Canada and the Yukon Increase Investments in Popular Heat Pump Program and Partner on Climate Adaptation

WHITEHORSE, YT, March 13, 2025 /CNW/ - Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, and the Honourable John Streicker, Yukon Minister of Energy, Mines and Resources, announced they are more than tripling the funding for a program to help Yukon homeowners switch to energy-efficient heat pump systems, which will help households save money, ensure year-round comfort and reduce greenhouse gas emissions.

The Yukon's Affordable Heat Pump Program was launched in December 2024 with funding from the federal government's Oil to Heat Pump Affordability (OHPA) program and the Low Carbon Economy Fund. The program proved to be so popular that it was fully subscribed within three weeks. The new combined funding for the program has increased to $8.8 million, up from $2.4 million.

As part of the program, low- to median-income Yukon homeowners are eligible for a rebate of up to $24,000 to install a high-efficiency heat pump and Yukoners with oil-heated homes are eligible to receive an additional upfront payment of $250 for a heat pump.

The federal government has similar co-delivery arrangements in place through OHPA with British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. Discussions are also underway with other provinces and territories. 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.

To reach Canada's climate goals, emissions reductions must be complemented by adaptation efforts. The Government of Canada and Yukon are also pleased to announce that they have established bilateral collaboration to advance shared climate adaptation priorities, in line with Canada's National Adaptation Strategy.

Canada and Yukon's strong partnerships on the Affordable Heat Pump Program and climate adaptation action are a prime example of what we can accomplish when we work together to tackle the major issues of our time.

Quotes

"Making the switch to more energy-efficient homes can help Canadians save money, reduce their energy use and decrease their carbon footprint. That's why we are strengthening the Oil to Heat Pump Affordability program in the Yukon and ensuring that families are supported when they choose to move from expensive heating oil to energy-efficient, non-polluting heat pumps that drive down the cost of home heating for families."

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

"Canada's partnership with Yukon on the Affordable Heat Pump Program will help more Yukoners switch to energy-efficient heating, reducing greenhouse gas pollution and saving families hundreds of dollars each year on utility costs. We are also working together to help Yukon communities become more resilient to the impacts of extreme weather and climate change. When we work together, we achieve great outcomes for the environment, our economy and Canadians."

The Honourable Steven Guilbeault 
Minister of Environment and Climate Change

"The initial uptake of this program showed that Yukoners are keen to reduce heating costs and their carbon emissions. We are removing financial hurdles for Yukoners to reduce household emissions, bringing us closer to our goal of installing 1,300 smart electric heating systems by 2030. Thank you to our federal funding partners at NRCan and ECCC for helping us to meet this ambitious goal."

The Honourable John Streicker
Yukon Minister of Energy, Mines and Resources

"Transitioning to energy-efficient heating systems allows Canadians and Yukoners to save on home energy costs. Yukoners have shown their commitment to sustainable living, and the Oil to Heat Pump Affordability program will support homeowners in switching from heating oil to efficient heat pumps. Due to high demand, we are increasing our investment in this program, benefiting local installers and businesses while promoting cost-effective and environmentally friendly home heating in northern Canada."

Brendan Hanley
Member of Parliament for Yukon

Quick facts

• The federal OHPA 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.
  • Every year, on average, a household participating in the OHPA program saves $1,337 on energy costs and achieves 2.78 tonnes in greenhouse gas reductions.
  • To date, the OHPA program has contributed to reducing 37,719 metric tonnes of greenhouse gases — equivalent to removing 11,574 cars off the road.
  • The OHPA program has received approximately 36,750 applications to date nationally.
• In October 2023, the federal government announced it is working with provinces and territories on co-delivery agreements, including:
  • increasing federal OHPA funding up to $15,000, of which up to $5,000 matches supplementary provincial and territorial contributions via co-delivery arrangements
  • an upfront payment of $250 for eligible applicants through the Canada Heat Pump Bonus
• In December 2024, the Governments of Canada and Yukon announced $1.4 million from the OHPA program, more than $287,000 from Canada's Low Carbon Economy Fund (LCEF) and $700,000 in territorial funding to support Yukon's Affordable Heat Pump Program.
• Due to the popularity of the program in the Yukon, Natural Resources Canada has increased its investment through OHPA to $5.1 million, Environment and Climate Change Canada has increased its contribution to more than $971,000, and the Government of Yukon has increased its investment to $2.8 million.
• Heat pumps are one of the best ways for homeowners to save money on energy bills and fight climate change.
  • Electric heat pumps are energy-efficient heating and cooling systems that provide comfortable temperatures year-round by exchanging heat from outside the home. They are two- to three-times more efficient than other electric home heating sources.
  • This performance results in greater savings for homeowners and reduced energy intake for utilities and grids.
• Under Budget 2024, the Government of Canada is taking numerous steps to make life more affordable for Canadians while addressing climate change. These include the Canada Greener Homes Affordability Program, which will support the direct installation of energy efficiency retrofits for Canadian households with low to median incomes.
• According to the Insurance Bureau of Canada, extreme weather events caused $8.9 billion in insured losses in 2024 alone. The new bilateral collaboration between Canada and Yukon on adaptation is in line with the National Adaptation Strategy, which sets out a long-term vision for adaptation action.

Related Information

• Yukon: Rebates on Your Home Heating System
• Oil to Heat Pump Affordability program
• Low Carbon Economy Fund
• Canada Greener Homes Initiative
• Canada Greener Homes Affordability Program
• Canada Green Buildings Strategy
• Electric heat pumps
• Canada's National Adaptation Strategy
• Canada in a Changing Climate—Northern Canada

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SOURCE Natural Resources Canada

Contacts: Media Relations, Natural Resources Canada, 343-292-6096, [email protected]; Joanna Sivasankaran, Director of Communications, Office of the Minister of Energy and Natural Resources, [email protected]; Kate Erwin, Communications, Energy, Mines and Resources Government of Yukon, 867-667-3183, [email protected]