OHPA Program - What Are Suitable Alternatives to Oil Heating?

Are you a homeowner with an oil-fueled heating system? Note that replacing this type of heating system comes highly recommended. If it’s money that’s standing in your way, rest assured, there are financial assistance programs designed to help you achieve your goal. 

This article will cover the following questions:

• Why should you change an oil-fueled heating system?

• What heating system is a better alternative to oil?

• How much does it cost to switch out an oil-fueled heating system with a heat pump?

• Which financial assistance programs can help fund your project?

OHPA Requirements: Who Is Eligible for the Oil to Heat Pump Affordability Program/Grant in Canada?

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Given that oil-fueled heating systems are prevalent household features in several Canadian provinces, the federal government deemed it necessary to introduce a financial assistance program designed for homeowners claiming such a system. The OHPA—Oil to Heat Pump Affordability Program—is a program that was founded by the Canadian government, designed to encourage homeowners to part ways with their oil-powered systems, and turn to energy-efficient systems instead. 

The OHPA is available to homeowners residing in Alberta, Manitoba, New Brunswick, Ontario, Quebec, Saskatchewan, and the Northwest Territories. As for residents of British Columbia, Prince Edward Island, Nova Scotia, Newfoundland and Labrador, and Yukon, the OHPA program is also available, but under different conditions.

This government grant encourages Canadian homeowners to install a heat pump, with the purpose of replacing an oil-fueled system. The amount available is based on median income after taxes. Low-income households can get up to $10,000 as part of the OHPA program. 

Why Switch from an Oil Heating System to a Better Alternative?

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First and foremost, it’s for the sake of the environment. Oil heating generates a lot of pollution, increasing greenhouse gas emissions. Second, oil prices are widely unstable, given that it’s subject to market uncertainties (conflicts, international agreements, availability).

Since 2023, the province of Quebec has banned the purchase of all oil heating systems. Repairs will also be prohibited on devices with over 20 years of use. If you live in Montréal, note that as of 2030, using oil-fired systems will be prohibited. As such, if you own a home in said province, making the change will be mandatory. 

Even if oil heating is still widespread in some Canadian provinces, especially in Atlantic provinces, it remains an antiquated system that will become increasingly scarce.

With What Should an Oil Heating System Be Replaced?

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Electric heating is much more eco-friendly and less costly compared to oil. As such, oil heating systems are replaced with electric units. There are quite a few different electric heating devices retailed, such as baseboards, convectors, and gas-fired units.

However, in most cases, the most valued system is, without a doubt, the heat pump. This device is eco-friendly, cost-effective, and versatile, doubling as an air conditioning unit during the summertime. Homeowners can have a central heat pump installed with the related ductwork and air vents or wall-mounted units in different areas throughout the dwelling.

How Much Does It Cost to Replace an Oil Heating System?

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Prices hinge on the type of system you’re looking to install in its place. Costs range from $1,000 to $50,000 if you’re opting for a cutting-edge system (geothermal).

How Much Does It Cost to Convert an Oil Furnace to Electric?

To switch to a basic electric heating system, we’re talking about $4,000 to $8,000. If you prefer a heat pump, central systems can cost as much as $15,000. Note that you’re probably eligible for grants and tax credits. Moreover, your energy bills will be significantly less high compared to an oil-fueled system. 

Replacing Oil Heating: Other Available Funding or Rebate Programs

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Residential homeowners can access several financial assistance programs to help cover some of the costs involved in replacing an oil heating system. Grants, financing, interest-free loans: there’s no lack of options to consider! Here’s an overview of what’s available in 2025.

What Are the Available Grants or Rebates for Heat Pumps in 2025?

Planning on getting your home fitted with a heat pump? Besides the Chauffez vert and OHPA programs, look into the LogisVert Efficient Homes Programs (Hydro-Québec) and Novoclimat.

Chauffez Vert (Government of Quebec)

The Chauffez vert program, launched by the Government of Quebec, helps Quebec households transition toward a more eco-friendly heating system. This upgrade can be rather costly and, for it to be available to as many applicants as possible, individual funding has to be limited.

Chauffez vert enables homeowners to receive significant financial help to upgrade their oil-fueled or propane heating system with energy-efficient devices.

Available Programs for the Rest of Canada

If you reside in Nova Scotia, British Columbia, Ontario, Newfoundland, or elsewhere in Canada, note that provincial governments also offer grants and other funding to financially help homeowners. Check out official government websites for detailed information when planning the work needed.

Are There Any Other Financial Assistance Programs?

Additional financial assistance is made available, often through municipal funding. In Montréal, the RénoPlex Program enables small building owners to upgrade their heating systems.

Check with your local authority to learn more about eligibility requirements and how much you could receive through grant payments.

The Government of Canada also funds the Canada Greener Homes Grant, an interest-free loan program, allowing homeowners to receive between $5,000 and $40,000 in funding for energy-efficient home improvements and retrofits, courtesy of reliable technology.

FAQ About Upgrading Oil Heating Systems

When will the Chauffez vert program funding stop?

As of now, the Chauffez vert program hasn’t announced an end date. To confirm whether the program is still running, consult the Chauffez vert website prior to submitting an application.

When will the heat pump grant come to an end?

RénoClimat and Novoclimat’s sought-after cold climate, air-source heat pump grants were phased out in 2024. Before relying on a specific grant or funding option to finance the planned work, check eligibility requirements, including program start and end dates.

How to find a qualified contractor to replace an oil-fired heating system?

Don’t hire the first contractor to send you a project quote! Bear in mind that a lot of door-to-door salespersons attempt to present themselves as qualified contractors, however, the latter isn’t always true. Meet with two to three company representatives, compare quotes, and make sure the contractors are industry-certified.

How to apply for the heat pump rebate?

The application process is pretty straightforward. First, applicants are encouraged to reach out to local utility companies or government programs to confirm program eligibility. Second, put together a file containing all the required documents listed before submitting an application. Then, hire a licensed contractor to carry out the installation. Once the work is completed, apply online and be sure to include all the necessary information about the heat pump in question and wait for approval.  

What is the $250 heat pump bonus in Canada?

The $250 heat pump bonus is a reward offered to committed homeowners through the OHPA program.