Last Updated: February 2026
Written by Vahid Isapur, Owner & Red Seal Certified HVAC Technician at Blue Ridge Heating & Cooling | 15+ Years Experience
Vahid Isapur is a Red Seal Certified Journeyman HVAC Technician, Gas Fitter Class B, and BC Safety Authority Registered Contractor. As a BC Hydro & CleanBC Registered Contractor, he has personally overseen hundreds of heat pump installations across Surrey, Vancouver, and the Lower Mainland. This article is based on 15+ years of hands-on field experience and up-to-date knowledge of provincial and federal rebate programs.
🔑 Key Takeaways
- BC homeowners with oil furnaces can access up to $16,000+ in combined rebates through the CleanBC Energy Savings Program and the federal Oil to Heat Pump Affordability (OHPA) Program.
- The total cost of an oil-to-heat-pump conversion typically ranges from $15,000–$25,000 before rebates — but eligible homeowners may pay little to nothing out of pocket.
- Oil tank removal is mandatory under the BC Fire Code once the tank is out of service, and must be done by a licensed contractor.
- You can save $1,300–$2,500+ per year on heating bills by switching from oil to a cold-climate heat pump.
- Blue Ridge Heating & Cooling handles everything: from the in-home assessment and heat pump sizing to oil system removal coordination and 100% of your rebate paperwork.
Why BC Homeowners Are Ditching Oil Furnaces in 2026
If you’re still heating your home with oil in Surrey, Vancouver, or anywhere in the Lower Mainland, 2026 is the year to make the switch. Here’s why thousands of BC homeowners are converting from oil to heat pump systems right now — and why waiting could cost you thousands.11 It is estimated there are 28,000 homes in British Columbia still heated with oil, which typically incur the highest heating costs. If your home is one of them, you’re paying a premium for an outdated, inefficient, and environmentally harmful heating system.
I’m Vahid Isapur, and over 15 years I’ve helped hundreds of Greater Vancouver homeowners make this exact transition. In this guide, I’ll walk you through the complete oil-to-heat-pump conversion process, break down the real costs, explain every rebate available in 2026, and show you how my team at Blue Ridge Heating & Cooling handles every detail so you don’t have to.
Need answers fast? Call us at (604) 615-2212 or book a free in-home estimate.
3 Reasons to Replace Your Oil Furnace Now
1. Skyrocketing Oil Costs vs. Stable Electricity
Heating oil prices in BC have been volatile for years, and they’re trending upward. A typical BC household burning 2,000–3,000 litres of heating oil per year can easily spend $3,500–$5,500+ annually. 4On average, OHPA households save $1,337 on their home energy bills every year. Many of our customers in Surrey and Vancouver report even higher savings because BC’s electricity rates remain among the lowest in North America.11 Households that switch from fossil fuels to electric heat pumps for space heating can see energy savings of as much as 80%.
2. Massive Rebates Won’t Last Forever
The combination of federal and provincial programs for oil-to-heat-pump conversions has never been this generous — but funding is finite. 15With the support of the OHPA program, income-qualified applicants could receive a rebate of as much as $16,000 to switch to high-efficiency heat pumps in homes currently heated with oil. We’re already seeing programs reach their funding limits in other provinces. Don’t wait until BC’s allocation runs out.
For a deep dive into all available provincial incentives, read our complete guide: CleanBC Heat Pump Program 2026: How to Get Up to $11,000 Back.
3. Environmental & Health Benefits
4 On average, 2.8 tonnes per year of pollution will be reduced for every home that receives an OHPA grant. Oil furnaces produce carbon dioxide, nitrogen oxides, and particulate matter right inside your home’s mechanical room. A heat pump produces zero on-site emissions and, when powered by BC’s clean hydroelectric grid, is one of the greenest ways to heat and cool your home year-round. 21 Home heating oil systems are among the most carbon-intensive residential heating options and pose environmental and safety risks due to potential soil and groundwater contamination from leaking tanks.
The Federal Oil to Heat Pump Affordability Program (OHPA): Up to $10,000
3 Canadian homeowners who are eligible for the Oil to Heat Pump Affordability program may receive up to $10,000 toward the costs associated with switching from oil heating to an eligible heat pump system. 3 This is available for homeowners in British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Yukon.
How the OHPA Program Works
1 In most cases, this means you will receive your funds in advance of having to pay for any of the related costs. The upfront payment is applicable for homeowners where the program is delivered exclusively by the federal government.
