Program and offer information checked October 26, 2026. This guide is general information, not an approval, funding reservation or promise of savings. Government programs and Greenfoot commercial offers are separate. Eligibility, approved equipment, installation requirements, funding and terms apply. Confirm the current rules with the program administrator before committing to work.
There is a moment every oil-heated homeowner knows.
The gauge is getting low. Another delivery is coming. Another bill is coming with it.
For thousands of homeowners across Atlantic Canada and British Columbia, the question is changing from “How much oil do I need this winter?” to something much bigger:
Do I need oil at all?
More households are replacing oil furnaces and boilers with electric heat pumps built for Canadian winters.
The federal government estimates households moving from oil, propane or electric resistance heating to an eligible heat pump will save more than $1,400 per year on average. This is a government estimate across those heating types, not a measured Greenfoot customer average or a guarantee for your home.
The switch also adds something an oil furnace never provided: air conditioning.
Getting off oil takes more planning than hanging a mini-split on the wall, though. If the goal is to stop buying oil completely, you need to think about the whole house, electrical capacity, backup heat, the oil tank and the programs available where you live.
What Does “Getting Off Oil” Actually Mean?
There are two different types of oil-to-heat-pump projects.
Reducing Your Oil Use
You install one or more heat pumps and keep the oil furnace or boiler. The heat pump handles a large portion of the heating season. Oil remains available for colder weather or rooms the heat pump does not fully serve.
Your oil consumption drops, but you are still an oil-heated home.
Getting Off Oil Completely
The new electric heating system is designed to serve the whole home. The oil heating equipment is decommissioned or removed, the oil tank is dealt with properly, and any required electric backup heat becomes part of the new system.
Several rebate programs require a complete conversion. Newfoundland and Labrador’s Oil to Electric program requires a whole-home heating solution and proof of proper oil-tank removal. B.C. applicants should confirm the current fossil-fuel equipment removal requirements with CleanBC before choosing a project.
If your goal is to stop buying oil entirely, the heating design needs to start there.
Why Are Homeowners Leaving Oil?
Oil works. The issue is everything surrounding it.
You buy fuel before you use it. You depend on deliveries. You monitor a tank. The furnace gives you heat, but no summer cooling. Fuel prices also move independently from your home’s actual heating needs.
A heat pump changes the equation because it moves heat rather than creating all of its heat through combustion.
Natural Resources Canada explains how air-source heat pumps transfer heat between the outdoors and your home, providing heating in winter and cooling in summer.
The federal heat-pump announcement estimates average annual energy savings above $1,400 for households switching from oil, propane or electric resistance heating. Your result depends on the house, local electricity rates, oil consumption, equipment, weather and system design. Savings are not guaranteed.
Will Your Electricity Bill Go Up?
Yes. Your heat pump runs on electricity. After the switch, your electricity bill includes the energy previously supplied by hundreds or thousands of litres of heating oil.
Newfoundland and Labrador’s Oil to Electric program tells homeowners to expect higher electricity consumption after leaving oil.
The better comparison is old electricity bill + old oil bill versus new electricity bill with the heat pump.
Looking only at the electricity bill after conversion misses half the story. Include financing, maintenance, any remaining fuel use and project costs in your own comparison.
Can a Heat Pump Replace an Oil Furnace Completely?
Yes, when the system is designed for whole-home heating.
An open bungalow might work well with a multi-zone ductless system. A home with usable ductwork might be a candidate for a central heat pump. Other homes need several indoor zones or a mix of heat-pump equipment and electric supplementary heat.
The important question is not how many BTUs the brochure advertises. It is whether the system provides enough heat for your house at your local winter design temperature. That requires a proper heat-loss calculation.
Greenfoot covers the cost side in our guide to switching from oil heat to a heat pump.
What Happens During Extreme Cold?
Modern cold-climate heat pumps operate well below freezing. Whole-home design still matters.
As outdoor temperatures fall, your house loses heat faster. Heat-pump capacity also changes with outdoor temperature. A properly designed conversion accounts for that.
