Heat pumps and hybrid heating systems have been an increasingly hot topic of conversation across Canada over the last year, especially in Ontario. Why has this been? Between rising energy bills and costs of living, homeowners are looking for alternative ways to heat and cool their homes, leave less of an environmental impact, and save more money every month along the way.
With the government of Canada offering affordability programs to help ease the cost of purchasing and installing heat pump systems, switching to a different heating and cooling system is easier than ever. This article will go over rebates available in Canada, the pros and cons of getting a heat pump system, why there is any controversy around heat pumps, and the oil-to-heat pump affordability program that is available across the country – to help you become better informed about heat pump systems with information that is the most up to date and current.
Heating with natural gas, heating pump systems, and hybrid systems all have their pros and cons.
Why there is controversy around heat pumps in Canada
The issue with any heating and cooling type systems and the differences between them is highly based on location, especially across Canada where the price of energy per province varies wildly since they are highly dependent on the natural resources available in each region. Electricity for example is cheaper in hydro-abundant provinces such as Quebec and B.C., while natural gas tends to be less expensive where natural gas is abundant, such as in Alberta.
The energy forecast and historical rates should be considered when calculating the cost-effectiveness of any future heating/cooling system setups and installations. Energy rates always have their share of unpredictability but the historical rates can and should be checked out to give you an idea of what to expect from future rates. If natural gas rates have been historically lower than electricity in your province, chances are higher that they will be lower than electricity prices in the years ahead.
According to an interview done by CTV News, there have been varying positives and negatives from homeowners about their heat pump systems and how they felt after changing to them. Most had no issues with their heat pump systems in the winters or summers, and others have had some issues in the prairies when the temperature dipped below -35 and they had to turn back on their baseboard heating for the particularly frigid nights. Others have had their heat pump systems for years, since 2009, and while it works great during the summers especially, it again has some issues. An important factor to note is ultimately temperature fluctuations, the home’s insulation and the maximum amperage of a home’s electrical services.
Oil-to-heat pump affordability program
The oil-to-heat pump affordability program offered across the country to Canadians who currently heat their homes, if qualified, may be eligible to receive a payment of up to $10,000 or up to $15,000 in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. The strengthened program makes it easier and more cost-effective for low-to-median households to switch from oil heating to a new, energy-efficient heat pump system.
Any current homeowners who are currently heating their homes with oil can transition to electric heat by installing an eligible heat pump system, whether it’s an air source, cold climate air source, or ground source. Making the switch can potentially help save thousands of dollars on heating bills every year while also reducing greenhouse gas emissions.
Available through the program, Canadian homeowners across Canada can get up to $10,000 for the purchase and installation of eligible heat pump systems, and any of the following associated eligible measures related to the installation:
- Necessary electrical and mechanical upgrades to your home for a new heat pump system
- Installation of outdoor piping loops for ground source heat pumps.
- Safe removal of oil tanks.
- Installation of a back-up electric heating system (as required.)
- Switching over any other oil-using household systems, such as an electric water heater (also where necessary.)
The eligibility criteria have been simplified to make it easier for homeowners to qualify, specifically:
- The proof of purchase requirement to qualify has been reduced by half, from 1000 litres of oil to only 500 litres.
- The list of eligible heat pumps has been expanded. Many air-source and ground-source heat pumps are now eligible.
- Increased the low-to-median income threshold to account for the latest inflation, which will result in more qualifying Canadian homeowners.
Nova Scotia, Prince Edward Island, and Newfoundland and Labrador have an extra $5,000 additionally available, where the program is co-delivered by their respective provincial governments. There is also another additional one-time payment of $250 as an incentive.
More information about the oil to heat pump affordability program is available on the Natural Resources Canada website, and if qualified, homeowners that are approved will receive a cheque. In most cases, it means that funds will be available in advance of having to pay for the related costs. Upfront payment is applicable for homeowners across Canada where the program is delivered by the federal government (not applicable in co-delivery jurisdictions.) For those homeowners residing in co-delivery jurisdictions, be sure to refer to your provincial/territorial program for its specific process.
Funding can also be combined with additional financial assistance from other existing federal, provincial, territorial, and utility programs.
The pros and cons of installing a heat pump in Canada
Like with anything, there will always be pros and cons. Heat pump systems are no different and it does vary wildly based on your location, how your house is set up, current heating system, and more. Based on the data, there are more pros than cons for changing from fossil-fueled heating system over to heating pumps and other kinds of eco-friendly systems. Central heating systems as well, have their pros and cons with hybrid heating/heat pump systems and for how they impact your bills and costs over the years.
Pros:
- Saves money each year on bills compared to using oil and gas.
- Energy efficiency. Air-source heat pumps use electricity to move heat from the outdoor air to indoor air, making them highly efficient. Heat pumps can, in fact, be up to 50% more efficient than traditional heating and cooling systems.
- Dual functionalities. Heat pumps can provide both heating and cooling, which means that they work all year round, as a versatile option. The other pro to this is that where the weather is especially temperamental and changes frequently, heat pumps really shine on keeping the temperature comfortable.