Here’s what makes this program unique:
- Upfront payment — You receive money before the work starts
- No home energy evaluation required — 1A home energy evaluation may not be required to participate in the OHPA program.
- Stackable — 1The funding can be combined with additional financial assistance from other existing federal, provincial, territorial, and utility programs.
- One-time $250 bonus — 15Successful OHPA applicants who make the switch from oil heating to an electric heat pump will also receive an up-front, one-time payment of $250 from the Government of Canada.
OHPA Eligibility Requirements
3 You are eligible if your household income is median or below (after taxes), your home is an eligible property type, and you have recent receipts for the purchase of at least 500 litres of heating oil to heat your home in the past 12 months.
Important: 3The grant payment must be used toward the purchase and installation of an eligible heat pump system (air source, cold climate air source, or ground source) and the required eligible costs associated with its installation.
The eligible costs also include: oil tank removal, necessary electrical upgrades, and switching over oil-based hot water heaters.
Note: 9Hybrid cold climate heat pump systems (central ducted heat pumps paired with an oil, gas or propane-fired furnace) are not eligible under this program. The system must be fully electric.
CleanBC Energy Savings Program: Up to $16,000 for Oil Conversions
In BC specifically, the CleanBC Better Homes Energy Savings Program provides additional generous rebates for oil-to-heat-pump conversions.16 Based on your household income, the CleanBC Better Homes Energy Savings Program covers up to 100% of the upgrade cost for households switching from oil to an electric heat pump.
Maximum Rebate Amounts (2026)
| Income Level | Central Ducted Heat Pump | Multi-Split / Mini-Split | Electrical Upgrade |
|---|---|---|---|
| Level 1 (Lowest Income) | Up to $16,000 | Up to $16,000 | Up to $5,000 |
| Level 2 (Low-Middle Income) | Up to $12,000 | Up to $10,000 | Up to $5,000 |
| Level 3 (Middle Income) | Up to $10,500 | Up to $8,000 | Up to $3,500 |
15 The program provides rebates for 100% of the cost of a new heat pump, up to a cap that varies by the type of heat pump. This means that households may be eligible to receive a free heat pump from the program, with the maximum rebate amount for heat pumps increased from $9,500 to $16,000. 11 Participants will not need to pay up front for heat-pump installations and other efficiency upgrades. 15 Once upgrades are completed by a program-approved contractor, the contractor submits the final rebate application and deducts the rebate amount from the final cost of the upgrade.
As a BC Hydro & CleanBC Registered Contractor, Blue Ridge Heating & Cooling handles 100% of your rebate paperwork and deducts the rebate directly from your invoice — so you never pay full price out of pocket.
Not sure which heat pump is right for your home? Check out our comparison: Mitsubishi vs Daikin Heat Pump: Installer’s Honest Review.
2026 Rebate Stacking Guide for Oil Conversions
One of the biggest advantages of converting from oil is the ability to stack multiple rebate programs. Here’s what a typical Lower Mainland homeowner could access:
Rebate Stacking Example (Income-Qualified Household)
| Program | Maximum Amount |
|---|---|
| CleanBC Energy Savings Program (heat pump) | Up to $16,000 |
| CleanBC Electrical Upgrade Rebate | Up to $5,000 |
| Federal OHPA Program (oil conversion) | Up to $10,000 |
| Federal OHPA $250 Bonus | $250 |
| Potential Total Rebates | Up to $31,250 |
⚠️ Important Note: You typically cannot “double-dip” on the same rebate category. In BC, the CleanBC Energy Savings Program for oil conversions is delivered in partnership with the federal OHPA funding. The actual combined maximum depends on your income level, the type of heat pump installed, and how the federal/provincial programs are co-delivered. During your free in-home estimate, our team will map out the exact rebates available for your specific situation.
11 The expanded CleanBC Better Homes Energy Savings Program is a result of a $151-million investment from the Province and a federal investment of $103.7 million from Canada’s Low Carbon Economy Fund and the Oil to Heat Pump Affordability (OHPA) program.
For the most comprehensive and current breakdown of available provincial rebates, see our dedicated guide: CleanBC Heat Pump Program 2026: How to Get Up to $11,000 Back.
