New Investments to Help New Brunswickers Reduce Energy Costs and Stay Warm

FREDERICTON, NB, Feb. 28, 2025 /CNW/ - New Brunswick homeowners need efficient heating and cooling systems to live comfortably and affordably. Choosing to heat a home with a heat pump instead of oil can help a household save thousands of dollars on heating bills every year while reducing greenhouse gas emissions. The Government of Canada has been helping Canadian homeowners take advantage of these benefits through the Oil to Heat Pump Affordability (OHPA) program, which significantly offsets the cost of switching to a heat pump.

Today, Jenica Atwin, Member of Parliament for Fredericton, on behalf of the federal Minister of Energy and Natural Resources, announced that NB Power will partner with the federal government to co-deliver the OHPA program in the province, making the shift to heat pumps even more affordable for New Brunswickers. Natural Resources Canada is investing $99.5 million in federal funding, and Environment and Climate Change Canada is also investing $23.8 million through the Low Carbon Economy Fund. MP Atwin was joined by René Legacy, New Brunswick Minister responsible for Energy and Lori Clark, President, CEO and Chief Nuclear Officer of NB Power.

Under the program, low- to median-income households in New Brunswick that heat their home with oil can apply through the NB Power website to receive coordinated grants from the Government of Canada and the Province of New Brunswick that fully cover the cost of the average oil to heat pump conversion.

With this announcement, New Brunswick becomes the fourth Atlantic province to sign on for OHPA co-delivery, working with the Government of Canada to deliver seamless program applications and additional heat pump funding to their residents. Eligible applicants in these jurisdictions are also provided with an upfront, one-time Canada Heat Pump Bonus cheque of $250 from the Government of Canada. With today's announcement, all Atlantic Canadians will now have access to this funding.

To complement this energy affordability announcement for Atlantic Canadians, the Government of Canada also announced today an investment of over $5.5 million toward public charging infrastructure that provides owners and drivers of electric vehicles with an affordable, convenient and quick way to fuel their cars. This funding will help install up to 42 chargers across New Brunswick and Nova Scotia.

Canadian governments are working together to reduce energy usage and bills, help residents maintain safe and comfortable indoor temperatures and reduce pollution from energy — all while creating well-paying jobs to satisfy the demand that is being created for home energy installations and retrofits. New Brunswickers stand to benefit greatly from this new round of federal-provincial collaboration.

Quotes

"Making the switch to more energy-efficient homes and vehicles 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 New Brunswick and ensuring that families are supported in making the switch from heating oil to energy-efficient heat pumps. Along with further investments in EV charging in Nova Scotia and New Brunswick, today this federal government is continuing to deliver on its promise of personal affordability for Atlantic Canadians." 

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

"Heat pumps are one of the cheapest solutions for home heating. Our government has been working to make heat pumps more accessible across the country through initiatives like the Low Carbon Economy Fund, helping keep up our historic progress: reducing emissions to their lowest level in 27 years while maintaining a growing economy. Thanks to this new agreement, low-income households in New Brunswick will now have access to affordable heating systems that keep them warm, reduce energy consumption in the winter and save them hundreds of dollars each year — all while continuing the fight against climate change!"

The Honourable Steven Guilbeault 
Minister of Environment and Climate Change

"We know New Brunswickers are struggling with high energy bills and we are committed to making life more affordable. A significant number of homes in our province, as well as throughout all the Atlantic provinces, still heat with oil. Switching to heat pumps can help New Brunswickers heat and cool their homes more efficiently, and more affordably, while reducing greenhouse gas emissions."

The Honourable René Legacy
Minister of Finance and Treasury Board and Minister responsible for Energy

"This is about helping our customers. Our customers have told us they're looking to us for supports to help them manage their energy use. Thanks to today's announcement of increased investment and strengthened partnerships with both the federal and provincial governments, we're going to be able to help more New Brunswickers reduce their energy use and heat their homes more efficiently, faster." 

Lori Clark
President, CEO and Chief Nuclear Officer, NB Power

"Affordability is top of mind for Canadians right now, and making the switch from expensive oil heating to a heat pump can help save thousands of dollars on energy bills, while keeping homes at a comfortable indoor temperature. This funding will help New Brunswickers make the move to heat pumps so they can save their hard-earned dollars while protecting the environment."

Jenica Atwin, Member of Parliament for Fredericton

Quick facts

• The Oil to Heat Pump Affordability program was first introduced in November 2022 as a $250 million investment in a new stream of the Canada Greener Homes Initiative. Pre-registration opened in February 2023 and grants began to flow only a few months later.
• The federal government announced working with provinces and territories on co-delivery agreements in October 2023, which included:
  • Increasing the amount that can be claimed by eligible homeowners through OHPA for installing a heat pump to $15,000, in addition to the $5,000 plus supplementary provincial and territorial contributions via co-delivery arrangements.
  • Providing an upfront payment of $250 for eligible applicants through the Canada Heat Pump Bonus.
• The Low Carbon Economy Fund supports provincial and territorial initiatives aimed at reducing greenhouse gas emissions, including New Brunswick's Enhanced Energy Savings program. Through this program, low-income households in New Brunswick can access incentives to switch from oil to heat pumps and reduce their winter energy consumption.
• Heat pumps are one of the best ways for homeowners to save money on energy bills and fight climate change. They are also two to three times more efficient than other electric home heating sources. This results in greater savings for homeowners and reduced energy intake for utilities and grids.
• On average, a household participating in the Oil to Heat Pump Affordability program saves $1,337 on its annual energy costs and reduces its greenhouse gas emissions by 2.78 tonnes.
• Since 2016, the Government of Canada has allocated over $1.2 billion to support the deployment of more charging stations across the country through the Zero Emissions Vehicles Program. There are over 32,000 public electric vehicle (EV) chargers at more than 12,000 locations in Canada.

Related Information

• Save Energy NB
• Backgrounder – The Oil to Heat Pump Affordability Program
• Oil to Heat Pump Affordability program
• Low Carbon Economy Fund - Canada.ca
• Canada Greener Homes Initiative
• Canada Greener Homes Affordability Program
• Canada Green Buildings Strategy
• Electric Heat Pumps
• Zero Emission Vehicle Infrastructure Program
• Smart Renewables and Electrification Pathways Program
• Canada Greener Homes Initiative: Key Highlights

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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]