Given the pressures faced by households and small businesses that use oil heating, the Prime Minister also announced that the government is moving ahead with a temporary, three-year pause to the federal price on pollution (fuel charge) on deliveries of heating oil in all jurisdictions where the federal fuel charge is in effect. This pause would begin 14 days from today. While the fuel charge is already returned to consumers through the pollution price rebate, this temporary pause would save a household that uses heating oil $250 at the current rate, on average, while the federal government works with provinces to roll out heat pumps and phase out oil for heating over the longer term.
Additionally, the federal government will work with provinces and territories to help people save money over the longer term by making it easier to switch to an electric heat pump to heat their homes. The Prime Minister announced the following new measures that will be piloted first in Atlantic Canada:
- An upfront payment of $250 for low- to median-income households, which will be available to those who heat their homes with oil and sign up for a heat pump through a joint federal-provincial government program.
- A strengthened Oil to Heat Pump Affordability program that will partner with provinces and territories to increase from $10,000 to $15,000 the amount of federal funding eligible homeowners can receive for installing a heat pump, adding up to an additional $5,000 in grant funding to match provincial and territorial contributions via co-delivery arrangements. This would make the average heat pump free for lower income households as we continue to minimize upfront costs and make federal programs even easier to access for all households.
On average, homeowners who switch from oil to cold-climate heat pumps to heat and cool their homes save up to $2,500 per year on home energy bills. Families are feeling the pressure on monthly bills. This new energy affordability package, along with the work the federal government is doing on everything from child care to housing, will get people the support they need and deserve.
“Today’s announcement is good news for Atlantic Canadians, rural Canadians, and people across the country. We are putting more money back in your pocket and making it easier for you to find affordable, long-term solutions to heat your home. These measures will help make a real difference.” – Justin Trudeau, Prime Minister of Canada