Eligibility criteria for the Oil to Heat Pump Affordability program

• Grant up to $10,000
  For homeowners across Canada, regardless of the province or territory
• Additional grant up to $5,000
  For homeowners in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island
• One-time incentive payment of $250
  For homeowners in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island

Grant up to $10,000 for applicants across Canada

Canadian homeowners who are eligible for the Oil to Heat Pump Affordability program may receive up to $10,000 toward the costs associated with switching to an eligible heat pump system. Homeowners in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island may also be eligible for additional grant amounts.

Only one homeowner per home can apply. Before you apply, ensure you are eligible.

Eligibility criteria

You are eligible for the Oil to Heat Pump Affordability program if:

• your household income must qualify as median or below, after taxes
  Check if your income level is eligible
• your home is an eligible property type
• you are a primary resident and owner of your home
• you heat your home with oil
• you have recent receipts for the purchase of at least 500 litres of heating oil to heat your home in the past 12 months leading up to the time of application
• you have not already received money for a heat pump as part of the Canada Greener Homes Grant or Loan
• you can complete the work within 6 months of receiving the upfront payment
• your home is connected to a North American electricity grid (Off-grid houses are not eligible)

Before you apply, use the Check your eligibility tool to find out if you are eligible for the up to $10,000 grant. Homeowners residing in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island will be directed to their provincial program.

Check your eligibility

What will I need to apply for the Oil to Heat Pump Affordability program?

Requirements	More information
Proof of primary residence	Provide a valid government-issued identification with your current name and address, such as a driver’s licence. Your identification must match the name and address on your application. Make sure your current address is up to date on your identification and application. If we have to follow up for additional information, this will delay your grant.
Proof of home ownership	Upload your most recent property tax bill. The name and address on the bill must match the name and address on the application. If we have to follow up for additional information, this will delay your grant.
Heating oil proof of purchase	Provide proof of purchasing at least 500 litres of heating oil to heat your home in the 12 months leading up to the time of application, such as receipts, fuel bills or invoices. If we have to follow-up for additional information, this will delay your grant. Not eligible: for this program, heating oil does not include natural gas, propane, or coal.
Quote(s) from your selected contractor(s)	Submit all the relevant quotes from each contractor you intend to hire. You need to do this when you apply because your grant amount will be based on this information and only one grant payment will be issued per household. Provide at least one quote for each eligible measure. For example, an eligible measure can be the purchase and installation of: eligible heat pump(s) upgrade of the electrical panel oil tank removal installation of baseboard heating as a back-up system installation of outdoor piping loops for ground source heat pumps installation of a new electric water heater Ensure the contractor includes the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number with the quote(s) for the selected eligible heat pump(s). Mandatory requirements Confirm the recommended heat pump meets the mandatory conditions for this program. Work with your contractor to ensure that: The recommended heat pump is eligible. This means that you can find it on one of the eligible products searchable lists: Air Source Heat Pumps and Cold Climate Air Source Heat Pumps Ground Source Heat Pumps Cold Climate Air Source Heat Pumps – Nova Scotia only Air Source Heat Pumps and Cold Climate Air Source Heat Pumps – British Columbia only The eligible heat pump is sized and capable of distributing heat to your entire home For ground source heat pump installations, you would need your contractor to confirm that the installation has been completed according to the CSA C448 standard (latest version) – Design and installation of ground source heat pump systems The Attestation form (PDF, 65 kb) must be completed by your contractor after the heat pump is installed All the work can be completed within 6 months of receiving your grant payment. Refer to Tips to search the eligible product list
Social insurance number	Provide your social insurance number, which will be used to verify with the Canada Revenue Agency that your household income is considered “median or below.” Check if your income level is eligible.
Strongly recommended	Check with your home insurance provider and your local authority/municipal regulator regarding the decommissioning and safe removal of oil tanks before starting any work to ensure full compliance with all local regulations. Many jurisdictions require the removal of an oil tank that is no longer in use. It is your responsibility to adhere to all relevant regulations. While the Oil to Heat Pump Affordability program does not require the removal of your oil tank, the removal of your oil tank is an eligible expense.

