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Oil to Heat Pump Affordability Grant

Make the upgrade

Improve your home’s efficiency by upgrading to a heat pump

Status: The program is currently being finalized. Applications will open in early 2023.

We already know that making the switch from oil heating to a heat pump is beneficial, both environmentally and economically. The Oil to Heat Pump Affordability Grant will help Canadians who are currently heating their homes with oil make the transition to affordable electric cold-climate heat pumps.

Grant of up to $5,000

To cover costs for changing your oil heating to a heat pump including for:

  • the purchase and installation of an eligible cold climate air source heat pump
  • electrical upgrades required for the new heat pump
  • safe removal of the oil tank

Your grant money will be available before the installation of your new heat pump.

Be ready to apply

Make sure that you’ve got all the following to prepare for this grant when it becomes available:

  • your household qualifies as median income and below, after tax
  • your home is heated by oil as of January 2023
  • you are the primary resident and owner of your home (make sure that your current address is up to date on your government issued ID)
  • you’ve got copies of your oil fuel bills from the last 12 months
  • you have not already received money for a heat pump as part of the Canada Greener Homes Grant

Eligible homeowners will be able to combine the grant with funding from existing federal, provincial, territorial and utility programs. More program eligibility requirements will be made available in the coming months.

Do I need a home energy evaluation for this new grant?

Having oil as the source of heating for your home is the main criteria for this grant. That’s why we won’t need a home energy evaluation this time.

We will still need other documentation from you though to help us along this process.

What’s so great about a heat pump?

Heat pumps are a proven and reliable technology in Canada, capable of providing year-round comfort control for your home by:

  • heating it in the winter
  • cooling it in the summer
  • in some cases, heating hot water for your home

On average, homeowners who switch from oil to cold-climate heat pumps to heat their homes would save between $1,500 and $4,700 per year on home energy bills.

Making the switch can lead to hundreds of dollars per month in energy savings.

Learn more about heat pumps


Canada’s natural resources are among the most diversified in the world. But the road to a low-carbon future has its challenges.

Here’s the situation: Nearly two thirds of the energy consumed in Canadian homes is used for heating and cooling. This represents a basic need for Canadians, especially given our cold winters and hot summers.

To reduce energy consumption and greenhouse gas emissions, we must rethink traditional methods of heating and cooling.

But what can be done?

Every day, scientists and engineers at Natural Resources Canada’s CanmetENERGY research centres are working to find low-cost, clean-energy solutions to this issue.

Here’s how.

Today, air-source heat pumps represent one of the most promising technologies for heating and cooling our homes. They allow for a significant reduction in our energy consumption.

A heat pump extracts heat from the cold outside air and transfers it inside our home. To this end, a compressor inside the device uses electricity to increase the temperature of the heat extracted from the outside air. The heat pump can also provide cooling by transferring warm indoor air to the outside. The energy provided by the outside air is free: consumers only pay for the electricity used by the compressor.

Canada’s cold climate is a challenge: when the temperature drops, heat pumps have trouble transferring heat from outdoors to indoors in order to warm our homes. That is why our researchers are hard at work trying to adapt air-source heat pumps to our Canadian climate.

Heat pumps are one of the many technologies that CanmetENERGY believes will help make Canada a safer, healthier place, and create a low-carbon economy.

And it’s only the beginning.

CanmetENERGY: science at the service of all Canadians.

While you wait

Heat pumps work their best when your home is also well insulated and sealed. If you haven’t already, you should consider improving your home’s insulation and air tightness, that way when your heat pump is installed it’s at its most efficient.

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