Depending on the home and system, supplementary heat might come from:
- Electric resistance elements inside a central air handler
- Electric baseboards in selected rooms
- A properly designed whole-home electric backup system
Newfoundland and Labrador’s Oil to Electric rules require central heat-pump backup systems to be permanently installed, electrically connected, properly sized and configured to operate automatically.
The point is not to hope the heat pump handles everything. It is to design the whole heating system before removing the oil system.
What Happens to the Oil Tank?
If you are getting completely off oil, the tank becomes part of the project. Do not treat tank removal as an afterthought.
Newfoundland and Labrador includes oil-tank removal among eligible Oil to Electric project expenses and requires proof of proper removal. Other program requirements and eligible expenses vary. Do not assume an old funding allowance still applies to a new application.
Your contractor should explain what happens to:
- The oil tank and remaining fuel
- Oil lines
- The furnace or boiler
- Venting
- Unused ductwork or hydronic equipment, where applicable
A true fuel switch deals with the old system as carefully as the new one. Ask what is included in the quote and what would cost extra.
Will You Need an Electrical Upgrade?
Sometimes. An oil furnace relies on oil for most of its heating energy. An electric heat pump shifts that load onto your home’s electrical service.
The contractor needs to look at your panel, service size and other major electrical loads. That becomes especially important with a central heat pump, electric backup heat, electric water heating or future loads such as an EV charger.
Some programs support necessary electrical upgrades. Newfoundland and Labrador lists necessary panel upgrades among eligible Oil to Electric project expenses. In B.C., check the current Energy Savings Program for eligible electrical-service upgrades. Approval and limits apply.
Should You Insulate Before Getting Off Oil?
In an older house, this deserves serious attention. The less heat your house loses, the less heating capacity you need to replace it.
Better insulation and air sealing may reduce the required heat-pump capacity, reduce supplementary heating, improve comfort and lower annual electricity use.
This is why some programs consider heating upgrades alongside insulation and air sealing. The approved measures depend on the home and program.
If your attic, basement or walls need work, read how approved insulation programs can make an upgrade free or close to free. No-cost work requires program approval; it is not available to every household.
What Support Is Available in New Brunswick?
The federal Oil to Heat Pump Affordability advance-funding intake in New Brunswick closed on June 30, 2026. That does not mean all support disappeared.
SaveEnergyNB directs households toward its current programs. Households with annual income of $70,000 or less may qualify for no-cost upgrades through the Enhanced Energy Savings Program, subject to the home’s needs, program approval and availability.
SaveEnergyNB also lists heat-pump rebates of up to $2,000 through Total Home. Equipment, assessment and other program requirements apply. Do not treat a maximum as an approved amount for your project.
For a separate commercial option, compare Greenfoot’s current Gridless oil-switching offers for New Brunswick.
Commercial offer conditions: In NB, NS and PEI, choose up to $700 off instantly on qualifying Gridless systems OR 0% financing for six months plus $400 off instantly on qualifying systems. Offers cannot be combined. Qualifying residential systems only. Full system required. Financing available on approved credit. Conditions apply. These are commercial offers, not government rebates. Confirm current terms and any program compatibility before ordering.
What Support Remains in Nova Scotia?
Nova Scotia’s Oil to Heat Pump Affordability funding was fully allocated and closed to new applicants on July 2, 2026. Efficiency Nova Scotia still offers several paths.
HomeWarming
HomeWarming provides qualifying lower-income homeowners with approved no-charge efficiency upgrades. Improvements may include insulation, draft-proofing and heat pumps, depending on the home’s needs and program approval.
Moderate Income Rebate
The Moderate Income Rebate provides up to $5,000 across qualifying upgrades. Eligible homeowners may combine it with up to $5,000 through Home Energy Assessment, for a maximum of up to $10,000 across qualifying measures. This is not a guaranteed heat-pump rebate or an amount every household receives.
