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A Look At The Oil To Heat Pump Affordability Grant

The Government of Newfoundland and Labrador, in collaboration with the Government of Canada, has announced a significant initiative to support residents in transitioning from oil heating to electric home heating systems such as heat pumps, electric furnaces, and electric boilers. This initiative is part of a broader effort to reduce greenhouse gas emissions, promote energy efficiency, and provide economic development opportunities.

Key Points of the Federal-Provincial Agreement

  • The agreement aims to assist over 40,000 households in the province to switch from oil to electric heating.
  • It includes a new Oil to Electric Incentive Program with rebates retroactive to April 1, 2023.
  • The program is delivered through takeCHARGE, a joint initiative between Newfoundland Power and Newfoundland and Labrador Hydro.
  • Eligible Newfoundlanders and Labradorians can receive up to $22,000 in support for switching to electric home heating.

Incentives for Switching to Electric Home Heating

  • The incentives are designed to cover the upfront costs of transitioning to electric heating, which have been a barrier for many households.
  • Rebate amounts can reach up to $17,000 for low and moderate-income households.
  • The funding includes contributions from the Government of Canada’s Oil to Heat Pump Affordability program and the provincial government.

Support for Specific Technologies

  • The program supports the installation of mini splits, multi splits, central heat pumps, electric furnaces, and electric boilers.
  • Baseboard heaters and convection heaters are not eligible as a primary heating source.
  • The purchase and installation of electric hot water boilers may be eligible in some circumstances.

Impact on Energy Bills and Environment

  • Electric heat pumps are two to three times more efficient than other electric home-heating sources, which can lead to significant savings on energy bills.
  • The transition to electric heating is expected to lower greenhouse gas emissions, contributing to environmental sustainability.

Table of Incentives by Technology Type and Household Category

Technology Type Income-tested Program (Low and Moderate Income) Non-income-tested Program
Heat Pump Up to $22,000 Not specified
Electric Furnace Maximum $10,000 Maximum $5,000
Electric Boiler Maximum $10,000 Maximum $5,000

*Note: The above table summarizes the incentives available under the new program based on technology type and household income category.

This initiative is a testament to the commitment of both the federal and provincial governments to support residents in making environmentally-conscious choices that also help reduce living costs. It builds on the success of previous programs like the Greener Homes Initiative and is expected to create greater labor certainty for tradespeople across several industry sectors.

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