Oil to Heat Pump Affordability (OHPA) Program Q&As for Front Line Service Canada Staff

About the OHPA Program  

  1. What is the Oil to Heat Pump Affordability (OHPA) program? How much can I get in grant funding? 

The new Oil to Heat Pump Affordability (OHPA) program will help low- and median-income households switch from heating with oil, to more efficient electric heat pumps.  

The OHPA program offers grants of up to $5,000 to cover the costs of changing your oil heating system to an eligible, cold climate, air source heat pump system.  

This grant can also be combined or topped up with up to an additional $5,000 from the Canada Greener Homes Grant to help cover these same expenses.  

  • Note that you will not have to submit a separate application to the Canada Greener Homes Grant when combining funding.   

  • Additional financial assistance may also be available from other existing federal, provincial, territorial, and utility programs where applicable. 

  • Please note that the program is finalizing details and therefore no eligibility confirmation emails or payments will be sent at this time. However, you may be contacted to ensure completeness of your registration. Homeowners who pre-register will be contacted once additional details are available to complete the application process later in the spring. 

  1. What can the OHPA grant be used for? 

The OHPA grant must be used toward the purchase and installation of an eligible, cold climate air source electric heat pump system(s).  

  • You will need to get quotes from a mechanical contractor as part of the application process.  Please work with them to ensure that the heat pump system you choose is both eligible for the grant and appropriately sized for your home. 

In addition to the installation of a heat pump system(s), grant funding may also be used for: 

  • Any electrical and mechanical upgrades required in your home for the new cold climate air source heat pump system(s); 

  • the safe removal and/or decommissioning of your oil tank; 

  • the installation of a back-up electric heating system (such as baseboards, as required); AND/OR 

  • switching over other household systems that rely on oil, such as a hot water heater (where necessary). 

The OHPA grant can be combined with unused funding available under the Canada Greener Homes grant for eligible heat pump-related costs.  But the OHPA grant cannot be used for other energy efficiency retrofits, such as windows, doors, insulation, or solar panels. For these other types of retrofits, please apply separately for the Canada Greener Homes grant or loan. 
 

  1. How is the OHPA grant different from the Canada Greener Homes grant? 

The OHPA grant is more targeted than the Canada Greener Homes grant. The four key differences are:  

  • OHPA is specifically intended to help low to median income households transition off oil.   

  • Only costs associated with the installation of a new, cold climate, air source heat pump system are eligible for funding (see Q2). 

  • Unlike when you apply for the Canada Greener Homes grant, the OHPA grant does not require a home energy evaluation. 

  • The OHPA grant money will be available before the purchase and installation of a new heat pump, rather than after. 

  1. Why is the OHPA program only being offered to low- to median-income homeowners?  

The new OHPA program is designed to benefit low-to-median-income Canadian households by making heating and cooling more affordable.  

Both the Canada Greener Homes Grant and the Canada Greener Homes Loan remain available to all eligible homeowners in Canada, regardless of income-level but they do require an EnerGuide home evaluation. 

Heat pumps 

  1. Why should I invest in a heat pump? 

Electric heat pumps can help you save money on your heating bills and reduce your household emissions. They are a proven and reliable technology, capable of providing year-round comfort control for your home by:  
 

  • heating it in the winter  

  • cooling it in the summer  

  • and helping to improve indoor air quality.  

On average, homeowners who switch from oil furnaces to cold-climate air source heat pumps can expect to save between $1,500 and $4,700 per year on home energy bills. 

To learn more about the benefits of heat pumps, take a look at this video by Natural Resources Canada: https://youtu.be/-wTRGbDY7Kk  

More information on heat pumps is also available on the OHPA website: https://canada.ca/heat-pumps-grant.  

  1. Will heat pumps even work in our Canadian climate?  

Cold climate air source heat pumps have been designed specifically to work in our Canadian climate. They operate well in temperatures well below freezing, down to –30°C temperatures.  

This is possible because there is thermal energy available in the air, even at very low temperatures. For example, air at -18°C still has 85% of the thermal energy as air at 21°C.  

Cold climate air source heat pumps are also capable of switching to a cooling mode so they can cool your home during hot Canadian summers.    