Outside those programs, see Greenfoot’s Gridless oil-switching offers for Nova Scotia. Choose up to $700 off instantly OR 0% financing for six months plus $400 off instantly on qualifying systems. Offers cannot be combined. Qualifying residential full systems only; financing on approved credit. Conditions apply. This is a commercial promotion, not government funding.
What Has Changed for Heat-Pump Programs in PEI?
The Government of Prince Edward Island confirms residential heat-pump rebates ended April 15, 2026. Applications for its previous free heat-pump and Oil to Heat Pump Affordability programs are also closed.
Islanders planning a new oil conversion should not rely on old rebate amounts in older articles and ads. Existing qualifying purchases may have different claim rules from new purchases.
The announced federal National Heat Pump Rebate is a separate upcoming program. Its application portal is expected in early 2027, with eligibility and installation-date rules. It is not an open PEI application today.
Compare Greenfoot’s current Gridless oil-switching offers for PEI: up to $700 off instantly OR 0% financing for six months plus $400 off instantly on qualifying systems. Offers cannot be combined. Qualifying residential systems only. Full system required. Financing on approved credit. Conditions apply. These offers are not government rebates.
Who Can Receive Up to $22,000 in Newfoundland and Labrador?
TakeCharge’s Oil to Electric Incentive Program is accepting applications. Qualified homeowners may receive up to $22,000 toward moving from oil to electric heating.
The $22,000 maximum is associated with the income-qualified central heat-pump option. It does not apply to every household or every heat-pump configuration.
The amount depends on heating technology, household income and household size. TakeCharge states incentives can cover up to 100% of eligible conversion costs, within the applicable program limits. Costs above approved amounts remain the homeowner’s responsibility.
Eligible technologies include mini-split, multi-split and central heat pumps, electric boilers and electric furnaces. The program requires a whole-home heating solution; one mini-split does not automatically qualify as a complete conversion.
Oil-heated applicants must provide evidence of at least 500 litres of oil consumption during a qualifying consecutive 12-month period within the previous two years, along with the other required documents.
Pre-approval and a participating installer are required. Proper oil-tank removal and applicable electrical work form part of the conversion requirements and eligible project scope. Approved customers have 180 days from pre-approval to complete installation and submit the required final documents; TakeCharge states no extensions will be given.
Explore Newfoundland and Labrador’s Oil to Electric rebate and request a Greenfoot quote.
NL rebate disclaimer: Newfoundland and Labrador only. Eligibility, income limits, approved equipment, whole-home requirements, eligible costs, deadlines and available funding apply. Up to $22,000 is a maximum, not a guaranteed payment or a promise of a free installation. Apply for pre-approval before proceeding. A Greenfoot quote is not a program application, approval or funding reservation. Greenfoot can walk you through the process; the program administrator determines eligibility and the approved incentive.
What Oil-to-Heat-Pump Support Is Available in British Columbia?
B.C.’s CleanBC Better Homes Energy Savings Program lists maximum heat-pump support of up to $13,000 for qualifying households. Rebate amounts depend on income, household size, the home and eligible equipment.
Do not assume that every system receives $13,000. Use the official oil-heated-home rebate tool to check your home’s details and current system-specific limits, registration and removal requirements.
Separate support may be available for qualifying electrical-service upgrades and other approved measures. Confirm all conditions with the program administrator before work starts.
Review Greenfoot’s provincial incentives information or request advice on a heat-pump system for your B.C. home.
BC disclaimer: Government approval and current program rules determine eligibility and payment. Maximums are not guaranteed and funding may change. The NB, NS and PEI oil-price campaign linked elsewhere in this article does not apply to British Columbia or Newfoundland and Labrador.
What About the New Federal Heat Pump Rebate?
On October 8, 2026, the Government of Canada announced a National Heat Pump Rebate. The official federal program update, modified October 23, says the online application portal is expected to open in early 2027.
Announced support is up to $10,000 for eligible low- to median-income households, or $2,000 for other eligible households.
