If your home is heated using oil and your household income is at or below the median after-tax income, you may be eligible to receive an initial payment of up to $10,000 through the Oil to Heat Pump Affordability Program. The program is administered by Natural Resources Canada. 

The Oil to Heat Pump Affordability Program aims to support Canadian homeowners in switching from oil heating to energy-efficient heat pumps.

By making this transition, you can potentially save a significant amount of money on your annual heating expenses while also contributing to the reduction of greenhouse gas emissions. Here are 7 things you need to know about Canada’s heat pump incentive.

1) What expenses does the program cover?

• The prudent removal of your oil tank                                                                                                                                                                                  • The electrical and mechanical improvements that are required for your home to host a cold climate air source heat pump
• The creation of a back-up energy system
• The removal of other oil-based household machinery, including hot water heaters

2) How do I get paid?

Once your application has been approved, you will be issued a check. In many situations, this means that you will receive your funds prior to incurring any associated expenses.

The funding can be used alongside supplementary financial aid provided by various federal, provincial, territorial, and utility programs.

3) Is an energy assessment necessary?

The Oil to Heat Pump Affordability Program does not force you to get a pre-retrofit EnerGuide home energy evaluation.

4) What types of properties are eligible?

Most types of residential properties are eligible. Single and semi-detached homes, townhomes, row housing, and low-rise multifamily dwellings can all qualify for the Oil to Heat Pump Affordability Program. For a complete list, see here.

5) What documents and information do I need to provide?

• Proof of your main place of residence
• Proof of owning your home
• Invoices or bills for heating oil fuel
• Quotation(s) from the contractor(s) you have chosen
• Your Social Insurance Number

6) Do I have to get rid of my current oil tank?

The Oil to Heat Pump Affordability program offers grant funding to assist homeowners in transitioning from oil heat to electric heat pumps.

While the program doesn’t mandate the removal of your oil tank, the expense of removing it is an eligible cost.

It’s important to know that many jurisdictions require the removal of unused oil tanks. It is your responsibility to ensure compliance with all relevant regulations. If you plan to decommission or remove an oil tank, we strongly advise consulting your home insurance provider and local authority/regulator to ensure complete adherence to local regulations.

7) Can my income be too high to qualify?

The Oil to Heat Pump Affordability Program is available to households who are at or below the median after-tax income. To find out the median after-tax income in your province, see here.

Image Source: Brendan Haley, https://shorturl.at/bEV19