Heating with oil? What the Ontario heat pump rebate asks of you
Oil-heated homes are in the higher Home Renovation Savings heat pump rebate group, with a few extra rules. Here is what the official pages say about sizing, your oil tank and the federal programs.
If your home is heated with oil, Home Renovation Savings puts you in the higher heat pump rebate group. It also has a few rules that apply only to oil-heated homes. Here is what the official pages say today.
Which rebate group you are in
Home Renovation Savings is the Ontario program open now. It is brought to you by Enbridge Gas and Save on Energy. The heat pump rebate depends on how you heat your home now.
An oil-heated home is in the electricity, oil, propane or wood group. To be in that group, your home must be connected to the Ontario electricity grid.
- A cold climate air source heat pump gets $1,250 per ton, up to $7,500.
- A ground source heat pump gets $2,000 per ton, up to $12,000.
For an air source heat pump, the tons come from the minimum rated heating capacity at 8.3°C (47°F). The program gives an example: a unit rated at 3.2 tons gets $4,000 in an oil-heated home.
The sizing rule for oil homes
Oil-heated homes must size the electric heating system to fully offset the oil heating load. That system is the heat pump, plus electric resistance backup heat if it is needed.
This is a job for your contractor at the planning stage, before the pre-installation application goes in. For more on how sizing works, see our sizing guide.
Your old furnace and oil tank
You do not have to remove your existing oil system to get the rebate. That includes the furnace or boiler, fuel piping and related equipment.
But you must move your heating to an electric heat pump. And where other laws require it, you must work with a TSSA registered contractor to empty or remove your oil tank and its piping. This covers both above ground and underground tanks.
The usual rules still apply
- You must own the home. Where an owner has tenants, the owner must apply.
- The home must be a single detached, semi-detached, row house, townhome, or mobile home on a permanent foundation.
- It must be the first space heating heat pump in the home. Replacing an existing heat pump is not eligible.
- The model must be on Natural Resources Canada's qualified products list.
- The contractor must be a participating contractor, registered and listed before the installation.
- Pre-approval is mandatory. Installations done before approval are not eligible.
Once the post-installation application is approved, the cheque should arrive by mail within 60 days.
Federal programs for oil homes
The federal Oil to Heat Pump Affordability program is closed. July 31, 2026 was the last day to apply.
The federal National Heat Pump Rebate was announced on October 8, 2026. The federal government says households can be eligible for $2,000, or up to $10,000 for low- to median-income households. It says an online portal will open in early 2027, and that the retroactivity period starts on November 1, 2026.
Rebate amounts, eligibility rules, eligible heat pumps and how to apply are to be published as of November 1, 2026. Until then, the federal rules are not decided in public. Home Renovation Savings is the program you can apply to today. For its full steps, see Home Renovation Savings, explained.
If you heat with oil and want to see where you stand, you can check your rebate and ask for a free quote, with no obligation.
This post is based on this article.