The Canadian government has recently launched the Oil to Heat Pump Affordability Program, aimed at assisting homeowners in transitioning from oil-based heating systems to electric cold climate air source heat pumps.
How Does the Program Work?
Eligible homeowners in Alberta, British Columbia, Manitoba, Northwest Territories, New Brunswick, Nunavut, Ontario, Quebec, Saskatchewan and Yukon can receive up to $10,000 to cover the purchase of a new heat pump, plus any of these associated costs to install one:
- Essential electrical and mechanical upgrades to your home for the new heat pump to work
- Safe removal of your oil tank
- Installing a backup electric heating system, if necessary
- If necessary, switching over other household systems that rely on oil, such as a water heater
Benefits of Electric Cold Climate Air Source Heat Pumps
A heat pump is a highly economical way to heat and cool your home with the thermal energy that is already in the environment.
Electric cold climate air source heat pumps offer several advantages over traditional oil-based heating systems.
- Energy efficiency: Heat pumps can provide up to four units of heat for every unit of electricity consumed, resulting in significant energy savings. On average, homeowners who switch from oil to cold-climate heat pumps to heat their homes could save between $1,500 and $4,700 per year on home energy bills.
- Environmental friendliness: By eliminating the use of oil, heat pumps reduce greenhouse gas emissions, helping combat climate change and improve air quality.
- Cost-effectiveness: Heat pumps can significantly lower heating costs, especially in regions where electricity rates are lower than oil prices.
Key Program Features
If you currently use oil to heat your home and your household is at or below the median after-tax income, you can take advantage of financial incentives to offset the cost of purchasing and installing a new heat pump. You can also combine the original $10,000 you receive from the Oil to Heat Pump Affordability Program with additional financial assistance from other federal, provincial, territorial and utility programs.
Additionally, the program offers technical assistance to homeowners, including guidance on choosing the right heat pump, finding qualified installers and understanding the maintenance requirements. You can access resources and educational materials to learn more about the benefits of heat pumps, energy efficiency and the overall environmental impact.
Eligibility and How to Apply
If you live in one of the eligible property types and follow these steps, you will need to provide:
- Proof of primary residence and homeownership
- Heating oil fuel bills or invoices
- Quote(s) from your selected contractor(s)
- Your Social Insurance Number
Switch to a New Heat Pump Today
Canada’s Oil to Heat Pump Affordability Program is a remarkable initiative that provides homeowners with the necessary support and incentives to transition from oil-based heating systems to electric cold climate air source heat pumps. By making this switch, homeowners can reduce their carbon footprint while benefiting from long-term cost savings. Embracing sustainable energy solutions like heat pumps is a crucial step toward achieving a greener and more environmentally friendly future for Canada.
