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

If you answered “yes” to these questions and you’re a Canadian homeowner, you may qualify for a payment of up to $10,000 in Ontario through the enhanced Oil to Heat Pump Affordability program. This initiative aims to assist homeowners in transitioning from oil heating to modern, energy-efficient heat pumps.

The enhanced program streamlines and enhances the affordability of switching from oil heating to a heat pump for households with low-to-median incomes. It provides support for Canadian homeowners currently using oil heating to make the transition to electric heat by installing an eligible heat pump system, whether it’s an air source, cold climate air source, or ground source pump. By making this switch, homeowners can potentially save thousands of dollars annually on heating costs while also contributing to the reduction of greenhouse gas emissions.

Program Benefits

Up to $10,000:

Available to eligible homeowners nationwide for the purchase and installation of qualifying heat pump systems, including the following associated measures:

  • Necessary electrical and mechanical upgrades for the new heat pump system installation
  • Installation of outdoor piping loops for ground source heat pumps
  • Safe removal of the existing oil tank
  • Installation of a backup electric heating system if required
  • Transitioning other oil-utilizing household systems, such as water heaters where necessary
Enhanced Eligibility Criteria

We’ve simplified the eligibility criteria to streamline the qualification process, including:

  • Reducing the proof of purchase requirement by half, from 1000 liters of oil to just 500 liters
  • Expanding the list of eligible heat pumps to include many air source and ground source models
  • Adjusting the low-to-median income threshold to reflect the latest inflation rates, enabling more Canadian homeowners to qualify

Additional Funding up to $5,000:

Available to homeowners in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island, where the program is jointly administered by provincial governments.

This additional funding increases the federal base grant of up to $10,000 to a total of up to $15,000 for eligible homeowners in co-delivery provinces, assisting with the costs of transitioning from oil heating to an eligible heat pump system.

Co-Delivery Provinces

The additional funding of up to $5,000 is currently available in the following co-delivery provinces:

  • Newfoundland and Labrador
  • Nova Scotia
  • Prince Edward Island

For more details and application procedures, please visit your provincial program webpage.

$250 One-Time Incentive Payment:

Available to eligible homeowners residing in co-delivery provinces of Nova Scotia, Newfoundland and Labrador, and Prince Edward Island.

A one-time payment of $250 is provided to low-to-median-income households in co-delivery jurisdictions upon signing up for the program and getting pre-approved with their provincial/territorial program for an eligible heat pump system. Once eligibility is confirmed, a cheque will be issued within a few weeks.

Upfront Payment

Upon approval of your application, you’ll receive a cheque upfront, covering the approved funding. This arrangement ensures that you receive the funds before incurring any related costs. This upfront payment applies to homeowners across Canada where the program is administered solely by the federal government. For homeowners in co-delivery provinces, please refer to your provincial/territorial program for specific procedures.

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


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