N.S. heating rebate stays at $400 as advocates call it too low

Nova Scotia has reopened its annual low-income heating rebate for the coming winter, but at the same reduced amount and income limits that have drawn criticism for the past two years, according to The Cool Down.

What happened

Under the province's Heating Assistance Rebate Program (HARP), individuals with net income up to CA$30,000 and households with net income up to CA$45,000 can apply for a CA$400 rebate between October 1 and March 31, The Cool Down reported, citing the CBC. The program's overall budget is about $33 million.

The outlet noted that roughly 54,000 of an estimated 70,000 eligible households applied last year, leaving about a third of the budget unused — some $11 million was returned to general revenues rather than spent on rebates.

Advocates say the support hasn't kept pace with the cost of staying warm. Miriam Williams of ACORN told the CBC, as reported by The Cool Down, "They've already cut out eligibility for way too many families." The income thresholds and rebate amount have both been trimmed since 2022-23, when the cap reached $85,000 and payments ranged from $600 to $1,000; Service Nova Scotia Minister Jill Balser pointed to the province's budget constraints, including a $1.4 billion deficit, as the reason for the current limits.

HARP is a Nova Scotia program, so it doesn't apply outside the province. But the underlying pressure it responds to — rising electricity and heating-oil costs squeezing household budgets through the winter — is familiar to homeowners across Canada, and it's pushing more people to ask whether replacing an old furnace or oil system is worth the upfront cost.

What's actually available elsewhere in Canada

The federal grant and loan streams under the Canada Greener Homes program have closed. One federal program is still running for homes that heat with oil: the Oil to Heat Pump Affordability initiative offers up to $10,000, or up to $25,000 where delivered jointly with a province, though applications close July 31, 2026 in Alberta, Manitoba, the Northwest Territories, Quebec and Saskatchewan.

Ontario homeowners have more on the table through Home Renovation Savings: up to $7,500 toward a cold-climate air-source heat pump in electric, oil, propane or wood-heated homes (or up to $2,000 for gas-heated Enbridge customers), plus incentives for solar, battery storage, windows and insulation. Pre-approval and a participating contractor are required, so it's worth checking eligibility before signing a quote.

Outside Ontario and the oil-heating program, most homeowners this winter are weighing heating upgrades against their regular budget rather than a rebate — which makes it worth knowing what the work actually costs.

What it means for your heating budget

If an oil or electric furnace is near the end of its life, a heat pump is the main upgrade federal and provincial incentives are built around right now. A ducted air-source heat pump Heat pump installation typically runs $12,000, with a realistic range of $9,350 – $15,600 depending on house size and ductwork condition. Basic single-stage systems start around $9,800, while larger or multi-zone premium installs can reach $15,800.

For homes staying on gas, Canadian regulations require new gas furnaces to meet a 95% minimum efficiency rating, so a straight swap tends to land around $5,500, with basic single-stage units from $5,150 and modulating, high-efficiency models up to $9,650. Venting and ductwork changes add to that, which is a common source of quote surprises.

Water heating is a smaller but related cost: a standard tank swap is typically $2,500, while a heat pump (hybrid) water heater sits at the higher end of that range and cuts electricity use over the tank's life.

We calculate these figures from labour hours at local trade rates plus current material costs, then check them against market pricing and real contractor quotes — they're shown before GST/HST.

The bottom line

Nova Scotia's rebate debate is a reminder that heating-cost support varies a lot by province and changes from year to year, so it's worth checking what's currently open before budgeting a project — assistance you were counting on last winter may not be there this winter, and vice versa. Outside of grants, the best protection against a bad quote is still comparing it to a realistic local range. If you've already got a number from a contractor, our "is my quote fair" tool can tell you whether it's in line with what similar jobs cost in your area before you commit.