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Why use a cold climate air source heat pump?

A heat pump uses the energy that is already in the environment and can be used for heating or cooling purposes.

It extracts heat from the outside and projects it inside, even in winter!

Learn more...

Is your home heated by oil? Is your household at or below the median household after-tax income?

Canadian homeowners who answer “yes” may qualify to receive an upfront payment of up to $10,000 under the Oil to Heat Pump Affordability Program to switch from oil heating to new, energy efficient heat pumps.

The Oil to Heat Pump Affordability Program helps Canadian homeowners who are currently heating their homes with oil to transition to electric cold climate air source heat pumps. Making the switch can help you save thousands of dollars on your heating bills every year and help reduce greenhouse gas emissions.

What is available through the Program

Up to $10,000

For the purchase and installation of eligible cold climate air source heat pump systems, and any of the following associated eligible measures related to its installation:

  • Necessary electrical and mechanical upgrades to your home for the new cold climate air source heat pump
  • The safe removal of your oil tank.
  • Installation of a back-up electric heating system (as required).
  • Switching over other oil-using household systems, such as a hot water heater (where necessary).

Upfront payment:

Following the approval of your application, you will receive a cheque. In most cases this means you will receive your funds in advance of having to pay for any of the related costs.

  • The funding can be combined with additional financial assistance from other existing federal, provincial, territorial, and utility programs.

This information is for applicants residing in: Alberta, British Columbia, Manitoba, Northwest Territories, New Brunswick, Nunavut, Ontario, Quebec, Saskatchewan, Yukon.

Note: Residents of the following provinces need to apply through their provincial programs.

Newfoundland and Labrador
Nova Scotia
Prince Edward Island

What you need to know:

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Do I need a home energy evaluation?

No. A pre-retrofit EnerGuide home energy evaluation is not required for the Oil to Heat Pump Affordability Program.

Does my property qualify?

Find out if your property qualifies by reviewing the eligible property types list.

What are the eligibility criteria?

Visit the eligibility criteria page for details before you apply.

What will I need to apply?

  • Proof of primary residence
  • Proof of home ownership
  • Heating oil fuel bills or invoices
  • Quote(s) from your selected contractor(s)
  • Your Social Insurance Number

Do I have to remove my existing oil tank to qualify for the grant?

The Oil to Heat Pump Affordability program provides grant funding to help homeowners make the transition from oil heat to electric heat pumps.

While the program does not require the removal of your oil tank, the cost to remove it is an eligible cost.

Note: Many jurisdictions require the removal of an oil tank that is no longer in use. It is your responsibility to ensure that all relevant regulations are adhered to. If you are planning to decommission or remove an oil tank, it is strongly recommended that you verify your plans with your home insurance provider and your local authority/municipal regulator before you start the work to ensure full compliance with local regulations.

Be wary of high-pressure sales tactics that claim to have ENERGY STAR® or Natural Resources Canada (NRCan) backing.

NRCan has not approved any third parties to make unsolicited contact with homeowners to register or participate in the Oil to Heat Pump Affordability Program. The Government of Canada, NRCan and its family of brands (ENERGY STAR, EnerGuide) never solicit over the telephone, or by email or go door-to-door asking to enter Canadians’ homes to inspect, sell, or rent heating and cooling products. EnerGuide home energy evaluations are performed by licensed service organizations only at the request of homeowners. Learn how to recognize energy scams.

Resources for applicants

Need a loan for your other retrofits?

The Canada Greener Homes Loan is an interest-free loan of up to $40,000 with a repayment term of 10 years, open to homeowners who have an active application (at the pre-retrofit stage) with the Canada Greener Homes Grant.

Learn more about how to apply for the Canada Greener Homes Loan

Contact us

Business hours
Monday to Friday: 8:00 am to 8:00 pm (Eastern time)

Oil to Heat Pump Affordability Program inquiries:

Canada Greener Homes Loan inquiries

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