Learn more about the application process

Your selected eligible cold climate air source heat pump must meet the following technical criteria and conditions

All components of a heat pump system (outdoor and indoor units and corresponding air handler or furnace, where applicable) must be compatible and listed together as an eligible product. Use the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number and make and model of the indoor and outdoor units provided by the mechanical contractor to confirm that your heat pump(s) are included on one of the eligible product lists (air source and cold climate air source or ground source). Note that both indoor and outdoor units must be listed under the same AHRI number.

“Coils Only” systems are eligible only when paired with a new electric furnace.

For a limited number of centrally ducted heat pumps, known as “Coils Only” systems, the inside and outside units can be paired with new electric furnaces. These systems have their inside and outside units listed with their own AHRI number under the AHRI classification HRCU-A-C. The search result on the Eligible Product List will show model numbers for the inside and outside units, while the furnace field will say “Coils Only.”

For a “Coils Only” heat pump system (for example, systems listed under the AHRI classification HRCU-A-C), steps must be taken to ensure their heating and cooling performance. Homeowners must work with their mechanical system contractors to understand the implications of operating this system with the selected furnace and thermostat. This is important as custom combinations of “Coils Only,” without pairing it with appropriate furnaces and controls, can limit the benefits of the heat pump system, potentially reducing the energy efficiency and home comfort.

When considering “Coils Only” products to ensure optimum performance and savings, it is strongly recommended that:

• the furnace has a blower with an Electronically Commutated Motor (ECM) or variable speed
• the furnace controls allow the thermostat to work properly with the heat pump system
• the thermostat must be compatible with both the heat pump and the furnace
• the rated airflow of the furnace and the heat pump are similar

Eligible product list

Your new heat pump(s) must be on one of the eligible product searchable lists:

• Air Source Heat Pump and Cold Climate Air Source Heat Pumps
• Ground Source Heat Pumps
• Cold Climate Air Source Heat Pumps – Nova Scotia only
• Air Source Heat Pumps and Cold Climate Air Source Heat Pumps - British Columbia only

Performance requirements

1. Heat pumps included in the eligibility list must meet the following performance requirements:

   ENERGY STAR air source heat pump products (ASHP)

   • ENERGY STAR version 6.1 certified
   • HSPF2 Region V ≥ 6.6 AND SEER2 ≥ 15.2 (Systems with HSPF Region IV ≥ 10 are no longer being added to the eligible product lists. Systems already listed with HSPF Region IV ≥ 10 will continue to be eligible until June 1, 2025.)

   Cold climate air source heat pump products (ccASHP)

   • HSPF2 Region V ≥6.6 AND SEER2 ≥ 15.2 (Systems with HSPF Region IV ≥10 are no longer being added to the eligible product lists. Systems already listed with HSPF Region IV ≥ 10 will continue to be eligible until June 1, 2025.)
   • have a capacity maintenance (Max -15°C [5°F]/Rated 8.3°C [47°F]) ≥70%
   • have a coefficient of performance ≥1.8 at -15°C (5°F) at maximum capacity operation
   • have a variable capacity compressor with 3 or more distinct operating speeds or continuously variable speed

Ground source heat pump products (GSHP)

Must meet Canada’s Energy Efficiency Regulations: Energy Efficiency Regulations – technical specifications

Installation: It must be installed by a licensed and trained professional. Before accepting the quote, it is highly recommended that you obtain proof of their licence to install equipment in your province or territory (PDF, 116 KB).

2. Heat distribution:  The Oil to Heat Pump Affordability program requires that the eligible heat pump system be capable of distributing heat throughout the entire conditioned space in the house, including the basements where the distance from the top of the floor slab to the bottom of the ceiling joist is 1.8 m or more. This applies regardless of whether the eligible heat pump system is a central ducted, mini- or multi-split ducted or ductless system.

3. Attestation form for contractors and ground source heat pumps: It is mandatory under the Oil to Heat Pump Affordability program that you have your mechanical system contractor sign an attestation form (PDF, 65 kb) confirming that the heat pump is capable of distributing heat throughout the entire house. For ground source heat pump installations, it is mandatory that you have your contractor attest that the installation has been completed according to the CSA C448 Standard (latest version) - Design and installation of ground source heat pump systems.
4. Purchase location: All equipment must be purchased in Canada. Online purchases are only eligible if they are ordered from a distributor located in Canada.