Ontario's Oil to Heat Pump Affordability Program: Who Qualifies and What to Expect

Many Ontario homes, particularly in rural, northern and eastern parts of the province, still heat with oil. Oil is typically one of the more expensive ways to heat a home, and oil tanks bring their own maintenance and insurance concerns. For income-qualified households, a joint federal-provincial program can cover most or all of the cost of switching to a heat pump.

What the program offers

The Oil to Heat Pump Affordability (OHPA) program in Ontario was announced in September 2025 as a co-delivered program between Canada and Ontario, run through Save on Energy. According to the program announcement, eligible households can receive:

• Up to $25,000 toward a heat pump: up to $15,000 federal and up to $10,000 provincial.
• An additional $250 upfront payment.

The program is aimed at income-qualified homeowners whose primary heat is oil. Income thresholds and documentation requirements are set by the program; check them on saveonenergy.ca (opens in a new tab).

Current intake status

The national federal OHPA intake closed on 31 July 2026. The Ontario stream is delivered by the IESO through Save on Energy, and its intake status may differ. Before you call a contractor, confirm on the Save on Energy website, or by phone, that applications are being accepted and what the current steps are.

Note: Program details can change with little notice. Treat the figures here as a starting point and confirm everything with the program before you sign any contract.

If you do not qualify on income

Oil-heated homes are treated as "other primary heat" under the Home Renovation Savings Program (HRS). As published in mid-2026, that means:

Equipment	HRS rebate for non-gas-heated homes
Cold-climate air-source heat pump	$1,250/ton, up to $7,500
Ground-source heat pump	$2,000/ton, up to $12,000

HRS heat pump rebates require a participating contractor, qualified equipment and pre-installation approval. A heat pump that has received another Enbridge, IESO or Government of Ontario incentive is not eligible for HRS, so you cannot normally combine OHPA and HRS on the same unit. See our guide to stacking rebates.

Practical issues for oil-heated homes

Cold-climate sizing. Many oil-heated homes are in colder parts of the province, from Ottawa (about 4,500 heating degree days) to Sudbury and Thunder Bay (roughly 5,000–5,700). A cold-climate air-source heat pump can run down to roughly −25 °C to −30 °C, but its output and efficiency fall as it gets colder. Insist on a room-by-room heat loss calculation, not a rule of thumb. Our guide to heat pumps in Ontario winters explains what to ask.

Backup heat. Most installations include electric resistance backup for the coldest days. Some households keep the oil furnace temporarily as backup, but that means keeping the tank, its maintenance and its insurance implications. Talk to your insurer before deciding.

Electrical capacity. Older rural homes may have 100-amp service. A heat pump with electric backup, plus an existing electric water heater and range, may need a panel or service upgrade. That work requires an ESA permit. Get it assessed early because it can affect cost and timing.

Oil tank removal. Fuel oil tanks are regulated by the TSSA (opens in a new tab). Removing a tank should be done by a registered contractor, and you should keep the paperwork for your insurer and for future buyers.

Operating cost. One litre of heating oil contains roughly 10.7 kWh of energy. An older oil furnace at around 80% efficiency delivers about 8.5 kWh of heat per litre. A heat pump with a seasonal COP of about 2.5 would use roughly 3.4 kWh of electricity to deliver the same heat. At typical Ontario oil and electricity prices, that usually means a meaningful reduction in heating cost. Our heat pump versus furnace calculator lets you enter your own prices.

Next steps

1. Confirm OHPA intake status and income eligibility on saveonenergy.ca (opens in a new tab).
2. Gather a year of oil delivery receipts and electricity bills to show your current use.
3. Ask a licensed electrician or your HVAC contractor to check panel and service capacity.
4. Get at least two quotes from contractors who participate in the program and will do a proper heat loss calculation.
5. Do not start work, or sign anything that commits you to start, until the program confirms your approval.

For more on what else may be available to your household, see our guide to income-qualified energy programs.