Canadian government extends heat pump grant scheme

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The Canadian government’s OHPA program, which incentivizes homeowners to switch from heating their homes with oil to a heat pump, is now available to citizens of the eastern province of Prince Edward Island.

The OPHA program offers up to CAD 15,000 ($10,914) per eligible low- to medium-income household. The funds can be used to install heat pumps, alongside additional measures such as switching to electric water heaters, supplemental electric resistance heaters, electrical upgrades, and the safe removal of oil tanks.

The program began delivery in Prince Edward Island after an agreement was signed between the federal and provincial governments. It is estimated that 5,000 grants have been issued to applicants in the area.

The federal government also has co-delivery arrangements in place for the OPHA program with Nova Scotia, Newfoundland and Labrador, and British Columbia. It said it “looks forward to co-delivering the program with other provinces and territories soon.”

As of July 5, a total of 7,403 heat pumps have been installed under the plan nationally, with 10,568 Canadian households having received upfront payments.

“Canadians should be able to save on energy bills by heating and cooling their homes more efficiently,” said Bobby Morrissey, member of parliament for Egmont, Prince Edward Island. “This is especially true in Atlantic Canada, where many are facing high energy costs … That's why this federal government is helping Canadians switch from expensive home heating oil to lower-cost and lower-emission heat pumps through the Oil to Heat Pump Affordability program. This next step in the program is a win-win: it will provide even more support for low-to-medium-income Islanders who are looking to reduce their energy bills while also reducing pollution.”

In jurisdictions where OHPA agreements are not yet in place, oil-heated households can still apply for up to CAD 10,000 in federal funding to make the switch to heat pumps. Government estimates suggest that homeowners who switch from an oil furnace to a cold-climate heat pump could save approximately CAD 1,500 to CAD 4,500 per year on their home energy bills, depending on their province or territory.

Earlier this month, the province of British Columbia launched a rebate scheme for homeowners that install rooftop solar and battery energy storage systems, offering up to CAD 10,000.

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