OHPA Heat Pump Program

What is the Oil Heat Pump Economic Applicability (OHPA) program?

The new Oil Heat Pump Affordability (OHPA) program will help low-income families transition from oil heating to more efficient electric heat pumps.

The OHPA program provides a subsidy of up to $5000 to cover the cost of replacing the oil heating system with a qualified cold climate air source heat pump system.

This subsidy can also be combined or supplemented with an additional maximum of $5000 from the Canadian Green Home Grant to help pay for these same expenses.

The Canadian government is working hard to make heat pumps more affordable for more Canadians through the Oil Heat Pump Affordability (OHPA) program. Now, Nova Scotia is collaborating with the federal government to promote the program to its residents.

According to the plan, middle - and low-income households in Nova Scotia using petroleum heating can apply for up to $30000 in funding to cover the full cost of switching to cold climate heat pumps; Of this, $15000 comes from the Canadian government's OHPA program, with a maximum of $15000 coming from Nova Scotia.

 

Am I eligible to participate in the OHPA program? How should I apply?

If the following conditions are met, you may be eligible to participate in the OHPA program:

Your family's after tax income meets the median or below;

You are the primary resident and owner of your property;

You use oil to keep your home warm (and can provide a copy of last year's fuel bill); AndYour property type is eligible to use the new heat pump.

For more detailed and up-to-date information on qualification criteria,

please refer to the OHPA website: https://canada.ca/heat-pumps-grant .

PEI and the Canadian government are working together to help low - and middle-income Canadians get rid of fuel heating.

You can apply for joint funding from OHPA, Canadian Green Home Grant, and provincial government to switch from fuel pumps to heat pumps through a simplified application. Please visit the Prince Edward Island website for more information:

https://www.princeedwardisland.ca/en/service/free-heat-pump-program

Please note that if you have previously received funding for a new heat pump as part of a Canadian Green Home Grant or loan, you will not be eligible for OHPA.

 

What documents need to be provided?

Prove your primary place of residence through a valid government issued identification document (such as a driver's license);

Provide proof of property ownership through the property tax registration number, which can usually be found on municipal property tax documents;

Provide proof of fuel usage (at least 1000 liters) through a copy of last year's fuel heating bill or invoice; AndBy providing at least one contractor quotation for the qualified cost of each plan, you will incur the estimated cost.

At least one quotation is required for each eligible measure.

Please submit all relevant quotations for each contractor you intend to hire when applying, as your subsidy amount will be based on this information and only one subsidy will be issued per household.

 

Why is the OHPA program only available to middle and low-income homeowners?

The new OHPA program aims to benefit low - and middle-income households in Canada by reducing heating and cooling costs.

The Canadian Green Home Grant and the Canadian Green Home Loan still apply to all eligible homeowners in Canada, regardless of their income level, but they do require EnerGuide housing evaluations.

If the following conditions are met, the homeowner may be eligible for OHPA subsidies:

-Starting from January 2023, their houses will be heated by fuel (proof must be provided through a copy of the fuel bill for the 12 months prior to application);

-They are the main residents and owners of single/semi detached homes located in Nova Scotia and can provide proof of ownership; 

-Their total household income is equal to or lower than the highest post tax household annual income determined by Statistics Canada.

 

Medium income rebate application

By upgrading with heat pumps, better insulation, wind protection, doors and windows, and other upgrades, make your home more comfortable and energy-efficient. If your income is moderate, you may be eligible for additional rewards for energy-saving upgrades, and your household energy assessment fees may be compensated.

The Canadian government and Nova Scotia are working together to help low-income Canadian households currently using petroleum heating transition to electric cold climate heat pumps. The Oil Heat Pump Affordability (OHPA) program provides up to $15000 in funding to help eligible homeowners achieve this transition, and can be combined with existing federal and provincial program funding.

 

Heat pump and oil furnace

Heat pumps have significant advantages over traditional oil furnaces, especially considering the new challenges faced by the oil heating industry. With the increasing shortage of fuel technicians, manufacturers are gradually phasing out fuel heating equipment and shifting towards more sustainable choices, becoming increasingly practical.

Heat pumps are efficient and can reduce operating costs by more than 50%. Their impact on the environment is also relatively small, which helps to reduce carbon footprint. Technological advancements have made heat pumps reliable even in cold climates, ensuring sustained warmth in Canadian households. Here are more reasons to consider installing a heat pump.

Compared to petroleum, heat pumps have some major advantages, including energy efficiency and health considerations. The NRC report states that the efficiency of heat pumps is two to three times that of oil furnaces. In addition, according to NRC data, oil stoves and boilers in Canada generate approximately 3 million tons of CO2 annually, equivalent to pollution generated by approximately 920000 vehicles. From a health perspective, fuel combustion in heating systems can also produce nitrogen oxides, sulfur dioxide, and fine particles, which are harmful to human health and the environment.

 

The significance of the (OHPA) plan

The federal government has recently updated the Oil Heat Pump Affordability Program (OHPA). Although the Green Home program ceased accepting applications in February 2024, it is important to know that the Oil Heat Pump program will continue to accept applications until funds are exhausted.

The decision to close the application for the "Green Home Plan" is due to the successful achievement of its objectives. However, there are plans to replace it in the near future.

Through this update, we would like to emphasize that opportunities can still be obtained through the ongoing Oil Heat Pump Affordability Program (OHPA). If you are interested in transforming your house into a heat pump, then now is the time to utilize the plan before it ends.

The Affordable Oil Heat Pump Program provides a subsidy of up to $10000, covering the purchase and installation of cold climate air source heat pumps and related costs, including:

-Electrical upgrades required for the new heat pump;

-Install a backup electric heating system (as needed);

-Switch to other household systems that use oil, such as water heaters (if necessary); and

-Safely remove the fuel tank.

 

The efficiency of a heat pump is two to three times that of an oil furnace. In fact, heat pumps only transfer heat, not generate heat, which is largely why they are more efficient and cost-effective than other alternative solutions.

Canadian households using heating oil spend an average of $2000 to $5500 per year on energy costs, depending on the province or region, making it the most expensive heating option. Homeowners who switch from oil stoves to cold climate heat pumps can save approximately $1500 to $4500 in household energy costs annually.

In Canada, oil stoves and boilers generate approximately 3 million tons of CO2 annually - equivalent to pollution generated by approximately 920000 cars. The combustion of oil in heating systems can also produce nitrogen oxides, sulfur dioxide, and fine particles, which are harmful to human health and the environment.

In June 2023, Environment and Climate Change Canada (ECCC) announced that it would provide up to CAD 60.5 million through its Capital Restructuring Low Carbon Economy Fund to support low-income homeowners in Nova Scotia to shift from home heating oil to more affordable low emission heating technologies, such as electric heat pumps.