  1. What heat pumps are eligible? How will I know if the heat pump I’ve selected is eligible? 

Only certain cold climate heat pump systems are eligible for funding. 

Please work with your mechanical contractor to ensure that the heat pump system you choose is both eligible for the OHPA grant and appropriately sized for your home.  
 
The complete list is available on OHPA website at: https://canada.ca/heat-pumps-grant. 
 

  1. Do heat pumps under OHPA require a minimum number of heads per floor like the Greener Homes grant program? 

No; however, the heat pump must be sized and capable of distributing heat to your entire home. Your mechanical systems contractor will be required to sign an attestation form confirming that the cold-climate air source heat pump is capable of distributing heat throughout the entire home.   

  1. How do I know which heat pump is best for me? 

Cold climate air source heat pumps vary in size and configuration and need to be sized properly to meet your home’s heating and cooling needs.  

Please work with your mechanical contractor to ensure that the heat pump system you choose is both eligible for the OHPA program and appropriately sized for your home.  
 
The complete list of cold climate heat pumps eligible for OHPA funding is available on OHPA website at: https://canada.ca/heat-pumps-grant. 
 
Note that all components of a heat pump system (outdoor and indoor units and corresponding air handler where applicable) must be compatible and listed together as an eligible product. 
 

Eligibility Criteria 

  1. Am I eligible for the OHPA program? 

You may be eligible for the OHPA program if:   

  • your household income qualifies as median or below, after-tax; 

  • you are the primary resident and owner of your home;  

  • you heat your home with oil (and can provide copies of your oil fuel bills for the last year); and 

  • your property type is eligible for a new heat pump. 

For more detailed and up-to-date information on eligibility criteria, please refer to the OHPA website: https://canada.ca/heat-pumps-grant.   

Note that you would not be eligible for OHPA if you previously received funding for a new heat pump as part of the Canada Greener Homes Grant or Loan. 

  1. How do I know if I have a “low to median” after-tax income?  

 
OHPA employs low to median income thresholds as determined by Statistics Canada. What is considered “low to median after-tax income” differs by province and household size.  

Please refer to the OHPA website for more detailed information, including a helpful table which outlines the maximum eligible incomes for the OHPA grant, according to province/territory and household size: https://canada.ca/heat-pumps-grant  

AGENT: For more detail, record as a call back. 

  1. Do I need a home energy evaluation for this new OHPA grant?  

 
No. A pre-retrofit EnerGuide home energy evaluation is not required for eligible homeowners to access the Oil to Heat Pump Affordability grant.   

The OHPA grant can even be combined or topped up with unused funding available through the Canada Greener Homes Grant (up to another $5,000) without the need for a home energy evaluation. 

  1. I heat my home with propane or diesel; am I eligible for a grant? 

Currently, the OHPA program is only targeting homeowners who heat with home heating oil. We know that making the switch from oil heating to a heat pump is beneficial, both environmentally and economically.  

Application process 

  1. How do I apply? 

  1. I live in PEI; how can I access the OHPA grant? 

PEI and the Government of Canada are working together to help low to median income Canadians transition off oil heating.  

If you live in PEI, you can apply for combined funding from OHPA, the Canada Greener Homes Grant and the province to switch from oil to heat pumps in one streamlined application. Please visit the PEI provincial website for more information:  

  1. I live in Nova Scotia; how can I access the OHPA grant? 

Nova Scotia and the Government of Canada are working together to help low to median income Canadians transition off oil heating.  

If you live in Nova Scotia, you can apply for OHPA, the Canada Greener Homes Grant  as well as funding available under the provincial HomeWarming and Home Energy Assessment programs through one streamlined application. Please visit the provincial website for more information:  

  1. I live elsewhere in Canada; how can I access the OHPA grant? 

If you live anywhere else in Canada, including in Quebec and Ontario, you will apply for the OHPA program through the national Canada Greener Homes Portal at: www.Canada.ca/greener-homes-portal   

You will need to create an account using your sign-in partner or your GCKey first.  

[AGENT – Refer to “How to Apply” in the document “Troubleshoot online issues with the Canada Greener Homes Grant portal”]  

Then select “New Application for the Oil to Heat Pump Affordability Grant.” 

You will be asked to provide various details and documents. 