Complete Cost Breakdown: Oil to Heat Pump Conversion in BC (2026)
Here’s what a typical oil-to-heat-pump conversion costs in Surrey, Vancouver, and the Lower Mainland — based on projects we’ve completed in 2025 and 2026:
Cost Breakdown Table
| Item | Estimated Cost |
|---|---|
| Oil tank removal (above-ground) | $500–$1,500 |
| Oil tank removal (underground, no contamination) | $2,000–$4,000 |
| Oil furnace/boiler decommissioning & removal | $500–$1,200 |
| Soil remediation (if contamination found) | $3,000–$15,000+ |
| Electrical panel upgrade (if needed) | $1,500–$4,000 |
| Cold-climate heat pump (supply + install) | $10,000–$18,000 |
| Ductwork modification (if switching to ducted system) | $1,000–$4,000 |
| Permits & inspections | $200–$500 |
| Total Before Rebates | $15,000–$25,000 |
| Less: Available Rebates | ($10,000–$21,000) |
| Your Net Cost (Income-Qualified) | $0–$8,000 |
For many income-qualified BC homeowners switching from oil, the conversion can be free or near-free after stacking available rebates.
Want a detailed breakdown of heat pump costs by brand and type? Visit our Heat Pump Cost Guide BC 2026.
Step-by-Step: The Oil to Heat Pump Conversion Process
Here’s exactly what happens when you convert from oil to a heat pump with Blue Ridge Heating & Cooling. We’ve streamlined this process over hundreds of installations:
Step 1: Free In-Home Assessment & Rebate Eligibility Check
We visit your home, assess your current oil heating system, evaluate your ductwork and electrical panel, and perform a full heat load calculation. We also review your household income eligibility for all available rebates.
This step is 100% free with no obligation. Book your assessment here.
Step 2: Custom System Design & Proposal
Based on the heat load calculation, we design the optimal heat pump system for your home. This includes selecting the right equipment — whether that’s a ducted or ductless system — and recommending the best brand for your budget and needs.3 The OHPA program requires that the eligible heat pump system be capable of distributing heat throughout the entire conditioned space in the house. This applies regardless of whether the eligible heat pump system is a central ducted, mini- or multi-split ducted or ductless system. For a typical house, this usually requires a minimum of one warm air supply outlet or indoor head per floor.
Step 3: Rebate Application & Approval
We prepare and submit all rebate paperwork on your behalf — CleanBC, OHPA, and any applicable municipal incentives. You don’t chase a single form.
Step 4: Oil System Decommissioning
A qualified contractor safely disconnects and removes your oil furnace or boiler, drains and removes the oil tank, and properly disposes of all components. If you have an underground storage tank, additional soil testing is required (more on this below).
Step 5: Electrical Upgrades (If Needed)
Many older homes with oil heat have 100-amp electrical panels. A heat pump typically requires a 200-amp panel. We coordinate the electrical upgrade and include this cost in your rebate application.
Step 6: Heat Pump Installation
Our Red Seal certified technicians install your new cold-climate heat pump, connect it to your existing ductwork (or install new indoor heads for ductless systems), commission the system, and test every function for optimal performance.
Step 7: Inspection, Documentation & Rebate Finalization
We complete the mandatory contractor attestation form, ensure all BC Safety Authority requirements are met, and finalize your rebate — deducting it directly from your final invoice.
Step 8: Orientation & Ongoing Support
We walk you through your new system’s controls, set optimal temperature settings for BC’s climate, and enrol you in our maintenance plan to keep your warranty valid and your system running at peak efficiency.
What Happens to Your Oil Tank? BC Removal Requirements
This is one of the most common questions we get, and one of the most important parts of the conversion process.
Above-Ground Oil Tanks
Above-ground tanks are simpler to remove. A qualified contractor drains remaining oil, disconnects lines, removes the tank, and disposes of it at an approved facility. Cost: typically $500–$1,500.
Underground Oil Storage Tanks (USTs)
Underground tanks are more complex and regulated. 22The BC Fire Code and bylaws of twelve municipalities (including the City of Vancouver) all essentially require that out-of-service underground oil storage tanks be removed and that all contaminated soil must be removed and replaced with clean fill.23 In Vancouver, all heating oil storage tanks that haven’t been used for two years must be removed.
The underground tank removal process involves:
- Permitting — Obtain removal permits from your local fire authority
- Utility locates — Contact BC One Call before any excavation
- Excavation & extraction — Carefully expose and remove the tank
- Soil sampling — 28Collect soil samples for laboratory analysis to determine if contamination exists.
