Expanded heat pump program helps British Columbians save on home-energy costs (2024)

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News Release Communiqué

Victoria

Monday, May 13, 2024 12:20 PM

Facts about the Oil to Heat Pump Affordability Program

Initiativessuch as theseincrease affordability for Canadiansand support the goal ofnet-zero emissions by 2050.

• The Oil to Heat Pump Affordability (OHPA) program was first introduced in November 2022 as a $250-million investment in a new stream in the Canada Greener Homes Initiative.
• On Feb.22, 2023, the program was opened to pre-registration and was fully launched in late March 2023, with the first grants issued shortly after.
• The Low Carbon Economy Fund (LCEF) supports help provincial and territorial initiatives to reduce emissions. This can include support for households to switch from oil or natural gas to heat pumps and increase energy efficiency.
• On average, homeowners who switch from oil to cold-climate heat pumps to heat their homes save between $1,500 and $4,700 per year on home energy bills.
• The Government of Canada has OHPA co-delivery arrangements in place with Newfoundland and Labrador, Nova Scotiaand Prince Edward Island.
• Anagreement with British Columbia is expected by May 31, 2024.
  • Government looks forward to co-delivering the program with other provinces and territories soon.
• The OHPA program has received nearly 14,000 applications nationally to date.
• Under Budget 2024, the Government of Canada is taking numerous steps to make life more affordable for Canadians while addressing climate change.
  • This includes the Canada Greener Homes Affordability Program, which will support the direct installation of energy-efficiency retrofits for Canadian households with low ormedian incomes.
• The number of households in B.C. with heat pumps has increased by approximately 80% since 2017, from an estimated 142,000 to 254,000.
  • In 2022, for the first time, the number of heat pumps shipped to B.C. (37,800) exceeded the number of natural gas furnaces shipped to B.C. (30,700).

What people are saying about the Oil to Heat Pump Affordability Program

George Heyman, B.C.’sMinister of Environment and Climate Change Strategy –

“All people in British Columbia want to reduce their home-energy costs and address the impacts of a changing climate — extreme weather, heat and cold — which is affecting all of us.Through cost-shared programs like the CleanBC Better Homes Energy Savings Program, people have access to affordable energy upgrade options that create cleaner, healthier, more comfortable home environments. With these new investments, we will reduce greenhouse gas emissions, reduce people’s monthly energy bills and contribute to a secure and more affordable future for British Columbians.”

Steven Guilbeault, federal Minister of Environment and Climate Change Canada –

“Installing a heat pump or energy-efficient windows and doors in your home is one of the best ways to save on your monthly energy bills while reducing the pollution that causes climate change. The Government of Canada is committed to help British Columbians adapt to the costly climate impacts this province knows too well, while doing their part to affordably reduce carbon pollution, in close partnership with the provincial government.”

Jonathan Wilkinson, federal Minister of Energy and Natural Resources Canada –

“Making the switch to more energy-efficient heating systems can help Canadians save thousands on their energy bills, reduce their energy use, and decrease their carbon footprint. That’s why we are strengthening the Oil to Heat Pump Affordability program and ensuring that families are supported in making the switch from heating oil to efficient heat pumps.”

Chelsea Brandt, general manager, RedBlue Heating and Refrigeration –

“British Columbia's provincial rebate programs empower residents and businesses to transition to energy-efficient heat pumps, reducing reliance on fossil fuels and lowering carbon emissions. These incentives not only cut energy costs but also stimulate local economies by driving demand for installation services and manufacturing of green technologies. Ultimately, they foster a sustainable future while benefiting both individuals and businesses through improved comfort, affordability, and environmental stewardship.”

Evan Pivnick, program manager, Clean Energy, Clean Energy Canada –

“The cost of living in B.C. is feeling higher than ever, and the energy bills British Columbians pay for fossil fuels are no small part of this. That is why today’s announcement of up to $250 million in joint federal and provincial funding to make heat pumps more accessible is such welcome news. Heat pumps are the lowest-cost option for heating and cooling for a majority of homes in Canada. In B.C., this funding will bring those costs down even more, helping households across the province access this cost-saving, climate-friendly technology.”

Graham Anderson, director, Community Energy Initiative, Ecotrust Canada –

“Energy-efficiency retrofits are the only lasting solution to high energy bills and extreme heat in homes. We are thrilled to see the B.C. government step up its incentive to more completely cover the cost of a heat pump for many lower-income British Columbians. This program will make it possible for thousands of households to enjoy safer, more comfortableand more affordable homes.”

