Affordable Heat Pump Financial Aid Programs

Did you know you can get a grant for purchasing a heat pump in Canada?Which programs offer the best financial support? Are you eligible for financial assistance to help lower your costs? To encourage energy-efficient homes and reduce greenhouse gas emissions, both the federal and provincial governments have set up several funding programs.

A heat pump not only acts as an air conditioner in the summer and a heating system in the winter, but it can also help homeowners achieve substantial long-term energy savings. However, the upfront cost of purchasing a heat pump can be a barrier for many households. That’s why this article outlines the most accessible grants and the conditions you must meet to benefit from them.

Central or ductless heat pump: how to reduce the cost?

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LogisVert: Valuable Financial Support for Your Heat Pump

Launched in 2024 by Hydro-Québec, the LogisVert program helps Quebec homeowners with their energy transition by offering generous subsidies for the installation of high-efficiency heat pumps.

For a ductless (wall-mounted) heat pump eligible under the program, you could receive up to $6,700, and the total could climb to $7,840 for a very high-efficiency heat pump combined with caulking work. This financial boost is a great way to improve your home’s comfort while lowering your energy bills.

If you install a central heat pump combined with a thermal storage system, you may qualify for up to $22,000 in financial assistance.

To apply, simply create an account on the LogisVert portal and submit the required documentation within nine months after your project is completed.

For more information, check out our full article on the LogisVert Grant.

Canada Greener Homes Loan

The Canada Greener Homes Loan is a government-backed financing solution that encourages eco-friendly renovations. It offers an interest-free loan starting at $5,000 and up to $40,000, repayable over a period of up to 10 years. Among the eligible projects, the installation of a heat pump is a top priority.

This loan is available to homeowners who have already completed, or plan to complete, an energy assessment of their home by a certified advisor. Once the evaluation is done, the installation of an eligible high-efficiency heat pump can be fully or partially financed through this program.

Learn more: The Canada Greener Homes Loan: What Is There to Know?

Grant for Switching from Oil Heating to Heat Pump

The Oil to Heat Pump Affordability Program (OHPA) is a Canadian initiative aimed at helping homeowners replace fossil fuel heating systems with greener, high-performance alternatives.Under this program, you could qualify for a grant of up to $10,000, which covers:

• Full removal of your existing oil heating system (tank, ducts, etc.),

• Purchase and installation of an eligible heat pump.

The goal is to cut greenhouse gas emissions while helping homeowners save money on energy costs in the long term.

Learn more: OHPA Program - What Are Suitable Alternatives to Oil Heating?

Other Grants in Quebec and Across Canada

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Chauffez Vert Grant

The Chauffez Vert program, introduced by the Quebec government, supports households transitioning to greener heating systems. Since this type of conversion can involve a significant investment, the program offers financial aid to make it more accessible.

The grant, worth $1,275, is available if you replace your oil- or propane-fuelled heating system with an electric heating system.

For more details, visit our article: Everything to Know About the Chauffez Vert Program.

Rénoclimat

The Rénoclimat program encourages homeowners to reduce their home’s energy consumption. It begins with a home visit from an energy advisor, who conducts an energy audit.Based on the evaluation report, you'll learn what improvements are recommended to enhance your home’s energy performance. You must register for the program and schedule the advisor’s visit before beginning any work. Be sure to consult the list of eligible heat pumps and follow the criteria specific to the program you are applying to.

For more information, read: Home Renovation Grants in Quebec: The Rénoclimat Program.

Novoclimat

The Novoclimat program provides financial support for the construction of new homes with high energy efficiency, certified under Novoclimat standards. The grant is awarded to the contractor and the buyer for single-family homes or to the developer for multi-unit buildings.

Important Note:As of March 1, 2024, for Novoclimat and May 1, 2024, for Rénoclimat, the installation of an air-source heat pump is no longer eligible for financial assistance.

How to get a heat pump grant?

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To receive a grant for installing a heat pump, you’ll need to submit an application along with supporting documents. Requirements vary depending on the program you choose.Before applying, make sure you meet all the eligibility criteria.

Here are a few common eligibility conditions:

• You must be the owner and primary resident of a year-round, habitable home with a maximum of three storeys (excluding the basement),

• Your home must be located in Quebec,

• The installed equipment must be a heat pump, not just an air conditioner,

• Your new heat pump must appear on the list of eligible products, etc.

Financial Assistance to Make Heat Pumps More Accessible

Affordable heat pump financing programs offer an excellent opportunity for homeowners to enhance comfort without having to bear steep upfront costs. They encourage the adoption of greener, more economical technologies and contribute to a more energy-efficient future. Plus, they have a direct positive impact on heating and cooling costs for Canadian households.