  • The documents are required to confirm your eligibility, but also to calculate the anticipated grant amount.  

  • It is a good idea to have these documents ready before you start the application process, in particular the contractor quotes for the purchase and installation of your new heat pump system.  

After successfully creating your application, you will receive an application number (for example, OHPA000000).  

  1. What documents do I need to provide? 

When you apply for the OHPA program on the national portal*, you will need to provide: 

  • proof of your primary residence via a valid piece of government-issued identification, such as a driver’s licence; 

  • proof of home ownership via a property tax roll number, which can normally be found on municipal property tax documents;  

  • proof of oil usage (minimum 1000 litres) via copies of your oil heating bills or invoices from the last year; and  

  • estimated costs you will incur, by providing at least one contractor quote for each planned eligible expense. 

  • A minimum of one quote for each eligible measure is required.  

  • Please submit all relevant quotes from each contractor you intend to hire when you apply, because your grant amount will be based on this information and only one grant payment will be issued per household.  

Also, you may be asked at a later date to provide your Social Insurance Number in order to verify with the Canada Revenue Agency that your household income is “median or below”. 

*Note that requirements may differ for residents of PEI and Nova Scotia. 

  1. What accessibility measures are available for applicants? 

All Canadians have the right to take part fully in society. We endeavour to eliminate any barriers to accessing our programs. For this reason, we provide various ways to access the application and/or contact the Greener Homes team:  

Email: canadagreenerhomesgrant-subventionmaisonsvertes@nrcan-rncan.gc.ca  
  
AGENT: Record this as a call back for ordering an offline homeowner kit.

  1. Why do I need contractor quotes before I can apply through the national portal? 

Through the OHPA program, grants are provided to homeowners before a heat pump is installed. As such, contractor quotes are required early in the process to provide information on how much your heat pump system will cost and what other eligible measures you plan to undertake.  Program staff will use the contractor quotes to calculate the total grant funding.  

  • Note: When seeking quotes, please work with your contractor to ensure that the chosen heat pump system is both eligible for funding and appropriately sized for your home.  

  • Only cold climate air source heat pumps that are listed on the OHPA website are eligible for funding.  Please refer to the OHPA website for more details: https://canada.ca/heat-pumps-grant 

  1. I submitted my application, what’s next? When will I receive my grant funding? 

If you pre-registered for the OHPA program through the national online portal,* program staff will start reviewing your application to confirm your eligibility.  

Please note, however, that the OHPA program is still being finalized and therefore no payments will be released at this time. You will be contacted by email regarding next steps.  

  • Note: If you are planning to decommission or remove an oil tank, it is strongly recommended to consult your home insurance provider and your local authority/regulator to ensure full compliance with all local regulations. 

* Processes may be different for residents of provinces offering co-delivery.  

If you live in Nova Scotia or Prince Edward Island, please refer to the respective provincial program for more information: 

Situation-specific  

  1. I recently installed a heat pump, can I still get OHPA funding? 

It depends. If you are an eligible low- to median-income homeowner, and you installed an eligible cold climate air source heat pump system on or after January 31, 2023, you could still apply for a retroactive OHPA grant.  

However, homeowners who installed a heat pump system prior to January 31, 2023 are not eligible for an OHPA grant. 

If you live in Nova Scotia or Prince Edward Island, please refer to the respective provincial program for more information: 

AGENT: For homeowners from anywhere else in Canada, please record as a call back. 

  1. Can I install a heat pump before the program has confirmed I’m eligible? 

If you have applied for grant funding, we do not recommend that you install your heat pump before the program confirms your eligibility.  By doing so, you run the risk of incurring costs that would not be eligible for funding. 

The OHPA program will be retroactive to January 31, 2023, meaning that eligible low to median income homeowners who already installed an eligible cold climate air source heat pump system on or after January 31, 2023, could still apply for the grant.  
 

  1. Can I apply for the OHPA grant if I have already completed (or am about to complete) the Canada Greener Homes grant process? 

It depends on whether you installed a heat pump or not:  

  • If you received funding through the Canada Greener Homes grant for a heat pump, then you are not eligible for the OHPA grant.  

  • If you received funding through the Canada Greener Homes grant but you did not install a heat pump, then you can still apply for the OHPA grant.   

