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Oil to Heat Pump Affordability Program (Eligibility, Application & More)

31/07/2025

As a Canadian homeowner who is still relying on oil, you don’t need to put up with outdated inefficiency and pollution anymore. If you have an oil heated home, you may be able to look for a cheaper and greener alternative to heating. This guide will take you through all you need to know — what the oil to heat pump program is, how it works, how to qualify for it, and precisely how much it will save you if you make the switch.

What is the Oil to Heat Pump Affordability Program?

The oil to heat pump program is a government-sponsored program, which gives homeowners like you a chance to swap out their oil heating system for efficient, electric based heat pumps. If you enroll in this program, you may get as much as $10,000, and up to $15,000 in most provinces, towards the purchase and installation of an eligible heat pump. The program also includes related costs, from electrical updates to the proper disposal of old oil tanks, so the switchover is really comprehensive.

oil-heat-pump-affordability

The oil to heat pump affordability program was established as part of Canada’s commitment to fight climate change and assist people with the cost of energy as it continues to rise. It’s doing so by directing assistance to those households who most need the financial help. And in so doing, helping to narrow the affordability gap between traditional oil heat and high-efficiency heat pump technology.

Why Should You Switch from Oil to a Heat Pump?

Changing over from your old system to a heat pump is one of the smartest choices you can make on behalf of your wallet and the planet we occupy. Any heat pump is very efficient on electricity, producing up to 4 units of heat (mostly with minimal energy lost). If you meet eligibility criteria for the oil to heat pump affordability program, for most homes the financial barrier to this upgrade is close to none.

When you make the switch through the oil to heat pump affordability program you’re not only getting a rebate, you are really investing in:

  • Huge savings on your energy bill (as much as $4,700 per year)

  • Significantly reduced greenhouse gas emissions

  • Greater year-round comfort with better temperature control.

How the Oil to Heat Pump Affordability Program Works

The OHPA program was helpful and depending upon what area you are in you could receive different amounts, with of course many incentives included.

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How Much Can You Get?

This could vary, depending on where you live.

  • Up to $10,000 in most provinces for homeowners who meet the core criteria.

  • Up to $15,000 in provinces like Nova Scotia, Prince Edward Island, Newfoundland and Labrador, New Brunswick, Manitoba, Yukon and British Columbia, where there are also additional provincial matching funds.

  • In many participating areas, receive a $250 bonus payment to help with transition costs.

These grants are stackable, which enables you to use multiple opportunities for aid: federal, provincial, territorial (and sometimes even utility programs, if you’re lucky) to have a total net take at the end of the day.

What Costs Are Included?

Grants from the oil to heat pump affordability program may be used for:

The installation and purchase of qualifying heat pump systems (air source, cold climate, or ground source).

  • Required electrical and mechanical improvements.

  • Tank removal (optional) 

  • Backup electric heating installed, if necessary.

  • Converting other oil-burning household systems, including water heaters, if needed.

  • Putting outdoor piping loops in the ground for ground-source heat pumps.

You’ll also get the grant money before you need to pay the contractors, so you won’t have to cover the cost of materials upfront, yourself.

Heat Pump Affordability Program Eligibility

In order to be eligible for the Oil to Heat Pump Savings Program, here are the requirements:

  • Own house is located in Canada.

  • Your household income is equal to or less than the median after-tax income for your province.

  • Use oil to heat the home you live in (not a rental).

  • You can submit evidence of purchase of not less than 500 liters of heating oil within the 12 months prior to your application.

  • Your house is of an eligible type (i.e. single / semi-detached, townhouse, row house, mobile home on a foundation, low-rise multi-unit building, or permanently-moored floating home).

  • Your home is grid-connected and part of an integrated electricity grid (for example, the North American system).

The installation will be made within six months after receiving the payment. No pre-application home energy assessment is required, making the process easier — and getting your savings in your pocket sooner.

How To Apply for the Oil to Heat Pump Affordability Program

how-to-apply-for-oil-pump

Step 1: Check Your Eligibility

Verify you meet all program eligibility requirements, especially income limits and required proof of oil usage, by using the official online tool before applying.

Step 2: Gather Required Documentation

You will need:

  • Valid government ID issued to you, with your current address.

  • Documentation of your home ownership (including your most recent property tax bill).

  • Receipts or bills to show purchase of not less than 500 liters of oil for heating in the previous year.

  • At least one detailed quote from a licensed HVAC contractor for the heat pump and all costs associated with it.

  • Your Social Insurance Number (to confirm income through the Canada Revenue Agency).

  • All other provincially oriented information and documents, as applicable.

Step 3: Select a Qualified Contractor

The installed heat pump has to be an ENERGY STAR certified heat pump meeting minimum performance standards and program technical specifications. Work with your contractor to verify the heat-pump model you choose is on the eligible product list and that all components, indoors, outdoors, air handler  meet the compatibility requirements.

Step 4: Submit Your Application

You will apply through the federal government’s website or, if you live in certain provinces (British Columbia, Nova Scotia, etc.), on your provincial program portal. Upload all the required documentation. Only one homeowner, per address, may apply.

Step 5: Receive Upfront Funding

Once you are approved you will be sent a cheque in the post for the amount of the grant. You can use it to pay your contractor and for any other eligible costs. This eliminates having to come up with a great deal of cash up front before being offered reimbursement.

Step 6: Complete the Work

From the day you get your first payment, you have 6 months to finish your mission. Installation should be handled by licensed professionals, and you should follow all local rules for oil tank removal and electrical upgrades.

