Oil to Heat Pump Affordability program
Learn about heat pumps
A heat pump is an electrically driven device that utilizes the energy that is already in the environment to heat or cool a house.
It extracts heat from the outside and projects it inside, even in winter!
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 a payment of up to $10,000, or up to $15,000 in Nova Scotia, Newfoundland and Labrador and Prince Edward Island, under the strengthened Oil to Heat Pump Affordability program to switch from oil heating to new, energy-efficient heat pumps.
The strengthened program makes it easier and more cost effective for low-to-median households to switch from oil heating to a heat pump. It helps Canadian homeowners, who are currently heating their homes with oil, transition to electric heat by installing an eligible heat pump system (air source, cold climate air source, or ground source). 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
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 heat pump system
- Installation of outdoor piping loops for ground source heat pumps
- 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 an electric water heater (where necessary).
Eligibility criteria enhancements
We have simplified the eligibility criteria to make it easier for homeowners to qualify.
Specifically:
- We have reduced the proof of purchase requirement to qualify for the program by half; from 1000 litres of oil to only 500 litres
- We have expanded the list of eligible heat pumps. Many air source and ground source heat pumps are now eligible.
- We have increased the low-to-median income threshold to account for the latest inflation, which will result in qualifying more Canadian homeowners.
Up to $5,000 additional
Available to homeowners in Nova Scotia, Newfoundland and Labrador and Prince Edward Island, where the program is co-delivered by provincial governments.
The up to $5,000 additional funding means that the federal base grant of up to $10,000 is increased to up to $15,000 for eligible homeowners residing in a co-delivery province to help with the costs associated with switching from oil heating to an eligible heat pump system.
Co-delivery provinces
The additional up to $5,000 in funding is currently being offered in the following co-delivery provinces:
- Newfoundland and Labrador
- Nova Scotia
- Prince Edward Island
For more information and to apply, refer to your provincial program webpage.
$250 one-time incentive payment
Available to eligible homeowners residing in Nova Scotia, Newfoundland and Labrador and Prince Edward Island
A one-time payment of $250 is being offered to low-to-median-income households in co-delivery jurisdictions. To be eligible, you must have been heating your home with oil, sign up into the program and get pre-approved with your provincial/territorial program for an eligible heat pump system. Once eligibility has been verified, a cheque will be mailed within a few weeks.
Co-delivery provinces
The $250 one-time payment is currently being offered in the following co-delivery provinces:
- Newfoundland and Labrador
- Nova Scotia
- Prince Edward Island
For more information and to apply, refer to your provincial program webpage.
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 upfront payment is applicable for homeowners across Canada where the program is delivered by the federal government (not applicable in co-delivery jurisdictions). For homeowners residing in co-delivery jurisdictions, 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.
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 will need to apply through their provincial programs.
What you need to know
I'm a new applicant.
Find out if you’re eligible for the up to $10,000 grant by using the check your eligibility tool:
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.
Is my household income level eligible?
Your household income must qualify as median or below after taxes. Learn more.
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 an eligible heat pump system.
While the program does not require the removal of your oil tank, the cost to remove it is an eligible expense under the program.
Note: 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. 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
More information
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.
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:
- 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
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