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Canada and PEI to co-deliver Oil to Heat Pump Affordability Program
July 18, 2024 By Anthony Capkun
![](https://www.energy-manager.ca/wp-content/uploads/2024/01/CAN-Oil-Heat-Pump-Affordability-OHPA-558.jpeg)
July 18, 2024 – The governments of Canada and Prince Edward Island announced they will co-deliver the Oil to Heat Pump Affordability (OHPA) program in that province.
Low- to median-income households that currently heat with oil can apply to receive a free heat pump.
Natural Resources Canada says OHPA funding of up to $15,000 per eligible homeowner will not only “provide thousands more dollars to Prince Edward Islanders to switch to a heat pump”, but will allow for additional measures such as switching to electric water heaters, supplemental electric resistance heaters, electrical upgrades, and the safe removal of oil tanks.
Eligible applicants also receive an upfront, one-time payment of $250 from the federal government.
As of July 5, a total of 7403 heat pumps have been installed under the plan nationally, and 10,568 Canadian households have received upfront payments.
In jurisdictions without federal-provincial/territorial co-delivery arrangements, oil-heated households have been and will continue to be able to apply for up to $10,000 in federal OHPA funding through the national portal managed by Natural Resources Canada.
“Making the switch to more energy-efficient heating systems can help Canadians save thousands on their energy bills, reduce their energy use, and decrease their carbon footprint,” said Jonathan Wilkinson, Minister of Energy and Natural Resources.
According to NRCan, the average Canadian home that uses heating oil spends $2000 to $5500 on energy bills per year, depending on the province or territory. Honeowners that switch to a cold-climate heat pump could save about $1500 to $4500 per year on their energy bills.
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