The federal government will announce details on Monday of a new grant to help low- to median-income Canadian households make the switch from oil to heat pumps, sources have told CBC News.
The new grant will provide households with up to $5,000 — depending on the household income — to cover costs including the purchase and installation of heat pumps, and the safe removal of the oil tank.
Sources say money will be provided up front to pay for the switch. The new grant can be combined with existing greener-home grants.
Sources with knowledge of the announcement spoke to CBC News on condition of anonymity, as they were not authorized to speak publicly on the matter.
In September, the federal government set aside up to $250 million over four years for a new program aimed at making home heating more affordable for households across the country, especially in Atlantic Canada, where 30 per cent of homeowners still use furnace oil to heat their homes.
The government says moving from heating oil to a heat pump can save homeowners thousands of dollars each year.
Details of the grant will be announced at an event Monday morning in Stellarton, N.S., with Sean Fraser, minister of immigration, refugees and citizenship.