Canada launches cold climate heat pump rebate scheme


The government of Canada has launched the Oil to Heat Pump Affordability (OHPA) rebate scheme, first announced in November 2022.

Low- and middle-income households currently heating their homes with oil can now apply to receive an upfront payment of up to CAD 10,000 ($7,413) towards purchasing and installing a new, electric, air-source cold climate heat pump. This includes up to CAD 5,000 from the Canada Greener Homes Grant (CGHG).

The rebate scheme does not specify what classifies as a cold climate heat pump, but the OHPA website says that “cold climate air source heat pumps have been designed to work in lower temperatures well below freezing and can now work down to -30 C temperatures.” The Canadian government estimates that homeowners switching from oil to cold climate heat pumps could save between CAD 1,500 and CAD 4,700 per year on energy bills.

“Electricity is the cheaper, greener, and more reliable way to heat your home,” said Seamus O’Regan, Canada’s minister of labor. “We want more people to make the switch from oil to electric heat pumps so their heating bills are lower — that’s why we’re helping to cover the cost.”

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The cost of installation services such as electrical and mechanical upgrades, removal of oil tanks, and installation of backup electric heating systems is also covered by the grant. The funding can be combined with additional financial assistance from other existing federal, provincial, territorial, and utility programs, according to the OPHA website.

Residents of Alberta, British Columbia, Manitoba, Newfoundland and Labrador, Northwest Territories, New Brunswick, Nunavut, Ontario, Quebec, Saskatchewan, and Yukon can apply to the scheme here. Residents of Nova Scotia and Prince Edward Island need to apply through their provincial programs.

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