Oil-to-Heat-Pump Affordability Program 2026
Up to $10,000 for income-qualified Ontario households converting from oil heating to a cold-climate heat pump. Includes the heat pump, electrical panel upgrade, and oil tank decommissioning.
Why oil-heated households save the most by switching
Heating oil costs are typically 2 to 3 times more per BTU 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. Combined with the grant, payback is often under 5 years.
The program at a glance
What the grant covers
Unlike standard rebates that only cover the heat pump unit, this program is designed to cover the FULL oil-to-electric transition.
| Eligible cost | Amount | Notes |
|---|---|---|
| Cold-climate heat pump (ducted, ductless, or air-to-water) | Up to grant maximum | Must be ENERGY STAR certified cold-climate model |
| Electrical panel upgrade (if required) | Included in grant | Common: 100A to 200A upgrade adds $1,500 to $3,500 to project |
| Oil tank decommissioning and removal | Included in grant | Certified contractor removes tank and oil furnace per TSSA regulations |
| Pre and post EnerGuide evaluations | Often subsidized | Energy advisor fees frequently bundled into the program for income-qualified households |
| Installation labor and permits | Included in grant | Standard EcoFrost installation includes TSSA permit and inspection |
Who qualifies
You DO qualify if
- • You currently heat primarily with home heating oil
- • Household income at or below the provincial threshold
- • Primary residence in Canada (rentals limited)
- • Willing to fully decommission the oil tank
- • Installing an ENERGY STAR cold-climate heat pump
- • Completing pre and post EnerGuide evaluations
You do NOT qualify if
- • Your primary heat source is gas, electric, or wood (not oil)
- • Income exceeds the provincial threshold
- • You want to keep oil as a backup heating source
- • Property is a vacation home or non-primary residence
- • Heat pump is not ENERGY STAR cold-climate certified
How to apply
EcoFrost handles the contractor side (assessment, quote, installation, oil tank removal). You file with NRCan; we provide every document you need.
Confirm dual eligibility
(1) Oil is your primary heating source today. (2) Household income is at or below the provincial threshold. Both required. The NRCan portal has an eligibility check.
Pre-retrofit EnerGuide
Registered energy advisor evaluates your home. The assessment confirms oil is the primary heat source and identifies the right heat pump sizing.
Get an EcoFrost quote
We assess your home, design the conversion (heat pump model, electrical panel scope, oil tank removal scope), and provide a fixed-price quote eligible for the grant.
Submit NRCan application
Apply through the federal portal. Documentation needed: income proof, EnerGuide report, oil heating proof (recent oil delivery invoices), and our quote.
Installation + oil tank decommissioning
Once pre-approved, EcoFrost installs the heat pump, completes electrical upgrades, and arranges certified oil tank removal. Typically 2 to 5 days on-site.
Verification and payout
Same energy advisor returns for the post-retrofit EnerGuide. Once verified, the grant is paid by direct deposit, typically within 4 to 6 weeks.
Stacking — best-case for oil-heated income-qualified homes
An income-qualified oil-heated Ontario home converting to a heat pump can typically stack:
- This program: up to $10,000 (oil-to-HP-specific)
- Canada Greener Homes Affordability: additional grant for income-qualified households (up to $10K federally / $25K co-delivery)
- Home Renovation Savings (Ontario): up to $12,000 (no income test, stackable)
- Canada Greener Homes Loan: 0% interest financing for any remaining cost up to $40,000
Realistic total stack for an income-qualified oil-heated Ontario home: $32,000 to $47,000 in grants. Most projects end with $0 to $3,000 out of pocket.
Frequently asked questions
What is the Oil-to-Heat-Pump Affordability Program?+
Who qualifies for the oil-to-heat-pump grant?+
What does the grant cover?+
How is this different from the regular Canada Greener Homes Affordability Program?+
Can I keep my oil furnace as backup?+
What if my income is above the threshold?+
How long does the conversion take?+
Get off oil for close to zero out-of-pocket
EcoFrost is a participating contractor. We do the heat pump, the electrical panel work, and the certified oil tank decommissioning under one roof. Free in-home eligibility check.