Step 7: Submit Proof of Completion

You will be required to show that all grant funds were expended on eligible costs and installation was completed. Your contractor will be required to complete an attestation form that your heat pump is correctly installed and heating the entire home.

Which Types of Heat Pumps Are Covered?

The affordability program for oil to heat pump addresses three primary categories:

Air Source Heat Pumps

These systems harvest energy from the outdoor air, even in cold temperatures, and bring it inside to heat your home effectively.

Cold climate air source heat pumps

These systems are built for Canada’s cold winters, supplying reliable heat at extreme outdoor temperatures.

Ground Source (Geothermal) Heat Pumps

These systems draw warmth from the earth, which stays at a relatively constant temperature all year, further increasing system efficiency. All systems must be listed on a particular qualified products list and meet energy performance requirements specified by Natural Resources Canada or by ENERGY STAR.

How Much Could You Save?

Being part of the oil to heat pump affordability program, the savings are great. The average Canadian household, according to federal estimates and participating contractors, could save between $1,500 and $4,700 a year on home heating costs, once it switches from oil to a cold-climate heat pump. These savings will be even greater if you live in an area with high oil prices or especially cold winters. Multiply these phenomenal annual savings by how many years you live at your house and factor in the upfront grant (which might cover your entire installation cost) and it’s not hard to see why the program is so sought after.

What If You Live in a Province with a Separate Program?

Some provinces offer their own version of the oil to heat pump affordability program with larger grants still. For instance, co-delivery with the federal government in Nova Scotia, PEI, Newfoundland and Labrador raises total investment $15,000 or more with provincial matching funds. A $250 supplemental grant is usually given for declaration assistance if you happen to live in a co-delivery jurisdiction and are pre-qualified.

Local programs may have slight variations in documentation requested or home energy assessments, but essential eligibility criteria are consistent. No matter where you live if you are in a co-delivery area, always begin at the federal portal, it will lead you to your province’s co-delivery platform.

Pairing Your New Heat Pump With BLUETTI Apex 300

bluetti-apex300

If you are making use of the oil to heat pump conversion benefits, it makes complete sense to couple your new heat pump with a trustworthy backup and energy management solution, and the BLUETTI Apex 300 + SolarX 4K combo does exactly that. The BLUETTI Apex 300 is capable with a base capacity of 2,764.8Wh and a continuous output of 3,840W, and up to 7,680W surge with Power Lifting Mode. That level of power output is more than enough to run just about all residential heat pump systems, as well as lighting, refrigeration and other vital appliances. 

Additionally, the system is engineered for true plug-and-play expandability, to provide many more kWhs of capacity and kW of output when connected with additional expansion batteries like the B300K, B300, or B300S. With true 120V/240V dual-voltage output, the Apex 300 can handle anything from household outlets to heavy duty power appliances such as electric water heaters, clothes dryers, and even EV charging with its built-in NEMA 14-50R outlet. Grid-Tie Improvement If you are a grid-tied house hold choosing to participate in the oil to heat pump affordability program, this alone will keep your heating system operational during power outages without the need of costly inverters or extra Rewiring.

Charging is just as advanced. With the SolarX 4K module, the device can handle solar input of up to 6,400W, and can provide full recharge in as little as 1.2 hours of strong daylight, a significant benefit for those who are off-grid or simply want to conserve energy. It also accepts 3,840W of AC charge from grid, and provides 12kW bypass mode to work as offgrid inverter/battery. Its standby power isn't overwhelming either, rated at only 20W.

Quality is top notch with an automotive quality LiFePO₄ battery capable of over 6,000 cycles to 80% capacity and a 5-year warranty. Weighing 83.78 lbs and measuring 20.67 x 12.87 x 12.6 inches, the Apex 300 is a compact, portable water softener that will fit in the corner of your home, RV, or even in a small mechanical room. For discharge, the range is from -20°C to 40°C, and for charge, 0°C to 40°C – a far more than sufficient amount of leeway for Canada’s fluctuating temperatures.

The key feature here, however, is that the BLUETTI Apex 300 comes with 0ms seamless UPS. This is great for keeping your heat pump and other essential equipment in service when the lights go out. If you’re already investing in efficiency thanks to the oil to heat pump affordability program, adding the Apex 300 + SolarX 4K gives you resiliency and reduces your long-term costs.

FAQs

What is the Oil to Heat Pump Affordability Program?

The oil to heat pump grant program is a government sponsored program to assist you (a Canadian homeowner) with the conversion from oil heating to new, energy-efficient heat pumps by providing you with funding upfront to cover the majority of, if not all, of the costs associated with converting.

Who is eligible for the programme?

You qualify for the oil-to-heat pump affordability program if you’re a Canadian homeowner with household income at, or lower, than your province’s median after-tax income, heat your primary residence with oil, and meet additional documentation and usage criteria, which includes having purchased a minimum of 500 litres of heating oil within the last 12 months.

How much could I receive?

Your province and household specifics may entitle you to $10,000 here, or $15,000 in certain provinces towards the purchase and installation of an eligible heat pump system, and many regions are adding an extra $250 in bonus payments.

What does the grant cover?

Your grant includes the cost of a qualifying heat pump system, any required electrical and plumbing upgrades to your home, the removal of your current oil tank, any additional electric heating systems installed, and the conversion process for other oil systems in your home such as water heaters — and the associated contractor costs.

How do I file the application for the oil to heat pump affordability program?

Begin by checking your eligibility on the federal site, incorporate all necessary documents (identification, receipts, quote from contractor, etc.), and apply online through the national or your provinces portal. After you’re approved, you receive your funds in a lump sum, and have up to six months to finish the project. And be sure to follow any local laws about oil tank removal and electrical updates.

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