The Government of Canada, British Columbia partner to make heat pumps and home energy efficiency upgrades more affordable
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.
