Ontario Oil to Heat Pump Rebate Program: How to Save Up to $10,000 on Your New Heat Pump
- P & P HVAC
- Jan 15
- 4 min read
Ontario Oil to Heat Pump Rebate: A Comprehensive Guide
As part of its commitment to reducing carbon emissions and promoting energy efficiency, the Canadian government is offering homeowners across Canada, including in Ontario, the chance to switch from oil heating systems to more sustainable and cost-effective heat pump systems. Through the Oil to Heat Pump Affordability (OHPA) program, eligible homeowners can receive up to $10,000 to cover the costs of purchasing and installing heat pumps. This blog post will walk you through the details of the oil to heat pump rebate program, what’s required to qualify, and how you can benefit from upfront payments to make the switch even easier.
What is the Oil to Heat Pump Affordability Program?
The OHPA program helps homeowners who are currently using oil heating systems to transition to electric heat pumps, which are more energy-efficient and environmentally friendly. Heat pumps can help you reduce your heating bills by transferring heat from the outside air or ground into your home, and they can also provide cooling in the summer months.
This program is a significant step toward reducing the carbon footprint of Canadian households, as heat pumps are a much cleaner alternative to oil heating systems. Additionally, making the switch can save you money in the long run as heat pumps are more energy-efficient than traditional oil systems.
Eligibility Criteria for the OHPA (Oil to Heat Pump Affordability) Rebate Program
The OHPA program is designed to support low-to-median income households. However, recent updates to the eligibility criteria have made it easier for more homeowners to qualify. To be eligible, you must meet the following conditions:
Home Heating System: You must currently be using oil to heat your home. This includes homes with oil furnaces, boilers, or other oil-based heating systems.
Income Criteria: Your household income must be at or below the median after-tax income for your province or territory. This threshold has been adjusted to account for inflation, making more homeowners eligible.
Oil Usage: You will need to show proof that you have purchased at least 500 litres of heating oil in the past 12 months. This requirement has been reduced from 1,000 litres, broadening the pool of eligible applicants.
Geographic Eligibility: The OHPA program is available to homeowners across Canada, but additional funding is available in participating provinces and territories. In Ontario, homeowners may receive the core funding amount, and if your province is part of the extended program, you could receive even more.
What Does the Program Cover?
The OHPA program offers substantial financial support to help cover the cost of purchasing and installing an eligible heat pump system. You can receive up to $10,000 for:
Installation of a heat pump system (including air-source and ground-source heat pumps).
Necessary electrical and mechanical upgrades to accommodate the new heat pump system.
Outdoor piping loops for ground-source heat pumps.
Removal of your oil tank, if required (this cost is also eligible for funding).
Supplemental electric heating systems, if needed to support the heat pump.
Switching out other oil-using systems, such as oil water heaters, with electric alternatives.
In addition to the core funding, homeowners in some provinces and territories, including Ontario, may receive additional financial support and even a $250 bonus to help with the transition.
How the OHPA Program Works: Upfront Payments
One of the most appealing aspects of the OHPA program is that it allows homeowners to receive an upfront payment for eligible costs, so you don't have to pay for the full cost of the installation upfront and wait for reimbursement. After your application is approved, the payment will be sent to you directly—often before the costs are due. This makes the program more accessible and less financially burdensome for eligible homeowners.
In Ontario, if you're eligible for the program, you will likely receive the funds in advance, helping to offset the installation costs right away. This reduces the financial strain of switching from an oil system to an energy-efficient heat pump system.
Increased Funding in Participating Provinces and Territories
Certain provinces and territories, including British Columbia, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Yukon, have agreements with the federal government to offer additional funding for eligible homeowners. For these regions, you could receive up to $5,000 more in funding for the installation of your heat pump system, plus an additional $250 bonus to further reduce costs.
If you live in one of these participating areas, it’s important to follow your province or territory’s specific process for applying to the OHPA program. These areas have a more streamlined application process with enhanced funding to further support your switch to a heat pump system.
How to Apply for the OHPA Program
To apply for the OHPA program, follow these steps:
Check Your Eligibility: Use the online tool to check if your household income and oil usage meet the program’s criteria.
Select a Qualified Contractor: Choose a registered contractor to install your heat pump system. Make sure they are familiar with the OHPA program and its requirements.
Apply for Funding: Once you’ve selected your contractor and are ready to install the heat pump, submit your application for funding. Ensure you have all the necessary documents, including proof of oil usage and income.
Receive Your Funds: After approval, you will receive the rebate upfront to help cover the cost of the installation.
In Ontario, this process is relatively quick, and most homeowners receive their rebate before they need to pay for the system. This is a significant benefit that makes the transition to a heat pump more affordable for homeowners.
Conclusion
The Oil to Heat Pump Affordability (OHPA) program is an excellent opportunity for eligible homeowners to reduce their reliance on oil heating and transition to more sustainable, energy-efficient heat pump systems. With up to $10,000 in funding available, including additional bonuses in certain provinces, the program helps lower the financial barrier to making this change. Whether you're in Ontario or another participating province, the OHPA program provides significant financial support to help you save money on heating and reduce your environmental impact.
If you meet the eligibility criteria, now is a great time to apply and start reaping the benefits of lower energy bills and a cleaner, greener home. Visit the OHPA program website to learn more about eligibility and start the application process today!
Comentários