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Oil to Heat Pump Affordability program

The information on this page is for applicants residing in: Alberta, Manitoba, New Brunswick, Northwest Territories, Ontario, Quebec, Saskatchewan, Yukon.

If you reside in British Columbia, Newfoundland and Labrador, Nova Scotia, or Prince Edward Island, visit our participating provinces/territories page for information, as details vary.

Note: Due to grid requirements, homeowners in Nunavut are ineligible for the OHPA program.

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

Canadian homeowners who answer “yes” may be eligible to receive an upfront payment of up-to-$10,000 to switch from oil heating to new, energy-efficient heat pumps.

The Oil to Heat Pump Affordability (OHPA) program helps homeowners who are currently heating their homes with oil, transition to eligible electric heat pump systems. Making the switch can help you save thousands of dollars on your heating bills every year and help reduce greenhouse gas emissions.

Where can I learn about heat pumps?

There are several important considerations when operating a heat pump.

We have resources for you:

Heat pumps – Find the facts and watch the videos

Heat pumps for the OHPA program – What you need to know before and after installing an electric heat pump

Heating and cooling with a heat pump – Learn more in this in-depth booklet

Air-source heat pumps:

Ground-source heat pumps:

It’s now easier for low-to-median income households throughout Canada to apply to the OHPA program due to improvements to the eligibility criteria.

Check if your income level is eligible

Participating provinces and territories have an agreement with the federal government for delivery of the OHPA program. If you live in one of the participating provinces or territories, additional funding is available.

Learn more about the program in your participating province/territory

Eligibility criteria and enhancements

Applicants are advised to carefully consider the program’s eligibility criteria, including the mandatory technical criteria and conditions, and attestation form. All eligibility requirements must be met throughout the program to be eligible for funding. A home energy evaluation is not required to apply for the OHPA program.

Some of the eligibility criteria for the OHPA program have been adjusted to make it easier for more Canadian homeowners to participate:

  • You only need to show proof of purchasing 500 litres of heating oil in the past 12 months (reduced from 1000 litres)
  • A wider range of heat pumps are eligible, including air source and ground source heat pumps
  • The low-to-median income level has been increased to account for inflation

Find out if you meet all eligibility criteria and learn more about the program’s requirements.

Note: Some provinces and territories require the removal of your oil tank. Your province or territory may require the removal of an oil tank that is no longer in use. It is your responsibility to verify and adhere to all relevant regulations. The OHPA program does not require removal; however, the cost to remove it is an eligible expense under the program.

What is available through the program

Up to $10,000

Available to eligible homeowners across Canada for the purchase and installation of eligible heat pump systems, and any of the following associated eligible measures related to the installation:

  • • Necessary electrical and mechanical upgrades to your home for new electric heat pump system
  • Installation of outdoor piping loops for ground source heat pumps
  • The safe removal of your oil tank
  • Installation of a supplemental electric heating system (as required)
  • Switching over other oil-using household systems, such as an electric water heater (where necessary)

Upfront payment

For homeowners across Canada

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 upfront payment is applicable for homeowners throughout Canada where the program is delivered exclusively by the federal government. This includes all provinces and territories except for those on the list of participating provinces/territories. If your province or territory is listed, refer to your provincial/territorial program for its specific process.

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

All eligibility requirements must be met throughout the program to ensure a successful journey. This includes complying with the mandatory technical requirements and conditions and completing an attestation form. Refer to the eligibility criteria page for details.

Increased funding in participating provinces and territories

Available to homeowners in the provinces and territories listed

Some provinces and territories have agreements with the federal government for the delivery of the OHPA program. For eligible homeowners that live in one of the participating provinces/territories, an additional up-to-$5,000 is available where the province or territory has committed to match the increased funding.

Additionally, eligible homeowners will receive a $250 bonus payment to help with the costs associated with switching from oil heating to an eligible heat pump system.

Homeowners residing in one of the following provinces or territories should visit our participating provinces/territories page to learn more:

  • British Columbia
  • Newfoundland and Labrador
  • Nova Scotia
  • Prince Edward Island

What you need to know

Family looking for information on the web

I'm a new applicant.

Before you apply, find out if you’re eligible for the up-to-$10,000 grant by using the check your eligibility tool:

Check your eligibility

What’s the next step after confirming I’m eligible?

Read through the process steps and see what you’ll need to apply.

Learn about the program’s process

Ready to apply?

Apply for the Oil to Heat Pump Affordability program

How it works

What is the Oil to Heat Pump Affordability (OHPA) program?

Transcript

Text on screen:

Oil to Heat Pump Affordability Program

What is the Oil to Heat Pump Affordability (OPHA) Program?

Narrator: Do you heat your home with oil? If you’re a Canadian homeowner and your household income qualifies as median or below,

Text on screen: Median or below income

Narrator: you’ll be interested in this program which helps you make the switch from oil heating to heat pumps.

Text on screen: Funding is available from the Government of Canada

Narrator: The Government of Canada is providing an advance payment of up to 10 000 dollars—

Text on screen:

$10,000

Depending on your province or territory

Even up to $15,000

And a one-time payment of $250

Narrator: or even up to 15 000 dollars and a one-time payment of 250 dollars, depending on where you live—to help you with the cost of replacing your oil heating system, by purchasing and installing a new heat pump for your home.

Text on screen: What’s a heat pump?

Narrator: A heat pump is a very efficient and economical way to heat and cool your home for year-round comfort. It runs on electricity and uses the heat that is already in the environment to heat or cool your home. In cold weather, it extracts heat from the outside air and moves it inside. In hot weather it extracts the heat from inside your home to the air outside.

You might not know this, but you already have a heat pump in your home- your fridge. It keeps your food cool by using a heat pump that extracts the warm air from inside the fridge to keep the temperature cool.

Heat pumps are a proven and reliable technology and are adapted and tested for Canada’s colder climate.

Text on screen:

How could I benefit from OHPA?

Affordable transition to heat pump

Narrator: Funding offered through the OHPA program covers not only the heat pump, but also the electrical panel work and oil tank removal.

An oil-fired furnace is very costly to run. Switching to a heat pump, however, will help households save money on their monthly energy bills.

Text on screen:

Environmentally smart

CO2

Narrator: Oil furnaces generate tonnes of CO2 and other polluting particles. So, saving money on energy bills is also a smart choice for the future of the planet.

Text on screen: Ok, I’m interested What do I need to know?

Narrator: Simply go to the website Canada.ca/heat-pump-grant, check your eligibility and see how you can apply

Text on screen: For more information: Canada.ca/heat-pump-grant

Download the OHPA factsheet (PDF, 1 MB)

OHPA factsheet thumbnail

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

Other financial incentives and money saving tips

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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Accessibility
The Canada Greener Homes Initiative is committed to providing a barrier-free application process. We encourage you to advise us of any accommodations you may need. Please contact us either by email,
toll-free number or TTY and we will happily assist you.

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