Feds dangle $250 million heat-pump incentive

November 29, 2022



Residential renovation contractors—especially those in Atlantic Canada—may want to expand their energy-saving activities.
On November 21, 2022, the federal government announced a $250-million grant program aimed at helping Canadians to stop heating their homes with fossil fuels and switch to electric heat pumps.
Speaking to reporters in Stellarton, N.S., Immigration Minister Sean Fraser said the Oil to Heat Pump Affordability Grant will provide up to $5,000 for low- and middle-income homeowners. The money, he said, will cover costs such as installing heat pumps, upgrading the electrical required for new equipment and removing oil tanks.
“The real savings over time is going to come when people have smaller power bills or home heating bills as a result of these investments,” Fraser said.
Fraser added eligible homeowners will be able to combine the new grant with existing federal and provincial programs that assist with home heating. He said the grant will be made available early in 2023, but couldn’t say how much funding would go to each province and territory.
“It’s hard to pinpoint with precision the exact number of households, but it will depend upon the uptake and the amount that each home requires,” Fraser said.
He said this new funding is in addition to an envelope of $250 million over four years that was announced in September 2022 to assist with home heating costs. Nearly half of that money—$120 million—was earmarked for Atlantic Canada, where about 30 per cent of homes use oil for heating.