Eligibility criteria for the Oil to Heat Pump Affordability program

Funding available through the program

Grant up to $10,000 for applicants across Canada

Canadian homeowners who are eligible for the Oil to Heat Pump Affordability program may receive up to $10,000 toward the costs associated with switching from oil heating to an eligible heat pump system.

Increased funding for applicants in participating provinces and territories

Available for homeowners in British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Yukon. Visit the participating provinces/territories page to learn more.

• Additional grant up to $5,000
  Where the province or territory has committed to match the additional up-to-$5,000.
• One-time incentive payment of $250

  A bonus payment to help with the costs associated with switching from oil heating to an eligible heat pump system.

Only one homeowner per home can apply. Before you apply, ensure you are eligible.

The grant payment must be used toward the purchase and installation of an eligible heat pump system (air source, cold climate air source, or ground source) and the required eligible costs associated with its installation. Natural Resources Canada would request repayment and take action to recover the funds if necessary. Please ensure that you fully read and understand the eligible expenses and mandatory technical requirements and conditions.

Eligibility criteria

You are eligible for the Oil to Heat Pump Affordability program if:

• your household income is median or below, after taxes
  Check if your income level is eligible
• your home is an eligible property type
  Check if your house is an eligible property type
• you are a primary resident and owner of your home
• you heat your home with oil
• you have recent receipts for the purchase of at least 500 litres of heating oil to heat your home in the past 12 months leading up to the time of application
• you can complete the work within 6 months of receiving the upfront payment
• your home is connected to an integrated electricity grid (for example, the North American electricity grid)

Important: Applicants must ensure that they meet all the program’s eligibility requirements to be eligible for funding. This includes complying with the mandatory technical criteria and conditions, and completing an attestation form. Continue reading this page for more information.

Before you apply, use the Check your eligibility tool to find out if you are eligible for the grant.

Check your eligibility

What will I need to apply for the Oil to Heat Pump Affordability program?

Requirements	More information
Proof of primary residence	Provide a valid government-issued identification with your current name and address, such as a driver’s licence. Your identification must match the name and address on your application. Make sure your current address is up to date on your identification and application. If we must follow up for additional information, this will delay your grant.
Proof of home ownership	Upload your most recent property tax bill. The name and address on the bill must match the name and address on the application. If we must follow up for additional information, this will delay your grant.
Heating oil proof of purchase	Provide proof of purchasing at least 500 litres of heating oil to heat your home in the 12 months leading up to the time of application, such as receipts, fuel bills or invoices. If we must follow up for additional information, this will delay your grant. Heating fuels that are ineligible for this program include natural gas, propane, coal and wood. To be eligible for this program, you must be heating your home with oil (and make the switch to an eligible heat pump).
Quote(s) from your selected contractor(s)	Submit all the relevant quotes from each contractor you intend to hire and who will be involved in the transition to your new heat pump system. You need to do this when you apply because your grant amount will be based on this information and only one grant payment will be issued per household. If additional costs are required to complete your heat pump installation, provide at least one quote for each eligible expense. Quotes for the additional eligible costs (if needed) can include: upgrade of the electrical panel oil tank removal installation of an electric supplemental heating system (for example, electric furnace, baseboard heater, or boiler, etc.) installation of outdoor piping loops for ground source heat pumps installation of a new electric water heater In all cases, ensure the quote(s) from your selected contractor(s) includes the following details: applicant’s name and address a description of the work that will be undertaken, including the make and model of equipment (indoor and outdoor units and furnace where applicable), and the number of heat pumps installed the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number(s) for each of the eligible heat pump(s) you intend to have installed; the brand name, and the model numbers of the indoor and outdoor units - must be included on the quote(s) for the heat pump(s) amount to be paid Manitoba applicants: You must work with a registered contractor from the pre-selected list to be eligible. Refer to the working with a registered contractor section on the OHPA Manitoba page for more information. Applicants residing in other provinces and territories: Learn the steps to take and questions to ask when hiring a contractor. (You will be taken to an external website, CMHC).
Mandatory requirements for electric heat pump systems	Confirm the recommended heat pump meets the mandatory conditions for this program. Work with your contractor to ensure that: The recommended heat pump is eligible. This means that you can find it on one of the eligible products searchable lists; (refer to tips to search the eligible product lists) The heat pump meets all mandatory technical requirements and conditions The eligible heat pump is sized and capable of distributing heat to your entire home All the work can be completed within 6 months of receiving your grant payment Your contractor agrees to complete this attestation form (PDF, 65 KB) after the heat pump is installed. Additionally, for ground source heat pumps, your contractor must confirm that the system complies with the following technical standard: CSA C448 standard (latest version) – Design and installation of ground source heat pump systems All equipment is purchased in Canada. Online purchases are only eligible if they are ordered from a distributor located in Canada Manitoba applicants: You must work with a registered contractor from the pre-selected list to be eligible. Refer to the working with a registered contractor section on the OHPA Manitoba page for more information.
Social insurance number	Provide your social insurance number, which will be used to verify with the Canada Revenue Agency that your household income is considered “median or below.” Check if your income level is eligible.
Follow oil tank regulations	If you are planning to decommission or remove an oil tank, it is strongly recommended that you verify your plans with your home insurance provider and your local authority (for example, municipal regulator) before you start the work to ensure full compliance with local regulations. Your province or territory may require the removal of an oil tank that is no longer in use. It is your responsibility to verify and adhere to all relevant regulations. While the Oil to Heat Pump Affordability program does not require the removal of your oil tank, the removal of your oil tank is an eligible expense.

