Oil to Heat Pump Affordability Program (OHPA)

Still heating your home with oil? You could qualify for funding to switch to an energy-efficient heat pump. Our latest blog explains how the Oil to Heat Pump Affordability Program (OHPA) works in Ontario.

For households that heat their homes with oil, switching to a cold‑climate electric heat pump can mean significantly lower energy bills, improved comfort, and reduced carbon emissions. To help make this transition more affordable, the federal government’s Oil to Heat Pump Affordability Program (OHPA) provides financial support for eligible homeowners. In Ontario, this program is being coordinated with local energy initiatives to make the process easier and more generous.

What the Program Does

The Oil to Heat Pump Affordability Program provides a grant to help cover the cost of buying and installing an eligible electric heat pump system in a home currently heated with oil. Depending on where you apply and the delivery arrangement in your province, eligible homeowners may receive up to $10,000 in upfront funding to help with installation costs — and in Ontario, co‑delivery partnerships can increase support further.

The funding applies to:

Purchase and installation of a cold‑climate heat pump
Electrical or mechanical upgrades required for the new system
Safe removal of the existing oil tank
Installation of auxiliary systems if needed, such as a backup electric heater
Switching other oil‑using systems (for example, an electric water heater) when applicable

Who Is Eligible

To qualify for the Oil to Heat Pump Affordability Program, you must generally:

Own and live in your home in Ontario
Have your primary heating source currently be oil
Have household income at or below the median after‑tax income threshold for your area
Be connected to an integrated electricity grid
Provide proof of recent oil use (such as receipts showing at least 500 L of oil purchased in the past year)

Because the funding is designed to help lower‑ and middle‑income households, income eligibility is an important criterion to check before applying.

How It Works

Check eligibility and apply. Many applicants start with a quick online screening for income and heating type.
Receive pre‑approval and funding. If approved, you may receive an upfront payment of the grant — meaning funds are provided before you pay for equipment or installation.
Install your heat pump. Work with a qualified contractor to install the eligible heat pump system and any required upgrades.
Final documentation. After installation, submit any final paperwork so funding is confirmed and, if necessary, final payments are processed.

What You Gain

Switching from oil to an efficient heat pump has several benefits:

Heat pumps can be two to three times more efficient than traditional heating systems, reducing energy use and costs.
New systems provide year‑round comfort with both heating and cooling capability.
You can reduce your home’s greenhouse gas emissions, contributing to a cleaner environment.
The grant covers a meaningful portion of the cost, with the potential for additional provincial or utility program support depending on where you live.

In Ontario, the program is often connected with the Save on Energy Affordability Program, meaning income‑qualified households can access heat pumps along with other free upgrades under that initiative.

Have questions? Please contact us at [email protected]