Cons:
- Upfront costs can be high. Heat pump systems typically cost more upfront than traditional fossil fuel-sourced heating and cooling systems. However, this one can be offset by energy savings and rebates available in your province/the oil-to-heat pump rebate program that is offered nationally across Canada.
- Noise is another con that can be mitigated depending on how your house is set up and where the pump systems are installed. They can be noisy when operating, which can be a problem for some homeowners. If the outdoor unit is placed near living spaces it may be annoying.
- A big con is that air source heat pumps are less effective in extremely cold climates as they rely on outdoor air temperature to operate. In areas with very low temperatures, a supplemental heating system may be necessary on extremely low days, such as when it hits -40 degrees Celsius and below, only for those frigid days at least.
Many Canadians have said that they haven’t had too many issues with their heat pump systems during the long winters, but it again does depend highly on location and weather fluctuations year round.
Related rebates available in Canada
Along with the oil-to-heat pump affordability program that is available across the country, each province has some heat pump system incentive-type programs and rebates that can better help homeowners with their transition over from fossil fuels to more efficient heat pump systems, reducing environmental footprints, and reducing bill costs.
British Columbia
Heat pump rebates (bchydro.com)
B.C. Hydro has several hybrid heat pump rebates available, starting from $1,000 and upwards to $6,000 depending on what is currently heating your home, if you are eligible.
Heat pump rebate options
| UPGRADE | REBATE AVAILABLE |
| Ductless mini-split heat pump HSPF (Region IV) ≥10, SEER ≥16 or, HSPF2 (Region IV) ≥ 8.5, SEER2 ≥ 15.2 Serves one zone | $1,000 |
| Ductless multi-split heat pump HSPF (Region IV) ≥10, SEER ≥16 or, HSPF2 (Region IV) ≥ 8.5, SEER2 ≥ 15.2 Serves multiple zones | $1,000 |
| Central ducted heat pump HSPF (Region IV) ≥10, SEER ≥16 or, HSPF2 (Region IV) ≥ 8.5, SEER2 ≥ 15.2 Serves multiple zones | $2,000 |
Currently heated by natural gas, oil or propane?
You could be eligible for up to $6,000 in combined heat pump rebates for switching to an electric heat pump. Rebates are available while funding lasts.
Alberta
ARE YOU ELIGIBLE FOR THE ALBERTA REBATE INCENTIVE? – Alberta Mountain Air Calgary
Alberta has an incentive program that must be applied to/looked into by yourself as a homeowner, though information keeps changing currently as several greener energy plans have been paused or are being discussed.
Saskatchewan
Rebates & Programs | SaskEnergy
Saskatchewan has several rebates available for retrofitting and upgrading your home into a hybrid heating set-up. Since there are many options available, it’s best to look for yourself on what rebate you can apply for or be eligible for.
Manitoba
Home Energy Efficiency Loan (hydro.mb.ca)
Manitoba Hydro has a home efficiency loan if you are eligible, that will grant benefits for upgrading your home to be more efficient, including hybrid heating systems.
Ontario
Supported by the Government of Ontario, this program offers homeowners in select areas up to $4,500 towards installing a hybrid heating system. Initially having launched in Sault Ste. Marie, St. Catherines, Peterborough, and London, it has since expanded to include Ajax, Barrie, Pickering, and Whitby. More locations are to come in the future.
Oil to Heat Pump Affordability program (canada.ca)
The OHPA Program is intended to help low-to-median income households transition to a hybrid heating system, offering federal grants up to $15,000 to eligible households, with additional supplementary provincial grants and a one-time bonus payment of $250.
Quebec
Grants for Heating and Cooling Systems in Montreal | Confort Expert Inc.
Hydro Quebec has a grant available, offering a financial incentive to purchase an eligible hydro heat pump. The amount of the rebate is up to $50 or $120 per thousand BTU of heating varies. More details are available on Hydro Quebec’s page as they are far more detailed and specific about installation, and etc.
Newfoundland
Newfoundland and Labrador will help cover the costs of heat pumps with the Electric Incentive Program that was announced in February, 2024. It does need to be applied to and currently 2,065 Newfoundland and Labradorians have looked to switch to hybrid heating.
Nova Scotia
Nova Scotia Heat Pump Rebate | Home Heating & Cooling (efficiencyns.ca)
Efficiency Nove Scotia has rebates available to help switch your home over to hybrid systems to offset the cost of new heat pumps and installing the systems right.
PEI
Energy Efficient Equipment Rebates | Government of Prince Edward Island
The government of PEI has rebates available if you are eligible, to offset heat pump installations and the eligible contractors that can get everything set up for you if you are living anywhere across PEI.
Territories
Home Improvements – Arctic Energy Alliance (aea.nt.ca)
The Arctic Energy Alliance provides rebates to help owners of older, less energy-efficient homes in the Northwest Territories to offset costs of upgrading not only hybrid heat systems, but also insulation, windows, air sealing, and heating systems.