Brendan Haley, senior director of Policy Strategy, Efficiency Canada –

“Eighteen per cent of B.C. households spend more than 30% of housing costs on energy, and improving energy efficiency will result in lasting cost savings. This combination of federal and provincial funding will expand access to heat pumps, while also supporting upgrades to insulation and ventilation that will cut bills and improve comfort. This comprehensive set of energy-efficiency improvements, across different heating sources, will provide real solutions to people’s affordability and health challenges.”

George V. Harvie, board chair, Metro Vancouver –

“In Metro Vancouver, we are seeing more extreme heat events, so every building needs a plan to add cooling systems to safeguard occupant health and improve comfort. Shifting to using high-efficiency electric heat pumps to heat and cool homes will help us move toward a more resilient, sustainable future. Our Climate 2050 plan calls for widespread electrification of existing buildings in the region, and we’re pleased to see the Province of B.C. and Government of Canada making it easier for all of our residents to afford electric heat pumps.”

Graeme Hutchison, president, MoveUP –

“MoveUP commends the B.C. government for taking action to make life more affordable in B.C. This new program will make it possible for lower- and middle-income people to afford a heat pump in their homes, saving them thousands of dollars for the installation while lowering their energy bills. This shows Premier Eby's commitment to making life more affordable for workers and their families and demonstrates decisive action to combat climate change while strengthening B.C.’seconomy.”

Ian Cullis, director, Asset Management, BC Non-Profit Housing Association –

“We are pleased to see a funding increase to support lower-income B.C. residents install high-efficiency heat pumps. The addition of a top-up for northern B.C. residents in this program will be a significant benefit for individuals and families who face high heating costs through the winter. Making heat pumps accessible to more non-profit housing tenants will reduce the risks associated with extreme heat and cold spells for low-income residents and generate energy-efficiency gains that will benefit everyone in B.C.”

New, improved support for heat-pump, energy-efficiency upgrades

The Province is providing improved support to even more people in British Columbiawho need affordable, efficient, clean-energy upgrades – including electric heat pumps – for their homes.

Part of the Province’s CleanBC plan, the Better Homes Energy Savings Program builds on the success of and replaces the former CleanBC Income Qualified Program that currently offers rebates to make fuel-switching and energy-saving upgrades more affordable for low- ormoderate-income households.

New federal and provincial funding is enabling key program enhancements:

• expanding program eligibility to add middle-income households;
• providing rebates for 100% of the cost of a new heat pump, up to a cap that varies by the type of heat pump (central, multi-split or mini-split).
  • This means that households may be eligible to receive a free heat pump from the program;
• increasing the maximum rebate amount for heat pumps from $9,500 to $16,000.
  • This is an increase of approximately 70% from the previous program;
• providing an additional top-up of up to $3,000 for people living in northern B.C. who are switching from natural gas, propane or oil heating to an electric heat pump; and
• increasing the maximum rebate amount for electrical service upgrades needed to install a heat pump from $3,500 to $5,000.

All British Columbians who own an eligible home (or renters that have their landlord’s permission), meet income qualification requirementsand have a residential-utility account with BC Hydro, FortisBCor a municipal utility will be able to access the program.

Participants will not need to pay up front for heat-pump installations and other efficiency upgrades. Applicants pre-register for the program to verify their eligibility. Once upgrades are completed by a program-approved contractor, the contractor submits the final rebate application and deducts the rebate amount from the final cost of the upgrade.

The program is income-tested with maximum rebate amounts for heat pump installations varying with household income and size, as outlined by the table linked below:
https://news.gov.bc.ca/files/MaximumRebatesHeatPumps.pdf

British Columbians will be able to apply to the new Better Home Energy Savings Program starting on June 18, 2024.

The program will also continue to provide support for other home-efficiency upgrades at current rebate levels – including insulation, windows and doors, and ventilation. It will also provide rebates of as much as $5,000 for households switching from electric baseboards to electric heat pumps, funded by BC Hydro’s energy-efficiency measures.

For British Columbians living in apartment buildings or social housing, the CleanBC Better Buildings program includes "whole-building"rebates to support fuel switching from fossil fuels and energy-efficiency upgrades.

The Province and BC Hydro areworking together to develop a new program for British Columbians wanting to install heat pumps in individual apartment suites, to be launchedthis year.

• HeatPumpProgram_Chinese(traditional).pdf

• HeatPumpProgram_French.pdf

• HeatPumpProgram_Punjabi.pdf