Any unused portion of your Canada Greener Homes grant is still available and can be combined with the OHPA grant to cover the costs associated with switching from oil to a heat pump.  

For example, you received $4,000 in grant funding from the Canada Greener Homes grant for installing new windows in your home, but now you want to install a heat pump. You could apply for the $5,000 OHPA grant, without needing a home evaluation. Program staff could combine your grant funding with the unused balance of your Canada Greener Homes grant, i.e. $1,000. You could receive a total of $6,000 in combined grant funding for your heat pump. 

  1. Can I still apply for the Canada Greener Homes grant? 

It depends on whether your OHPA grant is combined or topped up with the Canada Greener Homes grant, and by how much.  

Homeowners can receive up to $10,000 in combined grant funding for switching to a heat pump (up to $5,000 through OHPA, plus up to another $5,000 through Canada Greener Homes).  

If you receive the full $10,000 in combined grant funding, you would not be eligible to apply for additional funding through the Canada Greener Homes grant.  

However, if your combined grant funding for your heat pump is less than the full $10,000, you can still apply for the Canada Greener Homes grant to undertake other retrofits, such as improving insulation or replacing windows or doors. It is important to note that, for these other retrofits: 

  • You will only be eligible for the balance (or the unused portion) of the Canada Greener Homes grant. 

  • You will be required to complete a “pre-retrofit” EnerGuide home assessment.

  1. Can I still apply for the Canada Greener Homes Loan? 

Yes, you are still able to apply for the Canada Greener Homes Loan to complete additional retrofits for your home. However, the Canada Greener Homes Loan has different criteria than OHPA, including the requirement to complete an EnerGuide home evaluation.   

AGENT: Refer to the Canada Greener Homes Loan FAQ document. 

  1. Will I need to remove the oil tank from my home? 

Many jurisdictions require the removal of an oil tank that is no longer in use. It is your responsibility to ensure that all relevant regulations are adhered to. 

If you are planning to decommission or remove an oil tank, it is strongly recommended to confirm your plans with your home insurance provider and your local authority/regulator before you start the work to ensure full compliance with all local regulations.

  1. What happens after my heat pump is installed? 

Once all the work has been completed, you will need to log back into the Canada Greener Homes Portal to submit your final receipts and contractor attestation form. This must be completed within six months of receiving your grant payment.  

You may also be selected for a verification process, whereby Natural Resources Canada will undertake either an in-person visit or a virtual visit to verify that the work has been completed in accordance with the OHPA eligibility criteria and grant process.  

  • In-person verifications will be conducted by an NRCan-authorized representative who will confirm compliance with the program, and also conduct an energy assessment of the property. They will provide you with a full report of the findings, at no charge.    

  • Virtual verifications will be conducted using a smart-phone video telephony application such as FaceTime, where you will need to provide an NRCan authorized representative with the opportunity to confirm compliance with the program.  

If you fail to comply with this process or if the work is found to be not in compliance with the eligibility criteria, Natural Resources Canada may request a full or partial refund of any funding that has been provided. 

  1. I don’t use heating oil to heat my home but I would like to transition to using a heat pump, what do I do?  

If you rely on other fuel sources to heat your home, the Canada Greener Homes Grant and Loan remain available for homeowners across Canada. For more information about available opportunities, please visit: www.Canada.ca/greener-homes-initiative   

We also recommend checking out the Low Carbon Economy Fund, delivered through Environment and Climate Change Canada. Learn more here: https://www.canada.ca/en/environment-climate-change/services/climate-change/low-carbon-economy-fund.html  

  1. How is OHPA available for Indigenous communities?    

OHPA is available for Indigenous communities in the same way the Canada Greener Homes Grant is available for Indigenous communities. Individual Indigenous homeowners, like all homeowners, are welcome to apply to the OHPA program as long as they meet the eligibility requirements.  

  • Individual Indigenous homeowners living on-reserve can apply through the national online portal.   

  • Indigenous group applicants (e.g., Indigenous governing body, housing management body, or other) apply to the program with one single application via the Indigenous Engagement team. Please contact diana.rocabaltzis@NRCan-RNCan.gc.ca for more information.  

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