Government of Yukon and Government of Canada Announce New Investments to Make heat pumps more Affordable for Yukoners
January 3, 2025
The Government of Canada and the Government of Yukon are partnering to help Yukoners switch to smart electric heating systems, making life more affordable while reducing greenhouse gas emissions.
The federal investment consists of $1.4 million from the Federal Oil to Heat Pump Affordability program (OHPA) and $287,000 from Canada’s Low Carbon Economy Fund (LCEF). The Yukon government will provide an additional $700,000 in territorial funding towards further helping low-to-middle-income households cover the cost of purchasing and installing a heat pump.
Heat pumps are one of the best ways for homeowners to save money on energy bills and combat climate change. They are two to three times more efficient than other electric home heating sources, providing greater savings for homeowners while reducing energy consumption for utilities and power grids.
As part of the Government of Yukon’s Affordable Heat Pump Program, eligible Yukon homeowners can receive 100 percent of the cost to purchase and install a heat pump to a maximum of $24,000. Additionally, homeowners can receive an upfront payment of $250 to add high-efficiency heat pumps in homes currently heated with oil. Homeowners using other energy sources, such as propane or electric baseboards, could also be eligible for cold climate heat pump rebates funded by LCEF and the Government of Yukon.
Through these investments, the governments of Canada and Yukon are helping Yukoners access energy-efficient heat pumps, save on their energy bills and reduce their carbon emissions to protect the environment.
Quick facts
- The federal government’s Oil to Heat Pump Affordability program was first introduced in November 2022 as a $250 million investment in a new stream within the Canada Greener Homes Initiative. On February 22, 2023, the program was opened to pre-registration and was fully launched in late March 2023, with the first grants being issued shortly thereafter.
- Introduced in October 2023, the federal government announced working with provinces and territories on co-delivery agreements including an upfront payment of $250 for eligible applicants through the Canada Heat Pump Bonus.
- Every year, on average, a household participating in the Oil to Heat Pump Affordability program saves $1,337 on energy costs and 2.78 tonnes in greenhouse gas reductions.
- The federal government currently has OHPA program co-delivery arrangements in place with British Columbia, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. Active discussions are underway with other provinces and territories to deliver new, strengthened OHPA co-delivery agreements to make heat pumps even more affordable for Canadians across the country. In jurisdictions without co-delivery arrangements, oil-heated households can continue to apply to the national program to receive up to $10,000 in federal OHPA funding for switching to electric heat pumps.
- The federal government’s Oil to Heat Pump Affordability program has received over 29,000 applications to date nationally.
- 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 to median incomes.
- Yukoners who participate in the Affordable Heat Pump Program (the Yukon’s version of the federal government’s Oil to Heat Pump Affordability program) may retain their pre-existing heating sources as backup systems for periods of extreme cold.
