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Heat Pump Program PEI: Rebates, Savings & Everything You Need to Know

30/08/2025

If you live on Prince Edward Island, you’ve likely heard of the PEI heat pump program. Now with increasing energy costs and new environmental targets PEI has become a Canadian leader to get energy-efficient heat pumps into homes like yours. It is easier and more affordable than it has ever been to shift to heat pumps on PEI. With a combo of hefty rebates, the province has made available free heat pumps for those who qualify and the extra support for low- and modest-income families. You can choose from a variety of heat pump options that will not only reduce your bills but also help PEI meet its climate targets to go net-zero. No matter what your heat type is, be it oil, electric or if you’re looking for a more environmentally friendly home, the heat pump program on Prince Edward Island has something for you.

Why Choose PEI’s Heat Pumps?

A heat pump, unlike traditional heating systems such as oil furnaces or electric baseboards, operates by moving heat and is approximately two to three times more efficient than simply generating heat. That efficiency directly translates into lower electricity bills and a smaller carbon footprint.

Here’s what transitioning to the heat pump program on PEI can do for your lifestyle. Today’s heat pumps heat and cool your home no matter the temperature outside, providing year-round home comfort. Each new installation moves PEI closer to its 2040 net-zero emission targets by helping curtail its oil use and greenhouse gases.

The PEI Heat Pump Program

PEI heat pump program is a cornerstone of the province’s phase-out of fossil fuels. Working together with the federal government, PEI’s heat pump programs are making it possible for thousands of people to afford heating and cooling. 

Types of Programs Available

There are a few ways to obtain a heat pump through one of these heat pump programs:

  • Net Zero Free Heat Pump Program: Provides free heat pump installations (plus a free electric water heater) for households earning $100,000 or less.

  • Oil to Heat Pump Affordability Program (OHPA): If your home is heated with oil, you may be eligible for up to $15,000 in federal support with income eligibility varying by family size (as high as $129,000 net household income for large families).

  • Point-of-Sale Rebates: $900 off mini-split heat pumps at the time of purchase, no waiting for a cheque.

Eligibility for Heat Pump Program PEI 

Your eligibility for the heat pump program PEI, depends on your income, home size, whether your home is your primary residence, and in some cases, the amount of oil you used in the previous year.

Net Zero Free Heat Pump Program

You qualify if:

  • Your home is your primary residence (not a cottage or a seasonal property).

  • You own a detached, semi-detached, townhouse, condo, or mobile house that’s more than six months old.

  • Your annual household net income is $100,000 or less (for 1–3 person households), $122,000 or less (four person households), or $129,000 (five or more person households).

Oil to Heat Pump Affordable Program (OHPA)

To qualify or the federal program, you should:

  • Show you have consumed at least 500L of oil for home heating in the last year.

  • Have a net household income of $100,000 (1-3 people), $122,000 (4 persons) or $129,000 (5 or more people).

OHPA households can get up to $15,000 in transitioning assistance, which could pay for electrical service upgrades or tank removal.

Rebates and Point-of-Sale Discounts

For most rebates, you must:

  • Own the property and it must be your primary residence.

  • Work with a ‘Network of Excellence’ contractor from PME’s PEI.

To qualify for low-income rebates, household net revenue should not exceed $35,000 in any given year.

Current Rebates and Free Programs

  • Up to $15,000 Grant: Under the federal OHPA, homeowners can receive up to $15,000 to switch from an oil heating system to a heat pump, which includes installation, electrical upgrades, and more.

  • Standard Rebate: $900 off a ductless mini-split at the time of sale and $2,500 for a central air-source system.

  • Free Heat Pump and Water Heater: If you qualify for the free program, you don’t pay anything up front for equipment or installation.

How to Apply for the PEI’s Heat Pump Program

how-to-apply-for-pei-pump

It's that simple. To start with a heat pump program on PEI, follow these steps:

Step 1: Check Your Eligibility

You should look at how much money you make in your household, how many people are in your house and if you heat with oil (if you are applying for OHPA). Ensure your home is at least six months old, it is your primary residence and has access to the electrical grid.

Step 2: Gather Documentation

Prep your financial documents. These include your CRA Proof of Income Statement, GST Credit Notice, or Child Benefit Statement). Have the most recent electricity bill from Maritime Electric or City of Summerside and for any OHPA applicants, bring proof of previous oil purchases.

Step 3: Submit Your Application

All applications are online. If you need assistance, accessing PEI sites can help with both income verification and filling out an application. But depending on the timing of your application you might end up waiting. There are more than 10,000 applications awaiting processing, and in some cases, with high demand for the free programs.

Step 4: Home Assessment

If approved, a professional contractor will evaluate your home and identify upgrades that are needed. Only work that is approved and recommended by the assessment will be funded.

Step 5: Installation & Payment

For point-of-sale rebates, when you pay the installer, the $900 rebate is subtracted instantly. In other cases, the contractor is paid directly by the province or federal government.

Step 6: Confirmation & Follow-Up

You may need to sign a final confirmation after your system is installed for some programs. For federal grants, you will get an automatic $250 bonus payment once your participation is verified.

What Kind of Heat Pumps Does The PEI’s Heat Pump Program Include?

Heat pumps are also able to receive rebates and project assistance under the program if they meet certain criteria and are installed by certified contractors. Here’s a breakdown of eligible heat pump types:

  • Air Source Heat Pumps (ASHPs): ASHPs extract heat from the air inside a house and transfer it to the air outside.

