This morning in Stellarton, NS, Sean Fraser, Minister of Immigration, Refugees and Citizenship and MP for Central Nova announced a new grant from the federal government. Its aim is to help low and medium income households switch from oil to cold-climate heat pumps.
The grant dubbed the Oil to Heat Pump Affordability (OHPA), provides households with up to $5,000 depending on income level. It can be used purchase and install cold-climate heat pumps and safely remove their existing oil tank.
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 according to the federal government.
The grant money is delivered up front as many low-to-moderate income homeowners are unable to carry upfront costs associated with the installation of heat pumps.
Canadian households may be eligible for the OHPA Grant if:
- their household has an after-tax income at or below the median household after-tax income, as defined by Statistics Canada’s Low Income Measure Threshold
- their home is oil-heated as of January 2023 (this must be demonstrated with copies of their oil fuel bills from the 12 months preceding their application); and
- they are the primary resident and owner of their home.
The OHPA Grant will be available starting in early 2023 through the Canada Greener Homes Initiative Portal.
The Canada Greener Homes Initiative already provides eligible homeowners with up to $5,000 to retrofit their home to reduce energy use and save money. Homeowners can benefit from both the OHPA and CGHI grants to replace their oil furnace with heat pumps.