Learn more about the application process

Eligible product lists

Your new heat pump(s) must be on one of the following lists:

• Air Source Heat Pump and Cold Climate Air Source Heat Pumps
• Ground Source Heat Pumps
• Cold Climate Air Source Heat Pumps - New Brunswick and Nova Scotia
• Cold Climate Air Source Heat Pumps - Manitoba and Yukon
• Air Source Heat Pumps and Cold Climate Air Source Heat Pumps - British Columbia only

Tips to search the eligible product list

To confirm the eligibility of a specific heat pump system you’re considering purchasing:

1. Ask your mechanical system contractor to include the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number, the brand name, and the model numbers of the indoor and outdoor units in their quote (and corresponding air handler or furnace, where applicable).
2. Click on the applicable eligible product link (from the lists above) and enter the AHRI number in the HRI/Verification reference” field near the bottom of the page.
3. Select the link included under the Brand column to get to all the details of the heat pump as part of the AHRI number search.
4. When you review the search results, verify that the brand name and model numbers of the indoor and outdoor units (and corresponding air handler or furnace, where applicable) exactly match the information provided by your mechanical system contractor.

For additional assistance, contact us at OHPA-CAMT@nrcan-rncan.gc.ca.

Mandatory technical requirements and conditions

Your selected eligible heat pump(s) must meet the following technical criteria and conditions:

All components of the electric heat pump system (outdoor and indoor units and corresponding air handler or furnace, where applicable) must be compatible and listed together as an eligible product.

1. Use the Air-Conditioning, Heating and Refrigeration Institute (AHRI) number, the brand name, and the model numbers of the indoor and outdoor units provided by the mechanical contractor to confirm that your heat pump is included on one of the eligible product lists. Note that both indoor and outdoor units (and corresponding air handler or furnace, if applicable) must be listed under the same AHRI number.

   “Coils only” heat pump systems technical criteria

   “Coils Only” heat pump systems are eligible only when paired with a new electric furnace. Combinations of gas and oil furnaces are ineligible.

   For a limited number of centrally ducted heat pumps, known as “Coils Only” systems, the inside and outside units can be paired with new electric furnaces. These systems have their inside and outside units listed with their own AHRI number under the AHRI classification HRCU-A-C. The search result on the Eligible Product Lists will show model numbers for the inside and outside units, while the furnace field will say “Coils Only.”

   For a “Coils Only” heat pump system (for example, systems listed under the AHRI classification HRCU-A-C), steps must be taken to ensure their heating and cooling performance. Homeowners must work with their mechanical system contractors to understand the implications of operating this system with the selected furnace and thermostat. This is important as custom combinations of “Coils Only,” without pairing it with appropriate furnaces and controls, can limit the benefits of the heat pump system, potentially reducing the energy efficiency and home comfort.

   Note: When considering “Coils Only” products to ensure optimum performance and savings, it is strongly recommended that:

   • the furnace has a blower with an Electronically Commutated Motor (ECM) or variable speed
   • the furnace controls allow the thermostat to work properly with the heat pump system
   • the thermostat must be compatible with both the heat pump and the furnace
   • the rated airflow of the furnace and the heat pump are similar

2. Performance requirements
   Heat pumps included in the eligibility list must meet the following performance requirements:

   ENERGY STAR air source heat pump products (ASHP)

   • ENERGY STAR version 6.1 certified
   • HSPF2 Region V ≥ 6.6 AND SEER2 ≥ 15.2 (Systems with HSPF Region IV ≥ 10 are no longer being added to the eligible product lists. Systems already listed with HSPF Region IV ≥ 10 will continue to be eligible until June 1, 2025.)

   Cold climate air source heat pump products (ccASHP)

   • HSPF2 Region V ≥6.6 AND SEER2 ≥ 15.2 (Systems with HSPF Region IV ≥10 are no longer being added to the eligible product lists. Systems already listed with HSPF Region IV ≥ 10 will continue to be eligible until June 1, 2025.)
   • have a capacity maintenance (Max -15°C [5°F]/Rated 8.3°C [47°F]) ≥70%
   • have a coefficient of performance ≥1.8 at -15°C (5°F) at maximum capacity operation
   • have a variable capacity compressor with 3 or more distinct operating speeds or continuously variable speed

   Ground source heat pump products (GSHP)

   • Must meet Canada’s Energy Efficiency Regulations: Energy Efficiency Regulations – technical specifications
3. Installation: It must be installed by a licensed and trained professional. Before accepting the quote, it is highly recommended that you obtain proof of their licence to install equipment in your province or territory (PDF, 116 KB).

4. Heat distribution: The Oil to Heat Pump Affordability program requires that the eligible heat pump system be capable of distributing heat throughout the entire conditioned space in the house, including the basements where the distance from the top of the floor slab to the bottom of the ceiling joist is 1.8 m or more. This applies regardless of whether the eligible heat pump system is a central ducted, mini- or multi-split ducted or ductless system.

   For a typical house, this usually requires a minimum of one warm air supply outlet or indoor head per floor, including each level of a split-level, mezzanine level, etc., of each dwelling unit in the building. In some instances, more than one warm air supply outlet and/or indoor head per floor may be required to ensure heat distribution to the entire home or building.

   The mechanical system contractor is responsible for sizing, recommending and installing the new eligible heat pump system based on the contractor's heating load calculations.^{Footnote 1}

5. Attestation form for contractors, for air source and ground source heat pumps: It is mandatory under the Oil to Heat Pump Affordability program that you have your mechanical system contractor complete and sign this attestation form (PDF, 65 KB), after the heat pump has been installed, confirming that the heat pump is capable of distributing heat throughout the entire house.

   For ground source heat pumps, your contractor must also confirm that the design and installation has been completed according to the following technical standard: CSA C448 Standard (latest version) - Design and installation of ground source heat pump systems.