Updates to the Oil to Heat Pump Affordability Program

 In Heat Pumps

Have you been searching for a way to replace your oil furnace with a new heating system?

The Federal Government has recently made an update regarding the Oil to Heat Pump Affordability Program (OHPA). While the Greener Homes Initiative has stopped accepting applications as of February 2024, it’s important to know that the Oil to Heat Pump program will continue accepting applications until its funding runs out.

The decision to close applications for the Greener Homes Initiative was due to the program successfully meeting its goals. However, there are plans to potentially replace it in the near future.

With this update, we want to emphasize the opportunity still available through the ongoing Oil to Heat Pump Affordability Program (OHPA). If you’re interested in transitioning your home to a heat pump, now is the time to take advantage of this program before it concludes.


Fast Fact: Homeowners who switch from an oil furnace to a cold-climate heat pump to heat and cool their homes could save up to an average of $2,500 per year on their home energy bills. Source: natural-resources.canada.ca

What is the Oil to Heat Pump Affordability Program?

A photo of a newly-installed heat pump next to a home.

The Oil to Heat Pump Affordability Program provides a grant of up to $10,000, covering the purchase and installation of a cold climate air-source heat pump and associated expenses, including:

  • electrical upgrades required for the new heat pump;
  • installation of a backup electric heating system (as required);
  • switching over other oil-using household systems, such as a water heater (where necessary); and
  • safe removal of an oil tank.

Upfront Payment

Following the approval of your application, you will receive a cheque. In most cases, this means you will receive your funds before having to pay for any related costs. The funding can be combined with additional financial assistance from other existing federal, provincial, territorial, and utility programs.

Eligibility for the OHPA Program

To benefit from this program, you need to meet specific criteria:

  • Household after-tax income should be at or below the national median.
  • You must provide proof that your home was heated with oil as of January 2023, demonstrated by oil fuel bills from the previous 12 months.
  • You must be both the primary resident and owner of the home.

Oil-heated households above the median income can apply for a $5,000 grant via NRCan’s Greener Homes Grant or a $40,000 loan through CMHC’s Greener Homes Loan. Click here to learn more about these initiatives. 

Heat Pumps vs. Oil Furnaces

A photo of a newly-installed heat pump next to a home.

Heat pumps offer a significant advantage over traditional oil furnaces, especially considering the emerging challenges in the oil heating industry. With a growing shortage of oil-burning technicians and manufacturers beginning to phase out oil-heating equipment, the shift towards more sustainable options is becoming increasingly practical.

Heat pumps are efficient, reducing running costs by over 50%. They also have a lower environmental impact, contributing to a smaller carbon footprint. Technological advancements have made heat pumps reliable even in colder climates, ensuring consistent warmth in Canadian homes. Here are more reasons to consider installing a heat pump.

Bryan’s Fuel is ready to help you install a new heat pump system. Our friendly, knowledgeable team is dedicated to guiding you through every step of the transition to a heat pump, ensuring a seamless and stress-free experience. Contact us today for more information.

Recent Posts

Leave a Comment

A man, woman, and two children sitting a table in their home next to a window. There is a heat pump graphic beside the photo. Call Now