- Soil remediation (if needed) — 28If contamination is found, excavate and properly dispose of contaminated soil at certified facilities, backfill with clean soil, and conduct verification testing.
- Inspection & documentation — Obtain fire authority sign-off and environmental clearance
29 If there is no soil contamination and the tank can be more easily removed, the costs range from $2,000 to $3,000. However, if significant contamination is found, 28 cleanup costs can exceed $100,000. This is rare, but it underscores why removing an aging oil tank sooner rather than later is critical — the longer it sits, the greater the risk of leakage. 30 To access the CleanBC Better Homes rebate program, you must remove and dispose of your oil heating equipment in accordance with all relevant regulations, including the BC Fire Code.
We coordinate the entire oil tank removal process with trusted, licensed removal contractors so you never have to manage multiple companies.
Real-World Case Study: Surrey Oil-to-Heat-Pump Conversion
The Situation
A homeowner in South Surrey contacted Blue Ridge with a 25-year-old oil furnace. Their above-ground oil tank was rusting, they were spending over $4,200 per year on heating oil, and they were tired of the unpredictable costs and oil smell in their basement.
What We Did
- Conducted a free in-home assessment and determined their home was eligible for both the OHPA program and CleanBC Energy Savings rebates
- Designed a cold-climate ducted heat pump system (Mitsubishi Zuba Central) that connects to their existing ductwork
- Coordinated oil tank and furnace removal with a certified contractor
- Upgraded their electrical panel from 100A to 200A
- Installed and commissioned the new system in 2 days
Cost Breakdown
| Item | Cost |
|---|---|
| Ducted cold-climate heat pump (supply + install) | $16,500 |
| Oil tank + furnace removal | $1,200 |
| Electrical panel upgrade | $3,200 |
| Permits | $350 |
| Total Before Rebates | $21,250 |
| CleanBC Energy Savings Rebate | –$14,000 |
| Electrical Upgrade Rebate | –$3,500 |
| OHPA $250 Bonus | –$250 |
| Homeowner Paid | $3,500 |
The Results
- Annual heating cost dropped from $4,200 to approximately $1,400 — a savings of $2,800/year
- Payback period on the $3,500 investment: approximately 15 months
- Added bonus: The heat pump now provides air conditioning in summer — no separate AC needed
- Home value increase: Upgrading from oil to a modern heat pump system adds measurable value at resale
Worried about heat pump performance in winter? Read our detailed guide: Do Heat Pumps Work in Cold Weather? BC Performance Guide.
Ducted vs. Ductless: Which Heat Pump for Your Oil Conversion?
When replacing an oil furnace, you have two primary options:
Ducted (Central) Heat Pump
Best for: Homes with existing ductwork in good condition (most oil-heated homes have ducts).
- Connects to your existing forced-air duct system
- Single outdoor unit, single indoor air handler
- Invisible — no wall-mounted heads
- Typically higher rebate amounts (up to $16,000)
Ductless Mini-Split / Multi-Split
Best for: Homes without ductwork, or where existing ducts are in poor condition.
- Individual indoor heads in each room
- Zone-by-zone temperature control
- Lower installation cost if no ductwork exists
- Ideal for additions or hard-to-heat rooms
For a detailed comparison, visit our guide: Ductless vs Ducted Heat Pump Guide.7 When compared with other electric home heating sources, heat pumps are two to three times more efficient. Regardless of which configuration you choose, a properly sized cold-climate heat pump will dramatically outperform your old oil furnace in both efficiency and comfort.
Frequently Asked Questions: Oil to Heat Pump Conversion in BC
1. How much does it cost to convert from oil to a heat pump in BC?
The total cost before rebates typically ranges from $15,000 to $25,000, depending on the heat pump type, oil tank removal complexity, and whether electrical upgrades are needed. After rebates, many income-qualified homeowners pay $0–$5,000 out of pocket. Contact us for a free estimate specific to your home.
2. What rebates are available for oil-to-heat-pump conversions in BC in 2026?
3 The federal OHPA program provides up to $10,000 toward the costs of switching from oil heating to an eligible heat pump system. 15 The CleanBC program offers income-qualified applicants a rebate of as much as $16,000 to switch to high-efficiency heat pumps from oil. Additional rebates of up to $5,000 are available for required electrical upgrades.
