Prince Edward Island has temporarily suspended intake for two flagship heat pump incentive programs and reduced rebate amounts effective June 2, 2025, citing unprecedented demand that exhausted available funding. The abrupt changes impact HVAC contractors and homeowners navigating the province’s energy transition goals.
The paused programs include the Oil to Heat Pump Affordability (OHPA) and Net Zero Free initiatives. Simultaneously, PEI slashed rebates by 25%, reducing low-income household incentives from $2,400 to $1,800 per outdoor unit and capping mini-split rebates at $900. For HVAC technicians like myself who’ve installed hundreds of units across the island, this feels like showing up to a job only to discover the homeowner’s discount vaporized mid-install.
Provincial officials attribute the suspension to “extraordinary uptake” that overwhelmed program capacity. The demand surge underscores islanders’ eagerness to transition from oil heating – a trend we’ve witnessed firsthand in packed installation schedules. Yet the rebate reduction delivers a gut punch to low-income families, where that $600 difference often decides whether a heat pump project proceeds.
Notably, insulation and building envelope incentives escaped cuts, instead receiving a 40% boost while expanding eligibility to rental properties. This signals a pragmatic shift toward holistic efficiency – after all, even the most advanced heat pump struggles in a home leaking heat like a sieve. Federal supports remain available, including the 30% tax credit (up to $5,000) through the Canada Greener Homes Initiative.
For contractors, the changes demand recalibration. We’re now advising clients to bundle insulation upgrades with heat pump installations to maximize remaining incentives. Precise load calculations become even more critical – oversizing units is costlier than ever without robust rebates. While frustrating, this pause confirms heat pumps’ mainstream adoption in Atlantic Canada. Training investments like the $500,000 for heat pump technician development will help meet future demand when programs relaunch.
The province hasn’t announced a restart date but emphasizes this is a “pause,” not cancellation. For now, HVAC teams must navigate tighter margins while reminding customers that long-term energy savings – often $1,500+ annually when switching from oil – remain compelling even with reduced upfront support. As one colleague quipped, “The technology’s value didn’t change, just the government’s share of the check.”
