An oil to heat pump conversion in Victoria still makes sense in late 2026, but the money behind it has changed. The federal Oil to Heat Pump Affordability (OHPA) program stopped taking applications on July 31, 2026, and the old Canada Greener Homes Grant is closed. What is left for most oil-heated homes in Greater Victoria is one provincial program, the income-qualified CleanBC Energy Savings Program, plus 0% property-tax financing in Saanich and Central Saanich. The income ceilings are higher than most people assume, so read the income table below before you decide you do not qualify.
This guide covers what each program pays today, why oil is now the most expensive way to heat a Victoria home, and the exact order of steps that keeps your rebate safe.
What happened to the federal oil to heat pump grant?
Natural Resources Canada says July 31, 2026 was the last day to apply to OHPA, which offered up to $10,000. If you applied and were approved before that date, you are still in: all work must be finished and paid for, and your final receipts and the attestation form uploaded, by January 31, 2027. NRCan also notes the program is moving to Environment and Climate Change Canada, so watch your email for changes to the upload portal.
If you never applied, there is no federal grant to replace it. The Canada Greener Homes Grant is also listed as closed. Any quote or website still "stacking" either of these for a new customer is out of date.
What oil to heat pump rebates are still available in Victoria?
Here is every program we could confirm for an oil-heated, ground-oriented home (detached house, duplex, row home) in Greater Victoria, checked October 8, 2026.
| Program | Status for a Victoria oil home | Maximum |
|---|---|---|
| Federal OHPA | Closed to applications July 31, 2026 | Approved files only, receipts by Jan 31, 2027 |
| Canada Greener Homes Grant | Closed | None |
| CleanBC standard heat pump rebate (Home Renovation Rebate) | Oil, gas and propane offers are for northern BC only (north of 100 Mile House) | $0 in Victoria |
| BC Hydro limited-time bonus | Only for homes replacing electric heat | $0 for oil homes |
| CleanBC Energy Savings Program (income-qualified) | Open, invoices on or after July 6, 2026 | Up to $13,000 heat pump, $16,500 combined space and water |
| Energy Savings Program electrical service upgrade | Open, fossil fuel conversions only | Up to $5,000 |
| Saanich heat pump financing | Intake deadline October 13, 2026 | Up to $12,000 at 0%, repaid over 10 years on property tax |
| Central Saanich heat pump financing | Open, limited spots (four homes for 2026) | Up to $12,000 at 0%, repaid over 10 years on property tax |
We found no current heat pump top-up from the City of Victoria, Oak Bay, Esquimalt, Langford, Colwood, View Royal, North Saanich or Sidney. That is not proof none exists, so ask the CRD's free Home Energy Navigator service before you sign anything.
Energy Savings Program amounts for oil homes
The amount depends on the system and your income level. These are the CleanBC figures for invoices dated on or after July 6, 2026:
| Upgrade (oil-heated home) | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Central ducted, 3-head multi-split or air-to-water heat pump | $13,000 | $7,000 | $3,500 |
| 2-head multi-split or two single-head mini-splits | $11,000 | $5,500 | $3,000 |
| Single-head mini-split | $7,000 | $5,000 | $3,000 |
| Combined space and water heat pump | $16,500 | $11,500 | $7,000 |
| Heat pump water heater (oil or gas water heating) | $3,500 | $3,500 | $3,500 |
| Electrical service upgrade | $5,000 | $3,500 | $1,500 |
Do you qualify? The income limits
Level 3 is open to households well into the middle-income range. A family of four qualifies for Level 3 with a household income up to $189,800.
| Household size | Level 1 up to | Level 2 up to | Level 3 up to |
|---|---|---|---|
| 1 | $51,100 | $63,900 | $102,100 |
| 2 | $63,600 | $79,500 | $127,200 |
| 3 | $78,200 | $97,700 | $156,300 |
| 4 | $94,900 | $118,600 | $189,800 |
| 5 | $107,600 | $134,500 | $215,200 |
| 6 | $121,400 | $151,700 | $242,700 |
| 7+ | $135,100 | $168,900 | $270,200 |
Level 3 only exists for homes switching from oil, gas or propane, which is exactly your situation. Our full guide to the Energy Savings Program covers the other eligibility rules, and the heat pump rebate checker works out your level in a minute.
Worked example: a two-person household on Level 3
A retired couple in Gordon Head with a household income of $110,000 is over the Level 2 limit ($79,500) and under the Level 3 limit ($127,200). If they replace an oil furnace with a central ducted heat pump, upgrade to 200 A service and add a heat pump water heater, the Energy Savings Program could pay $3,500 + $1,500 + $3,500 = $8,500, and Saanich's 0% financing could cover up to $12,000 of what is left, if they apply before the October 13 intake closes.
Why convert from oil now? What oil heat costs in Victoria
Statistics Canada puts household heating oil in Victoria at 256.2 cents per litre in August 2026, up from 182.5 cents in September 2025. Natural Resources Canada rates a litre of heating oil at 38.2 MJ of energy, and an older oil furnace or boiler at about 60% seasonal efficiency (mid-efficiency units 83% to 89%).
