Federal $10,000 rebate program
Oil-to-heat-pump conversion across Canada
Replace your oil furnace and tank with a modern cold-climate heat pump. The federal Oil-to-Heat-Pump Affordability Program provides up to $10,000 — and the Maritimes stack it with provincial programs to $15,000-$17,000 in total rebates.
- Free quotes within 24 hours
- Licensed + insured installers
- Cold-climate-rated (CCHP) systems
- Greener Homes Loan paperwork handled
Typical installed cost
$10,000–$15,000
Install timeline
2–3 days (including oil-tank decommissioning)
Best for
Homes currently using oil heating (most common in Nova Scotia, New Brunswick, Newfoundland, PEI, rural Ontario, and Quebec). Income-qualified households may qualify for additional grant support.
Not ideal for
Homes that have already converted away from oil, or homes with natural-gas connection (gas-to-heat-pump uses different rebate structure)
Rebates: The Oil-to-Heat-Pump Affordability Program provides up to $10,000 federal funding. Income-qualified households (under certain thresholds) get higher amounts. Provincial programs in Nova Scotia, New Brunswick, PEI, and Newfoundland stack on top for combined $15,000-$17,000 in rebates.
- Free quotes within 24 hours
- Licensed + insured installers
- Cold-climate-rated (CCHP) systems
- Greener Homes Loan paperwork handled
The Oil-to-Heat-Pump Affordability Program in plain English
The Oil to Heat Pump Affordability Program (OHPA) is a federal program that funds the cost of removing an oil furnace and installing a heat pump. Eligibility:
- You currently use oil for your primary home heating - The home is your principal residence - Annual household income falls under regional thresholds (typically $80,000-$120,000 depending on family size and region)
Funding amount: up to $10,000 covering equipment + installation + oil-tank decommissioning. The program has been the single biggest driver of heat pump adoption in the Atlantic provinces.
Process: you apply through your provincial program partner (or directly through Natural Resources Canada in some provinces), the funds flow to your installer, and you don't pay out-of-pocket beyond any costs exceeding the $10,000 ceiling.
What conversion includes
A full oil-to-heat-pump conversion is a 3-step project:
1. Oil tank decommissioning — your oil tank is drained, removed, and disposed of per provincial environmental regulations. Tank size, age, and condition determine cost ($800-$2,000 typically; covered under OHPA). 2. Heat pump installation — either ducted (if you have existing ductwork around the furnace) or ductless multi-zone (for radiator/baseboard homes). Cold-climate certified, sized for your home's heating load. 3. Electrical service upgrade if needed — oil-heated homes often have lower electrical capacity (60-100A panels). Many conversions require an upgrade to 200A service. OHPA covers up to a defined ceiling for electrical work.
Total install time is typically 2-3 days. You'll be without primary heat for 1 of those days (do conversions in spring/fall, not mid-winter).
Why oil conversion is the highest-ROI heat pump install
Oil is the most expensive primary heating fuel in Canada — typically 2-3× the cost per unit of energy compared to a heat pump. A typical Maritime home using 2,000 litres of oil per year spends $2,000-$2,800 on heating fuel alone. A heat pump cuts that to $700-$1,200 in electricity.
Annual savings of $1,000-$1,500 + $10,000-$17,000 in rebates = payback period of 2-4 years on the un-rebated install cost. No other heating upgrade in Canada delivers that economics.
This is why the Maritimes have the highest heat pump adoption rate in Canada — the math is overwhelming.
Get a Free Oil-to-Heat-Pump Quote
Tell us about your home. A licensed installer in your province responds within 24 hours with an itemized written quote, including all federal and provincial rebate calculations.
Or call us: (833) 519-1833
Common questions
What if my household income is above the OHPA threshold?
You still qualify for the Canada Greener Homes Loan (up to $40,000 interest-free for 10 years), provincial rebates that stack with the loan, and standard heat pump federal funding (where available). The rebate total is lower than for income-qualified households, but the project still has strong economics.
Can I keep my oil tank for backup?
Yes — some installers will keep your oil furnace and tank as backup heat for the coldest days (a "dual-fuel" arrangement). But you won't qualify for the Oil-to-Heat-Pump Affordability Program in that case (the program requires oil to be fully decommissioned). Most homeowners choose full conversion for the larger rebate.
How is the oil tank disposed of?
Provincial regulations vary, but standard practice is: drain remaining oil (resold to your supplier), clean the tank with industrial absorbent, then either recycle (steel tanks) or dispose at a hazardous waste facility (fibreglass tanks). Your installer handles the paperwork and disposal — you just need to confirm in writing that the work was done before the tank-removal cost portion of OHPA can be claimed.