OTTAWA — The federal government has announced the launch of a revamped Oil to Heat Pump Affordability (OHPA) program in Newfoundland and Labrador.
Under the program, low- to median-income households in Newfoundland and Labrador can now apply to receive up to $22,000 in funding to cover the full, average cost of switching to a heat pump, including up to $15,000 from the Government of Canada’s OHPA program and up to $7,000 from the Government of Newfoundland and Labrador and other federal funds.
Additionally, stated a release, successful applicants will also receive a one-time payment of $250 from the federal government. The federal government will soon be sending the payments to thousands of households in Newfoundland and Labrador, Nova Scotia and Prince Edward Island that signed up to receive a heat pump supported by the original OHPA program since it first launched in the spring of 2023.
The bolstered OHPA grants of up to $15,000 are available to households in jurisdictions that indicated they intend to further support lower-income, oil-heated households to make the switch to a heat pump where the federal government has a co-delivery arrangement in place that includes provincial and territorial contributions. The federal government currently has co-delivery arrangements in place with Newfoundland and Labrador, Nova Scotia and Prince Edward Island.
Other Canadian households will continue to be able to apply for up to $10,000 in federal OHPA funding via the national portal managed by NRCan. The Government of Canada is currently working with five provinces and territories on heat pump agreements.
The release states the average Canadian home that uses heating oil spends $2,000 to $5,500 per year, depending on the province or territory. The average Canadian home that uses natural gas spends around $1,000 per year on home heating, nearly three times less than the cost per year for an average Canadian oil-heated home. Homeowners who switch from an oil furnace to a cold-climate heat pump could save up to an average of $2,500 per year on their home energy bills.
Wondering about the heat pump rebates