The federal government is providing grants to help some Canadians switch from oil-fired heat pumps to electric heat pumps. Yesterday, Immigration Secretary Sean Fraser announced a $250 million Oil Heat Pump Affordability Grant that complements Canada’s existing Green Homes program. The grant will provide low- and middle-income homeowners with up to $5,000 to make the switch. Frazier told reporters the funds would cover costs such as installing a heat pump, electrical upgrades needed for the new unit, and safely removing the fuel tank. The grant will be available early in the new year and eligible homeowners will be able to combine the oil heat pump affordability subsidy with existing federal and provincial home heating assistance programs.
The OPHA grant builds on $250 million announced by Secretary of State Guilbaud in September 2022 to make home heating more affordable and reduce pollution by helping low- and middle-income households switch to electric heat pumps.
On average, homeowners who switch from liquid fuels to cold-weather heat pumps to heat their homes save between $1,500 and $4,700 a year on their energy bills — and help the environment, the FBI says. The grant will be delivered to the home before the new heat pump is installed, so the homeowner will not have to pay any upfront fees. Of course, the program will have a thorough review process to make sure it works properly.
“These are difficult times for Canadians, especially as Atlantic Canada faces higher heating bills,” Frazier said in a press release. “To continue providing immediate assistance, our federal government is cutting Canadians’ heating bills to help homeowners cover up to $5,000 in initial heating costs in federal grants to replace their oil-fired heating systems with a new heat pump By getting rid of oil-fired heating systems, homeowners can save thousands of dollars a year by cutting bills for heating, putting more money back into people’s pockets and reducing pollution and creating new jobs across the country.”
OHPA grants will be available through the Canada Green Homes Initiative in early 2023. The $2.6 billion Canada Green Homes Initiative (CGHI) is already offering eligible homeowners up to $5,000 to upgrade their homes to reduce energy use and save money. As a result, homeowners can take advantage of grants from OHPA and CGHI to replace their oil furnaces with heat pumps.
Erin Nicole Davis is a Toronto-based writer passionate about the city, its urban affairs and culture.