Making Home Heating More Affordable for Ontarians

VAUGHAN, ON, Sept. 20, 2025 /CNW/ - Canadians are looking for practical ways to reduce their energy bills and make their homes greener. Through the Oil to Heat Pump Affordability (OHPA) program, the Governments of Canada and Ontario are working together to help income-qualified households make the switch from oil heating to more affordable, energy-efficient electric heat pumps. Already, tens of thousands of Canadians have saved an annual average of over $1,300 and 2.78 tonnes of greenhouse gas — together that's the equivalent of taking 17,000 cars off the road.

Today, the Honourable Julie Dabrusin, Minister of Environment and Climate Change, on behalf of the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced a new partnership with the Independent Electricity System Operator (IESO) to co-deliver the OHPA program in Ontario, supported by an investment of nearly $37.5 million from the Government of Canada. Through the IESO's Save on Energy program, homeowners will now have a streamlined, one-stop experience to access funding.

This collaboration will make it easier for income-qualified households to benefit from up to $25,000 in funding ($15,000 in federal funding and $10,000 in provincial funding), plus an upfront payment of $250, to help cover the cost of switching to a heat pump. Heat pumps cut bills and emissions, providing efficient year-round heating and cooling. They are two to three times more efficient than electric furnaces, saving homeowners money while reducing grid demand.

Together, we are helping Canadians lower their energy bills, cut emissions and build a cleaner, more-secure energy future. By making the switch to heat pumps easier, we're protecting households from rising costs, strengthening our resilience to climate change and creating good-paying jobs that support a stronger economy for generations to come.

Quotes 

"The Oil to Heat Pump Affordability program is about lowering energy bills for Canadians while fighting climate change. By working with Ontario and IESO, we are delivering practical solutions that make life more affordable today while building a cleaner, stronger economy for tomorrow."

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

"Families across Ontario deserve home heating that is affordable, reliable and clean. By partnering with the province and the IESO, we're making it easier for households to switch from expensive oil to efficient heat pumps that lower bills and cut emissions. Ontario families will feel the difference on their monthly energy bills and in the comfort in their homes year-round while contributing to the fight against climate change."

The Honourable Julie Dabrusin
Minister of Environment and Climate Change

"This partnership puts affordable heating within reach for Ontario families, as we deliver affordable energy for families and seniors. By helping households switch from oil to electric heat pumps, we're cutting energy bills — which is what matters most. This is another step forward after our government launched the largest energy savings program in Canadian history. That includes launching Ontario's Home Reno Savings program to help families save more of their hard-earned money."

The Honourable Stephen Lecce 
Ontario Minister of Energy and Mines

"Access to reliable and affordable electricity is more essential than ever for families to keep their lights on, to power their devices and to keep their homes comfortable. That is why the Oil to Heat Pump Affordability Program is a critical addition to the IESO's suite of Save on Energy programs that ensure that families in Ontario can access energy-efficient heat pumps to help lower their energy bills and keep their homes comfortable throughout the year."

Lesley Gallinger
President and CEO, Independent Electricity System Operator

Quick Facts

• Applications to the Ontario program are now available directly from IESO: Energy Affordability Program | Save on Energy
• EnviroCentre is also contributing funding to ensure residents in Cornwall, Ontario, outside of the IESO grid can also participate.
• The total value of the OHPA Ontario agreement is up to $59.4 million:
  • Government of Canada: $37.5 million
  • IESO: $21.4 million
  • EnviroCentre: up to $500,000
• The Oil to Heat Pump Affordability program was launched in November 2022 as part of the Canada Greener Homes Initiative. Pre-registration opened in February 2023, with grants flowing by spring 2023.
• The federal government announced program enhancements in October 2023, including:
  • Increasing the overall program investment from $250 million to $750 million.
  • Increasing the amount that can be claimed by eligible homeowners through OHPA for installing a heat pump to $15,000, in addition to the $5,000 plus supplementary provincial and territorial contributions via co-delivery arrangements.
  • A $250 Canada Heat Pump Bonus upfront payment
• Ontario is the eighth jurisdiction to join the OHPA co-delivery model, following agreements with all four Atlantic provinces, Manitoba, British Columbia and Yukon. In jurisdictions without co-delivery arrangements, oil-heated households can apply to the national program to receive up to $10,000 in federal OHPA funding for switching to electric heat pumps.

Related Products

• Energy Affordability Program | Save on Energy
• Oil to Heat Pump Affordability program
• Canada Greener Homes Initiative
• Canada Greener Homes Affordability Program 
• Canada Green Buildings Strategy
• Electric heat pumps

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SOURCE Natural Resources Canada