Making the switch from a costly oil furnace to an efficient heat pump helps Canadians save thousands of dollars each year on their energy bills. Given that the cost of home heating oil is the highest and most volatile compared with its alternatives and continues to increase, largely due to geopolitical events, switching to a heat pump also protects households from fossil fuel price spikes outside of Canada's control - leading to even more savings. Whether it's driving down energy bills or harmful pollution, the benefits of switching to a heat pump are clear, and the Government of Canada has been bringing these benefits to Canadians through the Oil to Heat Pump Affordability program.
To make the shift to heat pumps even more affordable for even more Canadians, the Government of Canada announced the launch today of the strengthened Oil to Heat Pump Affordability program in Newfoundland and Labrador. Under the program, low-to-median-income households in Newfoundland and Labrador can now apply here to receive up to $22, 000 in funding to cover the full, average cost of switching to a heat pump - including up to $15,000 from the Government of Canada's OHPA program and another up to $7,000 from the Government of Newfoundland and Labrador and other federal funds.
In addition to these strengthened heat pump grants, successful applicants will also receive an upfront, one-time payment of $250 from the federal government. The federal government will soon be sending $250 payment cheques to the thousands of households in Newfoundland and Labrador, Nova Scotia and Prince Edward Island that signed up to receive a heat pump supported by the original OHPA program since it first launched in the spring of 2023.
The strengthened OHPA grants of up to $15,000 are available to households in jurisdictions that have stepped up or intend to, with provincial/territorial funding to further help lower-income, oil-heated households make the switch to a heat pump where the federal government has a co-delivery arrangement in place that includes provincial and territorial contributions. The federal government currently has co-delivery arrangements in place with Newfoundland and Labrador, Nova Scotia and Prince Edward Island. Additional details will be announced on the strengthened Oil to Heat Pump Affordability program with the Governments of Nova Scotia and Prince Edward Island for households in these provinces in the coming weeks.
There are oil-heated households in all provinces and territories in Canada. These households have been and will continue to be able to apply for up to $10,000 in federal OHPA funding via the national portal managed by NRCan. The Government of Canada is currently working with five of these provinces and territories to deliver new, strengthened OHPA co-delivery agreements to make heat pumps even more affordable for even more Canadians across the country. The Government of Canada is keen and remains ready to develop and finalize strengthened OHPA co-delivery agreements with all provinces and territories that wish to bring these benefits to their residents.
