Feds announce additional heat pump incentives
Natural Resources Canada (NRCan) has announced another incentive to help make the cost of moving from oil for home heating to energy-efficient cold-climate heat pumps more affordable for Canadians.
The government is investing $250 million in the Oil to Heat Pump Affordability Grant (OHPA), which is in addition to the existing $2.6-billion Canada Greener Homes Initiative. The grant builds on the $250 million announced in September 2022 to help households move to heat pumps.
The grant is designed to reflect the fact that more Atlantic Canadians use oil as their primary source of heat, and focuses on low-to-median income households. The money will be delivered to eligible households before installation of the new pump.
Eligible homeowners can combine the grant with existing initiatives from federal, provincial and territorial governments and incentives from utility programs. The grant will provide up to $5,000, which would be applied to the purchase and installation of an eligible heat pump; any electrical upgrades needed; and removal of the oil tank.
According to NRCan, heat pumps are one of the best ways for homeowners to save money on energy bills and fight climate change. Heat pumps are two to three times more efficient than other electric home heating sources, meaning lower energy bills for homeowners, and reduced energy intake for utilities and grids. The government estimates that switching from oil to cold-climate heat pumps could save households between $1,500 and $4,700 per year.
The grant will be available in early 2023, through the Canada Greener Homes Initiative Portal.