Canada and Manitoba add grants for heat pumps to transition Homes from oil heating

New grants for heat pumps in Manitoba

Homeowners in Manitoba have a new opportunity to upgrade their heating systems while saving on energy costs, thanks to a joint investment from the federal and provincial governments. The Oil to Heat Pump Affordability (OHPA) program is expanding in Manitoba, with nearly $7.9 million in federal funding and up to $2.6 million from the province to help residents transition from oil-based heating to high-efficiency heat pumps.

Heat pumps offer a more sustainable and cost-effective solution for home heating and cooling, providing year-round comfort while significantly reducing energy consumption and carbon emissions. The program targets low- to median-income households, offering up-front financial assistance of up to $20,000 for the purchase and installation of a heat pump. Participants also receive a one-time $250 heat pump bonus to help offset transition costs.

Efficiency Manitoba, the province’s Crown corporation focused on energy efficiency, will support the initiative with outreach, marketing, and financial contributions toward the installation of cold-climate air source and ground-source heat pumps (geothermal heating systems).

Grants targeted at homes with oil fired heating systems

“This partnership between the federal and provincial governments ensures that more Manitoba families can access affordable, energy-efficient heating solutions while lowering greenhouse gas emissions,” said Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources. “By replacing expensive oil furnaces with heat pumps, homeowners can enjoy significant savings on energy bills.”

Manitoba’s Environment and Climate Change Minister, Mike Moyes, emphasized the affordability aspect of the program: “We are committed to helping Manitobans save on energy costs while contributing to our climate goals. With this initiative, we are working toward our target of supporting 5,000 households in making the switch to heat pumps.”

The grants for heat pumps and geothermal are helping homeowners in Canada

Since its initial launch in 2022 under the Canada Greener Homes Initiative, the OHPA program has helped thousands of homeowners across the country reduce energy costs. Nationally, participating households save an average of $1,337 per year on energy bills and cut carbon emissions by 2.78 tonnes annually. To date, the program has received over 38,700 applications nationwide and has reduced greenhouse gas emissions by the equivalent of taking 11,574 cars off the road.

The OHPA program operates in several provinces and territories, including British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Yukon, with discussions ongoing to expand it further.

Who are eligible for the heat pump and geothermal grants in Manitoba?

In Manitoba, homeowners looking to switch from oil, propane, or natural gas heating to energy-efficient heat pumps - or those planning to install geothermal systems - may qualify for financial incentives. To be eligible, applicants must meet specific criteria and work with certified contractors.

Eligibility breakdown:

Who can apply:

• Homeowners: Manitoba residents transitioning froml oil-based heating to clean heating like high-efficiency heat pumps or geothermal systems may receive financial support.
• Small businesses: Certain small businesses may also qualify for heat pump installation incentives.
• New farm buildings: Newly constructed farm buildings may be eligible for financial support.
• Low-to-median income homeowners: Those in this category participating in the Oil to Heat Pump Affordability program can receive a one-time $250 bonus to assist with transition costs.

Eligible installations:

• Heat pumps: Homeowners replacing fuel oil, propane, or natural gas heating systems with heat pumps may qualify for financial aid.
• Geothermal systems: Those installing geothermal heat pumps can receive tax credits.

Key requirements:

• Certified contractors: All installations must be carried out by a contractor registered with Efficiency Manitoba and accredited by the Manitoba Geothermal Energy Alliance (MGEA).
• Equipment standards: The heat pump must meet program criteria and all technical specifications.
• Canadian purchase Requirement: Eligible equipment must be bought within Canada.
• Installation compliance: Ground source heat pump installations must adhere to the latest CSA C448 standard for design and installation.

The advantages of air source heat pumps and geothermal heating 

For eligible Manitoba homeowners, this funding presents a valuable opportunity to transition to a cleaner, more efficient heating system while reducing both costs and environmental impact. More details on eligibility and application procedures are available on the Government of Canada’s website.

Both air source heat pumps (ASHPs) and geothermal heat pumps (GHPs) offer energy-efficient heating and cooling solutions that reduce costs and environmental impact.

• Air source heat pumps (ASHPs): These systems extract heat from the outdoor air, even in cold temperatures, to efficiently warm homes in winter and cool them in summer. They are affordable to install, require minimal space, and significantly lower energy bills compared to traditional heating systems.
• Geothermal heat pumps (GHPs): Also known as ground-source heat pumps, these systems use the stable underground temperature to provide consistent, highly efficient heating and cooling. While the initial installation cost is higher, GHPs offer greater long-term savings, reduced maintenance, and a smaller carbon footprint.

Read more about the differences between the two here, to determine which is a better fit for your home. Both systems improve home comfort, reduce reliance on fossil fuels, and contribute to lower greenhouse gas emissions.