Apply early: budget watchdog warns Ottawa's heat pump grant faces a funding shortfall

Still thinking about applying for Ottawa's heat pump incentive? Ottawa's budget watchdog warns the grant program could run out of money sooner rather than later.

In a report released Thursday, the Office of the Parliamentary Budget Officer (PBO) says that if all eligible Canadians applied for the program — roughly 244,000 households nationwide — it would cost the government $2.7 billion.

The PBO says that while it's unlikely that all 244,000 households will apply, the program is liable to face a shortfall even if only those expected to apply actually ask for the money.

The report says that as of mid-October 2023,10,000 households had been approved for or had received funding from the program. Based on that trend, the PBO estimates the program will run out of money before it runs out of applicants — unless� the government increases its budget allocation from $750 million over the next five years to $797 million.

«Those who are on the fence … it's probably a good idea to send in their applications sooner rather than later,» said Parliamentary Budget Officer Yves Giroux. "(That's) based on discussions we had with public servants."

In a media statement, the press secretary to Minister of Energy and Natural Resources Jonathan Wilkinson called the program a «success to date» but stopped short of saying it might be in line for more money.

«As is standard practice, [Natural Resources Canada] evaluates programs throughout their lifetime to ensure any decisions made about the program beyond its current timeline are in the best interest of Canadians, especially with regards to affordability and climate action,» said Carolyn Svonkin.

Ottawa's Oil to Heat Pump program offers homeowners in all provinces grants to switch from home heating oil