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“Strengthened” Oil to Heat Pump Affordability program—up to $22,000—launches on The Rock

January 27, 2024 – The Government of Canada launched the “strengthened” Oil to Heat Pump Affordability (OHPA) program in Newfoundland & Labrador, under which low- to median-income households can apply to receive up to $22,000 in funding to help cover cost of switching to a heat pump.

The upfront average cost of purchasing and installing a heat pump system in Canada—about $18,400, notes NRCan—remains a formidable barrier to adoption.

The $22K, explains Natural Resources Canada, includes up to $15,000 from Ottawa’s OHPA program and up to $7000 from the Government of Newfoundland & Labrador (and other federal funds).

The “strengthened” OHPA grants of up to $15,000 are available to households in jurisdictions that have stepped up (or intend to) with provincial/territorial funding to further help lower-income, oil-heated households make the switch to a heat pump, and where the feds have a co-delivery arrangement in place that includes provincial and territorial contributions.

In addition to these “strengthened” heat pump grants, successful applicants will also receive an upfront, one-time payment of $250 from Ottawa. The federal government says it will be sending cheques to the households in Newfoundland & Labrador, Nova Scotia and Prince Edward Island that signed up to receive a heat pump supported by the original OHPA program (Spring 2023).

Oil-heated households in other parts of Canada are able to apply for up to $10,000 in federal OHPA funding via the national portal managed by Natural Resources Canada. Ottawa says it is working with five provinces and territories to deliver new, “strengthened” OHPA co-delivery agreements.