Here is what 1,000 litres of oil, about $2,562 at the August price, buys in heat, and what the same heat costs from a heat pump on BC Hydro's Step 2 rate of 14.08 cents per kWh:
| Your oil system | Heat delivered by 1,000 L | Same heat, heat pump at COP 1.7 | Same heat, heat pump at COP 2.5 |
|---|---|---|---|
| Older unit, 60% efficient | about 6,370 kWh | about $527 | about $359 |
| Newer unit, 85% efficient | about 9,020 kWh | about $747 | about $508 |
COP is how many units of heat the heat pump delivers for each unit of electricity. NRCan's general table uses a conservative seasonal 1.7 for air-source heat pumps; we show 2.5 as a second case, not a promise. Even at the conservative figure, the heat costs roughly a fifth to a third of what oil costs. The BC carbon tax was eliminated on April 1, 2025, so that saving is not about tax. It is the oil price itself.
Which heat pump replaces an oil furnace or boiler?
The right system depends on how your oil heat is delivered today.
- Oil furnace with ducts: a central ducted heat pump usually reuses the existing ductwork after a check of size and condition. It qualifies for the top Energy Savings Program tier.
- Oil boiler with radiators or in-floor heat: either an air-to-water heat pump that feeds the existing pipes, or ductless heads in the main living areas. Air-to-water sits in the top rebate tier too.
- Small home or a home already partly on baseboards: one or two ductless heads may be enough, but check the program rule that the heat pump must heat all conditioned space.
Our heat pump cost guide for Victoria covers price drivers by system type. As one published reference point, a March 2026 CityNest.ca buyer guide puts ductless systems in Victoria at $6,000 to $18,000 and central ducted systems at $18,000 to $30,000 or more, depending on size and electrical work. Your quote will depend on your house.
Oil to heat pump conversion steps, in the right order
The order matters. Doing step 5 before step 1 can cost you the whole rebate.
- Pre-register for the Energy Savings Program first. The program requires pre-registration and an eligibility code before any work is installed. The code is valid for upgrades completed within three months of approval, so line up your contractor before the clock starts.
- Apply for municipal financing if you live in Saanich or Central Saanich. Saanich's current intake closes October 13, 2026, with Council adoption on November 23, 2026. Central Saanich is funding four homes in 2026.
- Get a heat load assessment. Sizing should be based on your home's heat loss, not the old furnace's rating, which is often oversized. Our sizing calculator gives a starting range.
- Check your electrical service. Older homes may still have 60 A or 100 A service. If an upgrade is needed, the Energy Savings Program pays up to $5,000 at Level 1 for a fossil fuel conversion, and it must be done within six months of the heat pump install.
- Get quotes from registered contractors. The program requires a registered contractor to install the work and submit the rebate application. Self-installs are not eligible.
- Book the oil tank removal. The Energy Savings Program says all oil-heated homes must remove the oil tank along with the heating system. Every municipality needs a fire department permit, and Saanich also requires soil testing by an environmental engineer. See our guide to oil tank removal costs and rules in Victoria.
- Plan the water heater. If your hot water also comes from oil, a combined space and water heat pump (up to $16,500 at Level 1) or a separate heat pump water heater ($3,500 at every level) can be part of the same job.
- Install and inspect. Technical Safety BC requires an electrical permit for a residential heat pump. A typical house heat pump does not need a refrigeration permit. A gas permit only applies if a gas appliance is modified or removed.
- Remove all the oil equipment. The program requires all fossil fuel heating equipment, including piping, appliances, fuel containers and vents, to be removed. Keep the tank removal report.
- Let the contractor claim. Under the Energy Savings Program the registered contractor submits within six months of the invoice and receives the rebate. You pay the balance.
What else changes when you leave oil?
Your electrical panel
A heat pump, plus a heat pump water heater, can push an older panel past its capacity. A licensed electrical contractor needs to do a load calculation before you choose equipment. The rebate for a service upgrade only applies to fossil fuel conversions, which is one of the few places oil homes get a better deal than electric ones.
Your hot water
If the oil boiler also made your hot water, you need a new water source the day the boiler goes. Plan the replacement water heater at the same time as the heat pump.
Your insurance and resale
A removed tank with a clean soil report is easier to insure and to sell. The province's contaminated sites fact sheet warns that a buyer of a property with an oil tank can become liable for future cleanup.
Moving from a baseboard-heated part of the house too?
Some oil homes have a suite or addition on electric baseboards. That part follows the electric-home rules, explained in our baseboard to ductless heat pump guide.
How long does an oil to heat pump conversion take?
Allow for paperwork as well as installation. Pre-registration must come first, the eligibility code gives you three months to finish, a BC Hydro service upgrade can add its own wait, and the tank removal needs its own permit and inspection. Book the assessment early, especially if you want the new system running before January.
Want a quote for your home? Tell us about your oil system on our free estimate page or see our heat pump services.