Oil to Electric Incentive Program


Oil to Electric Incentive Program

Are you a homeowner who uses oil to heat your home? Great news! With the NEW Oil to Electric Incentive Program, qualified homeowners can receive an incentive up to $17,000* to help transition their homes from oil to electricity-based heat.

Over 90% of the electricity in Newfoundland and Labrador comes from clean, renewable sources. By switching to an electric heat source, you support a greener future for our province.

The NEW Oil to Electric Incentive Program is for whole home heating and is retroactive to April 1, 2023. Requirements have been modified from previous programs, so please review program eligibility carefully. Customers are required to use a participating installer to be eligible for an incentive. Incentives are paid directly to the installer. You’ll find more information about the Oil to Electric Incentive Program below.
As of October 26, 2023, Prime Minister Justin Trudeau has unveiled increased financial support for homeowners making the transition from oil-based heating to heat pump technologies (source: Delivering support for Canadians on energy bills | Prime Minister of Canada). Participants in the Income-Qualified Oil to Electric Incentive Program are now entitled to potential savings of up to an extra $5,000 when adopting central heat pumps, multi-split heat pumps, or mini-split heat pumps. Additionally, upon pre-approval of their applications, eligible individuals can receive a one-time payment of $250 from the Government of Canada. Further information will be shared on the website as it becomes available.


How to get started

Incentives can cover up to 100% of the cost of switching from oil to electricity. Your incentive is determined by the technology or technologies you’re installing, your income, and the number of people living in your household. Use the two charts below and follow these five steps to find out how much you could save:

Step 1:  Pick the technology you’re interested in.

Step 2:  Find that technology in the Available Incentive Table.

Step 3:  Find your adjusted net income on the Income Chart. If you aren’t sure, you’ll find it on line 23600 minus line 43500 of your most recent tax assessment.

Step 4:  Be sure to include the number of people living in your household! Use the Income Chart to determine if you are in the Income-Qualified column or the General column.

Step 5:  Go back to Available Incentive Table and see how much you could save!

Electric BoilerSave up to $10,000Save up to $5,000
Electric BoilerSave up to $10,000Save up to $5,000
Multiple Mini-Split Heat PumpsSave up to $13,000*Save up to $6,500
Multiple Split Heat PumpsSave up to $13,000*Save up to $6,500
Central Heat PumpSave up to $17,000*Save up to $9,000
*Homeowners that have already received funding (i.e., completed their journey) through the Canada Greener Homes Grant will have their incentive reduced by the amount of funding already received. For example, if you received $5,000 through the Canada Greener Homes Grant, you will only be eligible for up to $12,000 in grant funding through the Oil to Electric Incentive Program instead of up to $17,000.

Please carefully review the following chart to ensure you meet this program’s income eligibility requirement. Eligibility is based on the number of people living in your household* and the adjusted net income** of you and your spouse or common-law partner.

Number of Persons*Income-Qualified**General
1 person$32,500 or lessOver $32,500
2 persons$64,000 or lessOver $64,000
3 persons$91,000 or lessOver $91,000
4 persons$114,000 or lessOver $114,000
5 persons$119,000 or lessOver $119,000
6 persons$119,000 or lessOver $119,000
7 persons$119,000 or lessOver $119,000
For customers heated by propane, the incentive to convert to an electric furnace or boiler will correspond to the same incentive for electric boilers and furnaces under the income-qualified stream. When converting from propane to heat pumps, the incentive will align with the general stream amount for the corresponding heat pump technology. * The number of persons living in the home is defined as the homeowner(s) (a maximum of two) and any other individuals living in the household year-round at the time of application. ** Defined as notice of tax assessment form line 23600 (net income) less line 43500 (tax payable)

  • You must be the homeowner, and your home must have an active electricity account.
  • Eligible rental property owners can receive incentives through the general stream to help transition a maximum of two (2) rental properties from oil to electricity-based heat.
  • Your home must be on a permanent foundation, intended as a primary residence in Newfoundland and Labrador, and used year-round. New homes are not eligible.
  • Your home must be connected to the island or Labrador’s interconnected electricity grid.
  • If your home is heated by oil, a statement or copy of all oil receipts from your oil company for a consecutive 12-month period within three years of your application date that shows a minimum consumption of 1,000 liters of oil.
  • If your home is heated by propane, a statement or copy of all propane receipts from your propane company for a consecutive 12-month period within three years of your application date that shows a minimum consumption of 1,500 liters of propane.

Eligible activities include purchasing and installing eligible electricity heating technologies, electrical panel upgrades where necessary, and removing the oil tank.

The following technologies are eligible for an oil to electric incentive.

  • Mini-Splits, Multi-Splits, and Central Heat Pumps

    • Heat pumps must be listed as eligible equipment for the Oil to Heat Pump (OHPA) grant on Natural Resources Canada’s website.
    • Heat pumps must be a cold climate air source heat pump (ccASHP) including mini-split, multi-split or central heat pump that are approved and listed on Natural Resource Canada’s database for the zone in which they are being installed.
    • For heat pump systems, there is a requirement for whole-house heating. This will maximize energy savings. The installer will have to sign an attestation confirming installation is in compliance with this requirement to avail of the incentive. Although mini-splits are an eligible technology, the whole home heating requirement effectively means less than 1% of houses can achieve whole home heating with a single mini-split. If your home is of a size that a participating installer believes whole home heating can be achieved with a mini-split, please contact Us for further information.
    • Electric resistance baseboard and convection heaters are not eligible, except for use as back-up heating in combination with a conversion to a heat pump.
    • IMPORTANT! Installing a heat pump without a backup heat source may void your home insurance. Please consult your insurance company before you install your new electric heat source to ensure it meets any requirements they may have. Here’s why: A ductless split heat pump is meant to be used in areas of the home with an existing heat source, such as baseboard heaters or an oil furnace. Since you are removing your current oil system, you will need a backup source if your unit is down or really cold outside. A backup heating source is required when outside temperatures become too cold for the heat pump to extract heat efficiently. Mini and multi-split heat pumps can only heat a portion of your home in the area where the indoor head of the unit is installed
  • Electric Furnace

  • Electric Boile
    • Where space heating is the primary load.
    • Baseboard heaters and convection heaters cannot be primary heating source. In some circumstances, purchasing and installing electric hot water boilers may be eligible.
    • If you install two technologies, eligible customers will receive one incentive for the higher-cost technology.

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