3. Do I have to remove my oil tank when I switch to a heat pump?
Yes. 22The BC Fire Code and bylaws of twelve municipalities require that out-of-service underground oil storage tanks be removed and that all contaminated soil must be removed and replaced with clean fill. Above-ground tanks must also be properly decommissioned and removed. Blue Ridge coordinates this entire process for you.
4. Can a heat pump replace my oil furnace in BC’s cold winters?
Absolutely. Modern cold-climate heat pumps are rated to operate efficiently down to –25°C or colder. 7Heat pumps are one of the best ways for homeowners to get off heating oil. When compared with other electric home heating sources, they are also two to three times more efficient. For a deep dive, read Do Heat Pumps Work in Cold Weather? BC Performance Guide.
5. How long does the conversion process take?
From initial assessment to completed installation, most oil-to-heat-pump conversions take 2–4 weeks, including rebate processing and oil tank removal coordination. The heat pump installation itself typically takes 1–2 days.
6. Do I need to upgrade my electrical panel?
In many cases, yes. Homes with oil furnaces often have 100-amp electrical panels, while heat pumps typically require 200-amp service. 15The maximum rebate amount for electrical service upgrades needed to install a heat pump has been increased from $3,500 to $5,000. We include this in your rebate application.
7. Will I still need a backup heating source?
For most homes in the Lower Mainland, a properly sized cold-climate heat pump will handle 100% of your heating needs without backup. In some cases, we install an electric plenum heater as a supplementary source for the coldest nights. 13Any supplemental heat required must be electric. Natural gas, oil or propane must not be used.
8. Who handles the rebate paperwork?
Blue Ridge Heating & Cooling handles 100% of your rebate paperwork. As a BC Hydro & CleanBC Registered Contractor, we submit all applications, track approvals, and deduct the rebate directly from your invoice. You never chase a form, make a phone call, or wait for reimbursement cheques.
Why Choose Blue Ridge Heating & Cooling for Your Oil-to-Heat-Pump Conversion?
Switching from oil to a heat pump involves multiple trades, multiple rebate programs, and strict regulatory requirements. Blue Ridge is the single point of contact that manages everything:
- ✅ Red Seal Certified — Vahid Isapur and our team hold the highest HVAC credentials in Canada
- ✅ BC Hydro & CleanBC Registered Contractor — We’re pre-approved to process your rebates
- ✅ BC Safety Authority Registered — Every installation meets or exceeds code
- ✅ We handle 100% of rebate paperwork — CleanBC, OHPA, electrical upgrade rebates
- ✅ Free in-home estimates — No pressure, no obligation
- ✅ Transparent upfront pricing — You know the exact cost before we start
- ✅ Under 60-minute emergency response — 24/7 for urgent heating failures
- ✅ 4.9/5 stars from 100+ Google reviews — Real homeowners, real results
- ✅ Fully licensed & insured (WorkSafeBC) — Complete peace of mind
- ✅ 15+ years serving Greater Vancouver — Surrey, Burnaby, Vancouver, Coquitlam, Langley, Richmond, Delta, and beyond
Explore our full range of HVAC services in Surrey and throughout the Lower Mainland.
Ready to Ditch Your Oil Furnace? Here’s Your Next Step
Converting from oil to a heat pump is one of the smartest investments a BC homeowner can make in 2026. With rebates potentially covering the entire cost, annual savings of $1,300–$2,800+, and the added comfort of year-round heating and cooling, there’s never been a better time.
Here’s how to get started:
📞 Call (604) 615-2212 — Talk directly to our team 📋 Book a Free In-Home Estimate — We’ll assess your home, design the perfect system, and map out every dollar of rebates you qualify for
We serve homeowners across Surrey, Burnaby, Vancouver, Coquitlam, Port Coquitlam, Langley, Richmond, Delta, North Vancouver, West Vancouver, Maple Ridge, New Westminster, White Rock, Port Moody, Pitt Meadows, Abbotsford, Chilliwack, and surrounding areas.
Don’t let another winter pass paying $4,000+ for oil heat. Let Blue Ridge show you a better way.
Related Articles
- CleanBC Heat Pump Program 2026: How to Get Up to $11,000 Back
- Do Heat Pumps Work in Cold Weather? BC Performance Guide
- Heat Pump Cost Guide BC 2026
- Ductless vs Ducted Heat Pump Guide
- Mitsubishi vs Daikin Heat Pump: Installer’s Honest Review
- Heat Pump Maintenance Checklist
- Heat Pump Installation Surrey & Vancouver