Oil to Heat Pump Affordability (OHPA): Up to $25,000 in Ontario

If you still heat your home with oil — common in older homes, rural properties and cottage-country areas outside the natural-gas network — there is a program built specifically for you, and it is the single most generous home-heating incentive in Ontario right now.

The question we hear most: “How much can I really get to switch off oil?” The honest answer for an eligible Ontario homeowner in 2026 is up to $25,000. Here’s how that works.

What is the OHPA program?

The Oil to Heat Pump Affordability (OHPA) program is a federal initiative from Natural Resources Canada. Its purpose is narrow and clear: help homeowners who currently heat with oil replace that oil system with an eligible heat pump.

On its own, OHPA offers eligible homeowners up to $10,000 in federal funding for the switch. That federal amount is designed to cover a large share — sometimes all — of the cost of a basic heat pump installation for a lower-income, oil-heated household.

Why Ontario homeowners can get up to $25,000

Here is the part that makes Ontario special. As of September 9, 2025, OHPA is co-delivered in Ontario by the Independent Electricity System Operator (IESO). With that co-delivery, eligible Ontario homeowners can access increased support of up to $25,000 to move off oil and onto a heat pump.

That higher ceiling reflects the combined federal funding plus the Ontario top-up delivered through the IESO. For a homeowner who has been dreading a five-figure heat pump quote, this can change the entire calculation — and in many cases brings the out-of-pocket cost down dramatically.

Who qualifies?

OHPA is income-tested and oil-specific. According to Natural Resources Canada’s eligibility criteria, you generally need to meet conditions including:

• Household income at or below the median (after-tax) income. This is an affordability program, so it targets lower- and moderate-income households rather than everyone.
• Proof that you actually heat with oil — specifically, recent receipts showing the purchase of at least 500 litres of heating oil in the 12 months before you apply.
• Your home must be your primary residence, and other standard program criteria apply.

Because the income and documentation rules are firm, it’s worth gathering your paperwork early: recent oil-delivery receipts, your most recent tax information, and proof the home is your primary residence.

How OHPA differs from the regular heat pump rebate

It’s easy to confuse the programs, so here’s the simple distinction:

• Oil-heated home, income-eligible? OHPA is almost certainly your path — up to $25,000 in Ontario.
• Heated by gas, electricity, propane or wood? You’re in the Home Renovation Savings Program lane instead (roughly $500 per ton for gas homes and $1,250 per ton for non-gas homes, up to $12,000). We cover that fully in our 2026 Ontario heat pump rebate guide.

You generally pursue one path or the other, not both for the same equipment — and OHPA’s ceiling is far higher, which is why oil-heated homeowners should always check OHPA first.

A note on the closed federal grant

If you’ve read older articles promising a federal Canada Greener Homes Grant of $7,500, that program is closed — the last day to submit documents was December 31, 2025. OHPA is separate and very much active. Don’t let outdated information stop you from claiming money you may genuinely be entitled to.

Why a heat pump makes sense off oil specifically

Beyond the rebate, oil is one of the more expensive and higher-carbon ways to heat a home. A cold-climate heat pump moves heat instead of burning fuel, and NRCan field testing shows a properly specced unit keeps a coefficient of performance near 2.0 even at −25°C — comfortably below a typical Ontario winter low. So you’re not just getting a cheque; you’re replacing an expensive, dirty heat source with an efficient one. If you’re unsure whether a heat pump can handle your winters, read our deep dive on whether heat pumps work in a Canadian winter, and our installation cost guide for real pricing.

Let AeroFusion confirm your eligibility and do the paperwork

OHPA has specific documentation and assessment requirements, and the application has to be done right to release that up-to-$25,000 in funding. We install cold-climate heat pumps across the GTA and handle the program paperwork as part of the job.

If you heat with oil, book a free quote and we’ll check your eligibility, size your home correctly, and give you an honest, rebate-aware number — often within the hour. You can also review our current heat pump rebate offer for more detail.