  • Cold Climate Air Source Heat Pumps (ccASHPs): This type of heat pump is engineered to work at peak performance in chilly conditions, so they can produce heat on even the coldest days.

  • Ground Source Heat Pumps (GSHPs): These move heat to and from the indoor air and earth through pipes buried in the ground.

To verify whether a particular heat pump model is eligible, the Oil to Heat Pump Affordability Program eligibility must compare the AHRI (Air Conditioning, Heating and Refrigeration Institute) number of the unit to the program’s list of eligible products.

Standards and Contractor Requirements for Energy Efficiency

To be eligible for any rebate or free installation, the new heat pump you purchase must be installed by a Network of Excellence contractor and earn certification under the Northeast Energy Efficiency Partnerships Cold Climate Air-Source Heat Pump (NEEP ccASHP) specification. Geothermal systems must meet ENERGY STAR Most Efficient 2022. You will also need an electrical compliance certificate.

The Energy Efficiency PEI and OHPA program has clear expectations of which heat pumps qualify and what is required for the contractors who are installing it.

A heat pump must satisfy specific requirements under the OHPA program. It must also be recommended by a licensed heating ventilation and air conditioning (HVAC) technician or installer. In addition, the heat pump must also be included on an established list of approved products (e.g. Natural Resources Canada’s list).

There are several stipulations for contractors who are part of the program. They must carry liability insurance and if applicable, workman’s compensation coverage. Contractors are responsible for complying with applicable Prince Edward Island laws and regulations, including rules concerning environmental protection, health and safety. For PEI Energy Efficiency, contractors must be enrolled (approved and registered with the program) and demonstrate compliance with all applicable local rules.

Rental Properties and PEI’s Heat Pump Program

The Prince Edward Island (PEI) Oil to Heat Pump Affordability (OHPA) program offers grants to homeowners to support a conversion from oil home heating to heat pumps. Rental properties are typically not eligible for the grant unless the landlord applies. Homeowners, including renters, can recommend the program to their landlords, but the landlord must be the applicant. The program is designed largely for homeowners who are moving up from oil heating to an eligible heat pump system.

How the BLUETTI Apex300 Can Supercharge Your Switch with the PEI’s Heat Pump Program 

bluetti-apex300

If you’re ready to capitalize on heat pump program in PEI and increase your has home energy efficiency, there’s one element you don’t want to forget. Your power backup. The Best Air Source Heat Pumps PEI must have dependable, forward-compatible energy support when there’s no power or off-grid. And that’s where the BLUETTI Apex300 comes in as the perfect partner for your heat pump set up.

The BLUETTI Apex300 power station provides a 2,764.8Wh capacity, as well as a surge capacity of up to 7,680W for resistive loads such as heaters and large appliances. Integrated back-up charging means you can prioritise your most important devices or simply charge everything simultaneously. This makes it perfect for managing the start-up power of heat pumps, PEI, which is often greater than regular backup type options.


What really differentiates it, though, is its 0ms UPS switchover, so your heat pump isn’t blinking out during power failures. 

You can scale your BLUETTI Apex power station up to 58kWh/11.52kW with additional units and battery packs such as B300K/B300/B300S series. Flexible dual 120V/240V output allows you to powerwall not only your heatpump, but also unite EV chargers, dryers, water heaters and everything else with no need for adapters or rewiring. 

With super-fast solar charging (up to 6,400W) and intelligent load balancing with EnerBalance™ AI, not only will you be saving on grid power by automatically charging during off-peak times and discharging when energy costs are highest. 

Only 83.78 lbs in weight and 20.67 × 12.87 × 12.6in in size, it’s also small and light enough to be portable to move around for use in many places such as from your house to your car, and then to your boat or RV. T And with a durable LiFePO₄ battery good for 6,000+ cycles, you can expect consistent operation for more than 15 years—exactly in line with the long service life of today’s PEI heat pumps.

If you are already applying to get support for a heat pump through the PEI Program, also incorporating the BLUETTI Apex300 power station into your home system is the last step in shifting your home to efficient, resilient, intelligent energy living. Properly sized, your new heat pump will work better, work smarter, work longer — just as PEI’s clean energy roadmap is designed to.

FAQs

How many rebates can you apply for when getting several heat pumps?

Residents can apply for multiple heat pump rebates per home, but the number of rebates, and their value, will depend on the heat-pump type (mini-split, central ducted, geothermal), and whether the homeowner is eligible for support given to low income households.

Do rental properties qualify for the heat pump program?

No. Rental property buildings are not eligible to apply for rebates and for the grant unless the landlord applies.

Do you have to get an energy audit before you apply?

Yes. Eligibility for efficiency PEI Home Insulation Rebates is based on an energy audit. Your energy auditor may also help you access New Home Construction Incentives if you are building a new home.

But what if you heated your home with oil last year?

If your oil consumption at home stood at 500L or more last year but your net income falls beneath the eligibility cap, you likely qualify for up to $15,000 toward a heat pump, panels upgrades, and the removal of a tank together through the OHPA. After installation, you’ll also get a $250 one-time bonus, though it will arrive in the form of bill credits for your utility.

Time frame to have a heat pump installed through the  PEI’s heat pump program?

Wait time is 6 months. This includes the time to verify eligibility, receive grant money, and install and attest.

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