The government states the retroactivity period begins November 1, 2026, for households and installations meeting the program’s eligibility criteria. It says more details, including eligible equipment and how to apply, will be available as of November 1.
This is not an open application or guaranteed funding today. Do not assume any purchase, installation date or combination with another incentive qualifies. Check the official rules before making a rebate-dependent purchase. Greenfoot cannot approve or reserve this funding.
Read Greenfoot’s introduction to the announced Canada Heat Pump Rebate, and use the official update above for the latest timing and eligibility information.
Is the Old Oil to Heat Pump Affordability Program Still Open?
Older articles still rank prominently online. The federal Oil to Heat Pump Affordability Program, often called OHPA, stopped accepting new direct federal applications on July 31, 2026. Provincial delivery partners had their own closure dates.
Existing approved participants may still have completion deadlines. A new homeowner should not assume the old $10,000 to $15,000 funding remains open. The new National Heat Pump Rebate is a separate program, and Newfoundland and Labrador’s current TakeCharge intake has its own rules.
Should You Wait for a Rebate Before Getting Off Oil?
If your furnace is working and replacement is not urgent, comparing current and upcoming programs makes sense. If your oil furnace fails in January, the calculation changes. You still need heat.
Do not install equipment based only on a promise that a future rebate will apply. Confirm equipment, dates, pre-approval requirements and any stacking restrictions before committing.
What Should You Ask Before Switching From Oil?
- How much oil did I use over the last 12 months?
- Is this a partial oil-displacement project or a complete fuel switch?
- What is my home’s calculated heat loss?
- What heating capacity does the proposed heat pump deliver at my local winter design temperature?
- How will closed bedrooms and distant rooms be heated?
- What provides supplementary heat during extreme cold?
- Does my electrical service need an upgrade?
- What happens to the oil tank and remaining fuel?
- Does the program require full removal of the oil system?
- Do I need pre-approval before installation?
- Which equipment models qualify?
- What will my estimated annual electricity use look like after conversion?
A quote that only lists the heat-pump model and price is not enough for a whole-home oil conversion.
Should You Keep Oil as Backup?
That depends on your goal. If you want to reduce oil consumption, keeping the existing furnace as supplementary heat is one option.
If you want to stop buying oil completely, the project needs another backup strategy where supplementary heat is required. Rebate rules matter too. Some oil-conversion programs require full removal of the primary oil system.
Newfoundland and Labrador’s Oil to Electric program is built around a complete transition to electric heating. B.C. applicants should confirm the current CleanBC removal requirements. Decide which type of project you want before choosing equipment.
Is Getting Off Oil Worth It?
For many oil-heated homes, the numbers deserve a serious look. The government’s average energy-savings estimate is not a prediction for your house, and provincial support is not automatic.
Newfoundland and Labrador’s maximum reaches $22,000 for an eligible income-qualified central heat-pump conversion. B.C. lists up to $13,000 in qualifying heat-pump support. NB and NS have other efficiency programs after their previous OHPA intake closed. PEI homeowners should not rely on its closed heat-pump programs for a new purchase.
The financial side is only part of the change. You stop scheduling oil deliveries. You stop watching the tank gauge. Your heating system also becomes your air conditioner.
And your home moves from buying and storing a delivered fuel to heating with electricity.
Getting Off Oil FAQs
Is it cheaper to heat a home with a heat pump than oil?
For many homes, yes. The federal government estimates average annual energy savings above $1,400 for households switching from oil, propane or electric resistance heating to eligible heat pumps. This is not a guaranteed saving or a Greenfoot customer average. Your result depends on oil use, electricity rates, the home, weather and equipment.
Can a heat pump completely replace an oil furnace?
Yes, when the system is designed for whole-home heating and includes an appropriate supplementary-heating plan for conditions where extra capacity is needed.
Do I have to remove my oil tank when switching to a heat pump?
Not every partial installation requires tank removal. Several full-conversion programs do. Newfoundland and Labrador’s Oil to Electric program requires proper oil-tank removal. In B.C., confirm current CleanBC equipment and tank removal rules before proceeding.
