The Government of Canada,
British Columbia partner to make
heat pumps and home energy efficiency upgrades more
affordable
VICTORIA, BC, May 13, 2024
/CNW/ - British Columbians are seeing firsthand the costly
impacts of more frequent and intense extreme weather events fuelled
by climate change. Reducing pollution and making life more
affordable while building a strong economy is how we can ensure a
secure, healthy future for everyone.
Today, the Honourable Steven Guilbeault, Minister of Environment
and Climate Change, and the Honourable Jonathan Wilkinson, Minister
of Energy and Natural Resources, announced a federal investment of
up to $103.7 million from
Canada's Low Carbon Economy Fund
(LCEF) and the Oil to Heat Pump Affordability (OHPA) program to
support climate action in British
Columbia and help low- and middle-income British Columbians
reduce their energy costs. They were joined by the Honourable Josie
Osborne, Minister of Energy, Mines and Low Carbon
Innovation for British
Columbia, and the Honourable George Heyman, Minister of
Environment and Climate Change Strategy for British Columbia, who announced an investment
of up to $151 million from the Province of British Columbia toward this initiative.
Funding from Environment and Climate Change Canada and Natural
Resources Canada will be used by British
Columbia to provide grants to enable residents to switch
their home heating systems from oil, propane, or natural gas to
cleaner heating and cooling options. Funding will also enable
building upgrades for low- and middle-income homeowners and tenants
through the CleanBC Better Homes Energy Savings Program, which aims
to support low- and middle-income households installing heat pumps
and reducing their energy bills. Heat pumps also provide cooling in
summer, protecting residents against extreme heat and replacing the
need for separate air conditioners.
As part of the Oil to Heat Pump Affordability program, low- and
middle-income applicants could receive a rebate of up to
$16,000 to switch to high-efficiency
heat pumps in homes currently heated with oil. With the support of
the Low Carbon Economy Fund, these changes will also apply to homes
heated with natural gas and propane. This is an increase in support
of approximately 70 percent from British
Columbia's existing rebate program. Those who are eligible
and living in northern British
Columbia can access up to an additional $3,000 toward the installation of a heat pump.
Homes that require an electrical system upgrade can also qualify
for a rebate of up to $5,000 to
complete this work.
The funding announced today could help low- and middle-income
applicants receive a total of up to $24,000 to cover the costs of a heat pump
installation, including electrical upgrades. In addition to these
increased rebates, successful Oil to Heat Pump Affordability
applicants who make the switch from oil heating to an electric heat
pump will also receive an upfront, one-time payment of $250 from the Government of Canada.
The CleanBC Better Homes Energy Savings Program also provides
funding for home upgrades, such as the installation of
energy-efficient windows and doors, insulation, and
ventilation.
These programs will build a clean economy by facilitating
16,000 retrofits in low- and middle-income households, which
are expected to reduce more than 40,000 tonnes of carbon dioxide
equivalent in 2030—about the same as removing over 12,000 passenger
vehicles from the road—and create over 900 full-time jobs. At the
same time, the programs will improve affordability by improving
energy efficiency and lowering monthly utility costs. Households
that switch from fossil fuels to electric heat pumps for space
heating can see energy savings of up to 80 percent.
Heat pumps are a proven technology in Canada, capable of providing year-round
comfort control for a home by heating it in the winter, cooling it
in the summer (heat pumps, despite their name, can also act as air
conditioners), and in some cases, heating water.
Initiatives such as those announced today put Canada on the right path to making life more
affordable and achieving net-zero emissions by 2050.
Quotes
"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."
– The Honourable Steven Guilbeault, Minister of Environment and
Climate Change
"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."
– The Honourable Jonathan Wilkinson, Minister of Energy and
Natural Resources
"More and more British Columbians are ready to switch from
fossil fuels to clean energy while making their homes more
efficient and comfortable. We are working to make electric heat
pumps and efficiency upgrades more affordable for low- and
middle-income households across the province, helping them to save
on their energy bills and build cleaner, more resilient
communities."
– The Honourable Josie Osborne, Minister of Energy, Mines and
Low Carbon Innovation for British
Columbia
"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 Affordability 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."
– The Honourable George Heyman, Minister of Environment and
Climate Change Strategy for British
Columbia
"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 benefitting both
individuals and businesses through improved comfort, affordability,
and environmental stewardship."
– Chelsea Brandt, General
Manager, RedBlue Heating and Refrigeration
Quick facts
- The 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.
- The Low Carbon Economy Fund supports 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 in their homes.
- 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
Oil to Heat Pump Affordability co-delivery arrangements in place
with Newfoundland and Labrador, Nova
Scotia, and Prince Edward
Island, and the agreement with British Columbia is expected by May 31, 2024. The Government looks forward to
co-delivering the program with other provinces and territories
soon.
- The Oil to Heat Pump Affordability program has received nearly
14,000 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 middle-incomes.
- The number of households in British
Columbia with heat pumps has increased by approximately 80
percent since 2017, from an estimated 142,000 to 254,000. In 2022,
for the first time ever, the number of heat pumps shipped to
British Columbia (37,800) exceeded
the number of natural gas furnaces shipped to British Columbia (30,700).
Associated links
- Low Carbon Economy Fund
- Oil to Heat Pump Affordability Program
- 2030 Emissions Reduction Plan – Canada's Next Steps for Clean Air and a Strong
Economy
- Budget 2024 – Fairness for Every Generation
Environment and Climate Change Canada's Twitter page
Environment and Climate Change Canada's Facebook page
SOURCE Environment and Climate Change Canada