Quick answer
The Canada Green Buildings Strategy aims to phase out oil heating systems in new buildings starting in 2028. It doesn't require existing homes to remove working oil systems, but federal programs have helped oil-heated homes switch to heat pumps.12
New buildings
The Canada Green Buildings Strategy includes phasing out oil heating in new buildings starting in 2028, along with a faster pace of retrofits for existing buildings.1
Existing homes: the Oil to Heat Pump Affordability program
- The federal program helped oil-heated households switch to eligible heat pumps, with upfront payments of up to $10,000, or up to $15,000 where co-delivered with a provincial partner.2
- It closed to new applications on July 31, 2026.2
Oil-heated homes in Ontario
Home Renovation Savings offers higher heat pump rebates to homes heated with electricity, oil, propane or wood: up to $7,500 for a cold-climate air-source heat pump and up to $12,000 for ground-source.3
Common follow-up questions
Do I have to replace my oil furnace?
The 2028 phase-out targets new buildings. Existing systems can stay, but rebates can help if you're planning to switch.
Can I still apply to the Oil to Heat Pump Affordability program?
It closed to new applications on July 31, 2026.
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Answers are general information as reported by the sources listed on the date shown, not personal financial or technical advice. Programs, prices and rules change. Canadian Energy Standard is an independent company, not affiliated with any government, utility or program named here.