Will my electricity bill go up after switching from oil?
Yes. The heat pump uses electricity to provide heat previously supplied by oil. Compare your new electricity cost with your old combined electricity and oil costs, and include other project and operating expenses.
Do heat pumps work in Atlantic Canadian winters?
Cold-climate heat pumps are designed for low outdoor temperatures. Correct sizing, room-by-room coverage and supplementary heat matter more than choosing a unit only by its lowest advertised operating temperature.
How much is the Newfoundland and Labrador oil-to-electric rebate?
The maximum is up to $22,000 for an eligible income-qualified central heat-pump conversion. Other technologies and income levels have different limits. Pre-approval, whole-home conversion, a participating installer, eligible costs and funding conditions apply. A quote does not secure funding.
How much is the B.C. oil-to-heat-pump rebate?
The CleanBC Better Homes Energy Savings Program lists heat-pump support up to $13,000 for qualifying households. The actual amount depends on household income, home details, eligible equipment and current program rules. Check the official oil-heated-home rebate tool before starting work.
Are oil-to-heat-pump rebates still available in New Brunswick?
The previous OHPA advance-funding intake is closed. SaveEnergyNB lists heat-pump support through Total Home, while qualifying households with income of $70,000 or less may receive approved no-cost efficiency upgrades. Current eligibility and availability apply. Greenfoot’s separate NB commercial offers are not government rebates.
Are oil-to-heat-pump rebates still available in Nova Scotia?
The previous OHPA funding is fully allocated and intake is closed. HomeWarming, the Moderate Income Rebate and Home Energy Assessment provide other possible support, subject to eligibility and approved measures. Greenfoot’s separate NS commercial offers are not government funding.
Are PEI heat-pump rebates still available?
PEI’s residential heat-pump rebate ended April 15, 2026, and its previous free heat-pump and OHPA applications are closed. The announced federal rebate is a separate upcoming program. Greenfoot’s current PEI commercial offers have their own terms and are not government rebates.
What is replacing the old federal Oil to Heat Pump Affordability Program?
Canada has announced a separate National Heat Pump Rebate, with up to $10,000 for eligible low- to median-income households or $2,000 for other eligible households. The official update says applications are expected in early 2027 and a November 1, 2026 retroactivity start applies only to qualifying households and installations. Funding is not guaranteed.
Ready to Stop Buying Oil?
Getting off oil is more than buying a heat pump. The right project looks at the whole house, heat loss, electrical capacity, backup heating, insulation, oil-tank removal and the rules in your province.
Greenfoot installs cold-climate heat pumps and whole-home heating systems across New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and British Columbia.
- Newfoundland and Labrador: Explore the Oil to Electric rebate and request a quote. Eligibility, pre-approval and available funding apply; the maximum is not guaranteed.
- New Brunswick, Nova Scotia and PEI: Compare the two Gridless oil-switching offers and request a free quote. Offers cannot be combined. Qualifying residential full systems only, financing on approved credit, conditions apply. Commercial offers, not government rebates.
- British Columbia: Ask about the right heat-pump system for your home and confirm current CleanBC eligibility. The Atlantic oil-price campaign does not apply in B.C.
If you are still comparing costs, start with the cost of switching from oil heat to a heat pump.
Important disclaimers: Program details, amounts, income thresholds, deadlines and availability can change. The administrator’s current terms govern. Maximum incentives and “up to 100%” coverage are limited to approved eligible costs and do not mean every installation is free. Customers remain responsible for unapproved costs and required applications. Greenfoot can walk customers through the process, but does not determine or guarantee rebate approval. Energy savings vary and are not guaranteed. Commercial offer amounts apply only to qualifying residential full systems; up to $700 off OR 0% financing for six months plus $400 off cannot be combined. Financing is subject to approved credit and full lender terms; do not assume a 0% rate continues after the promotional period. No government/commercial stacking is promised. This guide and a quote are not funding approval, a reservation or an application.