Cold-climate heat pump replacing an oil heating system at an Ontario home

Ontario: open to income-qualified oil homes

Oil-to-Heat-Pump Affordability Program in Ontario

In Ontario this federal program runs through Save on Energy: income-qualified oil-heated homes can get a cold-climate heat pump installed at no cost (up to $25,000 in funding). Over the income limit? The Home Renovation Savings Program pays up to $7,500 (non-gas homes; $2,000 for gas-heated homes).

See active rebates (416) 835-4775

Not closed in Ontario. The July 31, 2026 deadline you may have read about applied only to Alberta, Manitoba, NWT, Quebec and Saskatchewan, where Ottawa ran the program directly. In Ontario, income-qualified oil-heated homes apply through Save on Energy's Energy Affordability Program, and any oil home can use the Home Renovation Savings Program.

Why oil-heated households save the most by switching

Heating oil costs are typically several times more per unit of heat than natural gas, and 3 to 5 times more than running a heat pump. An average Ontario oil-heated home spends $3,000 to $5,000 per heating season; the same home on a heat pump spends $1,000 to $1,800. For income-qualified homes the install itself is free; for everyone else, the running-cost savings plus the HRS rebate keep payback strong.

The program at a glance (Ontario)

$25,000

Max value, no-cost install

Oil-heated

Primary heat source

Income

Eligibility tested

Open

Apply via Save on Energy

What the program covers in Ontario

Unlike a standard rebate, the Ontario delivery covers the full oil-to-electric switch as a direct installation. No money is paid to you except the $250 bonus.

Eligible cost	Amount	Notes
Cold-climate heat pump system	No cost	Installed through the Energy Affordability Program; value up to $25,000 in combined federal and provincial funding
Electrical and mechanical upgrades (if required)	Eligible	Work needed to run the new heat pump system
Safe removal of the oil tank	Eligible	Listed by NRCan as an eligible related cost
Home energy needs assessment	Free	Done by a Save on Energy delivery agent
Bonus payment	$250	One-time cheque once the heat pump system is pre-approved; no other funds are paid to applicants

Who qualifies

You may qualify if

• You own the home and heat primarily with oil
• The home is on the Ontario electricity grid
• Household income is within the Energy Affordability Program limits
• Or you receive OESP, LEAP, ODSP, Ontario Works or GIS

This path does not fit if

• You heat with natural gas (see the Home Renovation Savings Program instead)
• Household income is above the program limits
• You want a contractor to apply for you (you must apply yourself)

How it works in Ontario

Based on Save on Energy and Natural Resources Canada program pages, September 2026.

Check eligibility

Oil is your primary heating source, the home is on the Ontario electricity grid, and your household meets the Energy Affordability Program income limits or receives a qualifying support program.

Apply to Save on Energy

Complete the Energy Affordability Program form online or call 1-844-770-3148. You must apply yourself; third parties cannot apply for you.

Home assessment

An authorized Save on Energy delivery agent (CLEAResult for postal codes starting with L, M or P) visits to confirm eligibility and scope the heat pump system.

Pre-approval and $250 bonus

Once the heat pump system is pre-approved, the $250 bonus cheque is mailed to you.

No-cost installation

The program's contractor installs the cold-climate heat pump and any eligible related work. You are not asked to pay for the approved scope.

Your options if you heat with oil

These are the paths open to an oil-heated Ontario home today:

Income-qualified: a no-cost heat pump through Save on Energy's Energy Affordability Program (the Ontario delivery of the Oil-to-Heat-Pump Affordability Program)
Home Renovation Savings (Ontario): up to $7,500 for a cold-climate air-source heat pump in a non-gas home, or up to $12,000 for geothermal (no income test)
Standard equipment financing: ask EcoFrost about options to spread the balance of your project

Frequently asked questions

Is the Oil-to-Heat-Pump Affordability Program still open in Ontario?+

Yes, for income-qualified oil-heated homes. Ontario is one of the provinces that co-delivers the program: here it runs through Save on Energy's Energy Affordability Program, which installs a cold-climate heat pump at no cost (up to $25,000 in federal and provincial funding, plus a $250 bonus cheque). The July 31, 2026 deadline and the $10,000 upfront cheque applied only where Ottawa ran the program directly: Alberta, Manitoba, NWT, Quebec and Saskatchewan.

Who qualifies in Ontario?+

Homeowners who heat primarily with oil, are connected to the Ontario electricity grid, and meet the Energy Affordability Program income limits (for example, before-tax household income up to $96,439 for a household of four), or who receive support such as OESP, LEAP, ODSP, Ontario Works or the Guaranteed Income Supplement. Save on Energy confirms eligibility when you apply.

How do I apply?+

You apply yourself, through Save on Energy's Energy Affordability Program online form or by calling 1-844-770-3148. The federal rules do not allow contractors or energy advisors to apply on a homeowner's behalf. An authorized Save on Energy delivery agent then assesses the home and arranges the installation.

I heat with oil but I am over the income limit. What can I do?+

An oil-heated home counts as a non-gas home under the Ontario Home Renovation Savings Program, which pays up to $7,500 for a cold-climate air-source heat pump or up to $12,000 for geothermal, with no income test and no energy assessment. We can quote that path during a free assessment.

Why switch from oil to a heat pump?+

Heating oil typically costs several times more per unit of heat than natural gas and 3 to 5 times more than running a heat pump. An average Ontario oil-heated home spends $3,000 to $5,000 per heating season; the same home on a heat pump spends roughly $1,000 to $1,800.

Does EcoFrost handle oil tank removal and the heat pump install?+

For homes going through the Home Renovation Savings Program, yes: we do the cold-climate heat pump, any required electrical panel upgrade, and certified oil tank decommissioning, and we handle the rebate paperwork. Installations under the Energy Affordability Program are arranged by Save on Energy's own delivery agents.

Still heating with oil? Let's price the switch

We do the heat pump, the electrical panel work, and certified oil tank decommissioning under one roof, and we tell you honestly whether the Save on Energy no-cost path or the Home Renovation Savings rebate fits your home. Free in-home assessment.

(416) 835-4775 Book Assessment