As part of the commitment to lower greenhouse gas emissions and reduce energy costs for residents, the Provincial Government, in collaboration with Natural Resources Canada and Environment and Climate Change Canada, today announced just over $157 million towards implementation of new fuel switching and energy efficiency incentive programs over the next four fiscal years.

This new Oil to Electric Incentive Program will provide incentives for technologies, including mini splits, multi splits, central heat pumps, electric furnaces and electric boilers. Incentives are available to oil-fueled homeowners with rebate amounts of up to $17,000 for low and moderate-income households. Household income will be assessed on an after tax basis and verified by the Canada Revenue Agency prior to pre-approval being granted. Over 40,000 households are estimated to be eligible under the new program. These rebates are retroactive to April 1, 2023.

In addition, households that have already received Greener Homes funding, through the Federal Government, may be eligible for lower incentives.

Applicants are encouraged to obtain pre-approvals prior to filing applications or hiring contractors so they can be aware of the rebate value they are receiving, ensure (where appropriate) compliance with the Greener Homes program, as well as confirm their installed heating technologies will meet minimum eligibility requirements.

The program is being delivered through takeCHARGE, a joint initiative between Newfoundland Power and Newfoundland and Labrador Hydro. Further program details, application forms, and related materials are available at:

• https://takechargenl.ca/oiltoelectric
• Newfoundland Power Service Areas: 1-800-663-2802
• NL Hydro Service Areas: 1-888-737-1296

Eligibility criteria can be found in the backgrounder below.

Further details on the non-residential Low Carbon Economy Leadership Fund program, cost shared with Environment and Climate Change Canada, will be announced in the near future.

Quotes
“We are pleased to implement a new program such as this, one that not only furthers our government’s commitment to the green transition by lowering greenhouse gas emissions, but also enables economic development opportunities. These multi-year initiatives will create greater labour certainty to trades people across several industry sectors, while directly supporting Newfoundlanders and Labradorians in making environmentally-conscious choices aimed at reducing overall living costs.”
Honourable Bernard Davis
Minister of Environment and Climate Change

“Electricity is the cheaper, greener and more reliable way to heat your home. We’ve already helped 2,500 Newfoundlanders and Labradorians make the switch from oil to electric. But we want more people to make the switch and lower their heating bills, so we’re helping cover the upfront cost.”
Joanne Thompson, Member of Parliament for St. John’s East, on behalf of the Honourable Steven Guilbeault, Minister of Environment and Climate Change Canada

“The Government of Canada is helping Newfoundlanders and Labradorians save money on their utility bills while enhancing their home’s energy efficiency. Today’s investment builds on the progress of our Oil to Heat Pump Affordability Program and the Greener Homes Initiative, which have supported thousands of Canadian households to make the switch to an electric heat pump.”
Honourable Jonathan Wilkinson
Minister of Natural Resources, Government of Canada

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Oil to Electric Incentive Program

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BACKGROUNDER

Oil to Electric Incentive Program

Eligibility:

• All households in the province that are heated with fuel oil (minimum 1,000 litres per year), excluding households in communities with diesel electricity generation.
• Households heated with propane may be eligible in some circumstances.  Please see the takeCHARGE website for further details.
• A separate initiative is being developed for households in communities with diesel electricity generation.  Renters and seasonal homes and cottages are not eligible.
• Heat pump technologies for low and moderate income households and non-heat pump technologies for low income households must have an installation date and submit an invoice between April 1, 2023 and March 31, 2027.
• All other projects must have an installation date and have an installation invoice dated between April 1, 2023 and March 31, 2026.
• Eligible activities include purchase and installation of eligible electricity heating technologies, electrical panel upgrades (where necessary) and removal of the fuel oil tank.
• For heat pump systems, there is a requirement for whole house heating. This will maximize energy savings by precluding installation of heat pump systems that will not heat the entire home. Installer has to sign an attestation confirming installation is in compliance with this requirement to avail of the incentive.
• There is no requirement for an energy audit to access funding provided through the Canada Greener Homes grant for lower income households installing heat pumps through this program.
• Baseboard heaters and convection heaters cannot be a primary heating source.  Purchase and installation of electric hot water boilers may be eligible in some circumstances.  Please see the takeCHARGE website for further details.

Benefits and Incentives Highlights:

• Through this program, installers can now directly invoice Newfoundland Power or Newfoundland and Labrador Hydro for costs incurred within established incentive This removes upfront costs for installation of heating technologies to homeowners.
• Installers should contact Newfoundland Power or Newfoundland and Labrador Hydro for further details.  No direct invoicing is available for electricians or other contractors (unless the services provided are bundled with the invoice submitted by the installer).

Incentives by Technology Type and Household Category:

Technology Type	Income-tested program (low and moderate income)	Non-income
Electric furnace	Maximum $10,000	Maximum $5,000
Electric boiler	Maximum $10,000	Maximum $5,000
Mini-split*	Maximum $10,000**	Maximum $5,000
Multi-split	Maximum $13,000**	Maximum $6,500
Central heat pump	Maximum $17,000**	Maximum $9,000

* A single mini-split has to achieve whole house heating guidelines. See takeCHARGE website for further details.

** Homeowners that have received Greener Homes funding will have their incentive reduced by the amount of Greener Homes funding received.

Income thresholds by household size (Adjusted net income basis):

Number of Persons*	Income tested threshold ** household basis
One person	$32,500
Two persons	$64,000
Three persons	$91,000
Four persons	$114,000
Five persons	$119,000
Six persons	$119,000
Seven persons	$119,000

* The number of persons living in the home is defined as the adult(s) parents and any children claimed in their tax filing who are eligible for the Canada Child Tax Benefit as verified by the Canada Revenue Agency. For those who had a child since their last tax filing, as special provision will be available to them upon submission of a birth certificate or acceptable alternative.

** Defined as notice of tax assessment form line 23600 (net income) less line 43500 (tax payable).

Savings Estimate:

• A household that currently consumes 2,400 litres of fuel per year (average of 200 litres per month) currently pays about $3,200 in heating costs per year.
• This household can expect to save up to 60 percent of its heating costs per year if it installs a heat pump (savings of up to $1,900 per year), or up to 15 percent (savings of up to $500 per year) if it installs an electric furnace or boiler.
• The calculations include the federal carbon tax to come into force on July 1, 2023, the scheduled electricity price increase for July 1, 2023, and HST.