Eligibility criteria for the Oil to Heat Pump Affordability program
Only one homeowner per home can apply. Before you apply, ensure you qualify:
- your household income must qualify as median or below, after taxes defined by Statistics Canada (varies by province)
- 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 1,000 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 are able to 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)
What will I need to apply?
|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||
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||
Must show proof of purchasing at least 1,000 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 when you apply, because your grant amount will be based on this information and only one grant payment will be issued per household.
Provide a minimum of 1 quote for each eligible measure (for example, purchase and installation of eligible cold climate air source heat pump(s), upgrading electrical panel, oil tank removal, installation of baseboard heating as back-up system and possible installation of a new electric water heater).
Hybrid cold climate heat pump systems (central ducted heat pumps paired with an oil, gas or propane-fired furnace) are not eligible under this program.
Ensure the contractor includes the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number with the quote(s) for each selected cold-climate air source heat pump(s).
Strongly Recommended: Confirm the recommended heat pump meets the mandatory conditions for this program.
Work with your contractor to ensure that:
|Social Insurance Number||
You will be asked to 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 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 ensure that all relevant regulations are adhered to.
While Oil to Heat Pump Affordability program does not require the removal of your oil tank, the removal of your oil tank is an eligible cost.
The upfront grant payment must be used towards the purchase and installation of an eligible cold climate air source heat pump and the program eligible measures. Natural Resources Canada would request repayment and take action to recover the funds if necessary. Please ensure that you fully read and understand the eligible measures, technical criteria and conditions.
Your selected cold climate air source heat pump must meet the following technical criteria and conditions:
Eligible product lists: Your new cold climate air source heat pump(s) must be on the eligible product searchable list: Cold Climate Air Source Heat Pumps - Oil to Heat Pump Affordability program. All components of a heat pump system (outdoor and indoor units and corresponding air handler 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 cold climate air source heat pump is included on the list. Note that both indoor and outdoor units must be listed under the same AHRI number.
“Coils Only” Systems (i.e., systems listed under the AHRI classification HRCU-A-C) are eligible only when paired with an 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 electric furnaces that are already installed in homes. 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, 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 their existing 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
Tips to search the eligible product list
To confirm the eligibility of a specific system:
- Ask your mechanical system contractor to include the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number, the brand name, and the model numbers of the indoor and outdoor units in their quote.
- Enter the AHRI number in the “AHRI/Verification reference” field near the bottom of the search page.
- When you review the search results, verify that the brand name and model numbers of the indoor and outdoor units exactly match the information provided by your mechanical system contractor.
For additional assistance, please contact us at OHPA-CAMT@nrcan-rncan.gc.ca.
- All cold climate air source heat pumps included in the eligibility list must meet the following performance requirements:
- 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
- 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).
- Heat distribution: the Oil to Heat Pump Affordability program requires that the cold-climate air source 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 higher. This applies regardless of whether the heat pump system is a central ducted, mini- or multi-split ducted or ductless system.
For a typical house, this usually requires a minimum of one warm air supply outlet or indoor head per floor, including each level of a split-level, mezzanine level, etc., of each dwelling unit in the building. In some instances, more than one warm air supply outlet and/or indoor head per floor may be required to ensure heat distribution to the entire home or building.
The mechanical system contractor is responsible for sizing, recommending and installing the new cold climate air source heat pump system based on the contractor's heating load calculations. Footnote 1
- Attestation Form: It is mandatory under OHPA that you have your mechanical system contractor sign an attestation form (PDF, 135 kb) confirming that the cold climate air source heat pump is capable of distributing heat throughout the entire house.
- Purchase location: All equipment must be purchased in Canada. Online purchases are only eligible if they are ordered from a distributor located in Canada.
Resources for applicants
Other financial incentives
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.
Monday to Friday: 8:00 am to 8:00 pm (Eastern time)
Oil to Heat Pump Affordability program inquiries:
- Tel: 1-833-674-8282
- TTY: 1-800-465-7735
- Email: OHPA-CAMT@nrcan-rncan.gc.ca
Canada Greener Homes Loan inquiries
- Tel: 1-866-292-9517
- Email: Questions@cghli.ca
- Date modified: