Oil-to-Heat-Pump Affordability Program: Closed to New Applications
This federal grant (up to $10,000 for income-qualified oil-heated homes) stopped accepting new applications on July 31, 2026. If you heat with oil, there are still active Ontario options below.
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. Even with the federal grant closed, the running-cost savings plus the HRS rebate keep payback strong.
The program at a glance (historical)
What the grant covered
Unlike standard rebates that only covered the heat pump unit, this program was 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 | Had to be ENERGY STAR certified cold-climate model |
| Electrical panel upgrade (if required) | Was included | Common: 100A to 200A upgrade adds $1,500 to $3,500 to project |
| Oil tank decommissioning and removal | Was included | Certified contractor removes tank and oil furnace per TSSA regulations |
| Pre and post EnerGuide evaluations | Often subsidized | Energy advisor fees frequently bundled in for income-qualified households |
| Installation labor and permits | Was included | Standard EcoFrost installation includes TSSA permit and inspection |
Who qualified
You qualified if
- • You heated 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 did NOT qualify if
- • Your primary heat source was gas, electric, or wood (not oil)
- • Income exceeded the provincial threshold
- • You wanted to keep oil as a backup heating source
- • Property was a vacation home or non-primary residence
- • Heat pump was not ENERGY STAR cold-climate certified
How the grant worked
For reference. This process applied while the program was open; only applicants approved before July 31, 2026 can still complete it.
Confirm dual eligibility
(1) Oil was your primary heating source. (2) Household income at or below the provincial threshold. Both were required.
Pre-retrofit EnerGuide
A registered energy advisor evaluated the home, confirmed oil as the primary heat source, and identified the right heat pump sizing.
Contractor quote
The contractor designed the conversion (heat pump model, electrical panel scope, oil tank removal scope) and provided a fixed-price quote eligible for the grant.
NRCan application
The homeowner applied through the federal portal with income proof, EnerGuide report, oil heating proof, and the contractor quote.
Installation + oil tank decommissioning
Once pre-approved, the contractor installed the heat pump, completed electrical upgrades, and arranged certified oil tank removal.
Verification and payout
The energy advisor returned for the post-retrofit EnerGuide, then the grant was paid by direct deposit. Applicants already approved have until January 31, 2027 to complete this.
Active options for oil-heated homes
With the federal oil-to-HP grant closed, these are the paths still open to an oil-heated Ontario home:
- Income-qualified: a no-cost heat pump through Save on Energy's Energy Affordability Program (Ontario delivery of the Canada Greener Homes 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?+
I currently heat with oil. What can I do now?+
What was the Oil-to-Heat-Pump Affordability Program?+
I applied before July 31, 2026. Can I still get the grant?+
Why switch from oil to a heat pump?+
Does EcoFrost handle oil tank removal and the heat pump install?+
Still heating with oil? Let's price the switch
EcoFrost is a participating contractor. We do the heat pump, the electrical panel work, and certified oil tank decommissioning under one roof, and we confirm which active rebate applies to your home. Free in-home assessment.