant information and eligibility under the OHPA program.
- A description of the proposed project details and its objectives.
- Demonstration of the applicant’s capacity to manage, execute, and deliver the proposed project.
- Demonstration of project feasibility, such as:
- A plan that outlines the steps, actions, timelines, milestones and resources that will be required to successfully achieve the goals of the project.
- A quote from at least one mechanical contractor for the proposed undertakings, as an attachment to the application.
- A Home Identification Spreadsheet (HIS) to track the eligibility and other pertinent information of homes registered in the OHPA project.
- A budget with a breakdown of estimated total eligible costs, forecasted spending by fiscal year, and other sources of funding. Information on forecasting is included in the Annex.
A program officer will be available to provide guidance on the application process and answer questions, as needed.
The applicant must ensure that the application is signed by a senior official from the Indigenous organization or government for it to be considered complete.
- The application checklist: the applicant should use this itemized list to help with completing each section of the application. It is recommended to use the checklist while completing the application to ensure there is no missing information.
Information to provide in your application
Requirement |
More information |
|---|---|
Mandatory attestation of home ownership |
Provide attestation that homes registered in the project are owned by the Applicant and/or its members and are occupied by an Indigenous household or a household that provides services to the Indigenous community. |
Mandatory attestation for use of home heating oil |
Provides attestation that the homes registered in the project are heated with oil, and at least 500 litres of oil was purchased per home in the past 12 months leading to the time of application. |
Mandatory attestation of median income requirement |
Provide attestation that the after-tax income for occupants per household qualifies as median or below median, as defined by Statistics Canada (varies by province). |
Quote(s) from selected contractor(s) |
Obtain all relevant quotes from each contractor to be hired, who will be involved in the transition to the new heat pump system.
Ensure the contractor includes the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number(s) with the quote(s) for each eligible heat pump(s) you intend to have installed, the brand name, and the model numbers of the indoor and outdoor units. |
Mandatory requirements for electric heat pump systems |
Confirm the recommended heat pump meets the mandatory conditions for this program.
|
Follow oil tank regulations |
If decommissioning or removing an oil tank, it is strongly recommended that plans are verified with the home insurance provider and local authority (for example, municipal regulator) before starting the work to ensure full compliance with local regulations. |
Register homes to the project |
Submit the Home Identification Spreadsheet included as part of the application package. Indicate that the homes are connected to a North American electricity grid (off-grid homes are ineligible) and provide eligibility attestations for each registered home. |
Steps to Apply
Step 1: Submit an application
Complete all sections of the Indigenous Community-Scale Application form and attach the home identification spreadsheet, project workplan, and quote(s).
Step 2: Missing information submission (as required)
The submitted application will be reviewed by NRCan for completeness. If any information is missing, NRCan will request the missing information via email using the contact provided in your application.
Step 3: Assessment and funding decisions
The application will be assessed by NRCan for eligibility, feasibility and capacity to meet OHPA program requirements. Each project proposal will be reviewed and assessed against the mandatory criteria. During this time, NRCan may seek clarification on the budget, timelines, and other important information.
NRCan will inform Applicants about their application status in a funding decision letter. Unsuccessful project proposals will receive letters of regret and successful project proposals will receive letters of conditional approval.
Step 4: Negotiate an agreement
An agreement will be negotiated and developed with the applicant under the Canada Greener Homes Initiative. The agreement will encompass details such as:
- the terms and conditions of the agreement
- claim period and frequency of reporting and payment summary of the project
- project budget details
Flexibilities available to Indigenous applicants within the agreement may include:
- minimized performance indicator reporting
- advance payments based on cash-flow forecasting needs for a specific claim period
- ability to retain unexpended advance payments at the end of each fiscal year for use in the next fiscal year to further achieve results toward the program objectives
- language in the agreement that would allow for fewer homes to be served, up to the number of homes registered in the project, as necessary
Step 5: Review and signing of the final agreement
The draft agreement will be provided for the applicant to review before a final version is generated for signatures. The final agreement will need to be signed by a senior official from the Indigenous governing body and by NRCan.
Once an agreement is signed, project activities may commence.
Request an application
To request a copy of the Guide and Application for Indigenous Governments and Organizations for the Oil to Heat Pump Affordability Program please contact us at OHPA_Guide_CAMT@nrcan-rncan.gc.ca.