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The furnace market in Nova Scotia

Nova Scotia still has many oil-heated homes alongside a fast-growing heat pump base. In 2026, oil-to-heat-pump grants closed and furnace companies need to rethink how they reach oil customers.

Written by Ali Sedighi, MBALast updated:

Nova Scotia is one of the few provinces where oil furnaces are still a mainstream heating system. Heat pumps have grown quickly, and many homes now run both. For furnace companies, 2026 brought a turning point: the main grant that paid oil-heated households to switch closed to new applicants in July.

Market and buyers

The direct answer: oil, electricity and heat pumps share the market, with gas a minor player.

Statistics Canada's Table 38-10-0286-01 shows that in 2023, 29% of Nova Scotia households used electricity for primary heating, 28% oil and 6% wood, while heat pumps were the primary system for 25%. Halifax is the largest market by far, followed by Cape Breton (Sydney), Truro, East Hants and the Lunenburg and West Hants areas.

Typical buyers:

  • owners of oil-heated older homes deciding between a new oil furnace, a heat pump, or both
  • heat pump households keeping an oil or electric furnace as backup
  • landlords and rural owners for whom reliable winter heat is essential

Climate and seasonality

Winters here are maritime: cold, wet and quick to change, and gentler along the coast than in the interior. Freeze-thaw cycles and storms create sudden demand spikes. Fall is the planning season for oil customers, who also tend to think about fuel deliveries and tank condition then.

Regulators to know

These links are for reference; we do not give compliance advice.

Programs as of October 2026

  • Efficiency Nova Scotia's oil-to-heat-pump program closed to new applicants as of July 2, 2026, with funding fully allocated.
  • Its heat pump rebate page states that rebates are not available for replacement heat pumps; we did not confirm current amounts.
  • A federal backgrounder dated June 29, 2026 set out $26 million, federal and provincial, to expand HomeWarming and the African Nova Scotian Communities Retrofit Program, reaching about 1,600 more households.
  • Efficiency Nova Scotia's oil program page also flags changes to its Moderate Income Rebate.

Confirm current amounts with Efficiency Nova Scotia before quoting them. Our oil conversion brief covers the national picture.

Questions Nova Scotia homeowners ask

  • "Can I still get the oil-to-heat-pump grant?" Not as a new applicant; Efficiency Nova Scotia closed it on July 2, 2026.
  • "Is there a rebate if I replace my old heat pump?" Efficiency Nova Scotia's heat pump rebate is listed for new heat pumps, not replacements.
  • "Should I keep my oil furnace?" Many homes keep it as backup; the right answer depends on the house, and your technician should explain the options.
  • "What will happen to my oil tank?" Explain your removal process and any provincial requirements, pointing to official sources rather than giving legal advice.

A single, dated page answering these four questions will save your office staff hours each week during the fall planning season, and it signals that your company keeps up with the programs.

Local business mix and how we would market here

Nova Scotia's heating trade blends oil service companies, heat pump installers and firms doing both. Many oil companies built their customer lists over decades of deliveries and service plans.

Our approach here:

  1. Rework oil-customer messaging. With the grant closed to new applicants, the conversation shifts to costs, comfort, reliability and remaining rebates. Avoid any suggestion that the old grant is still available.
  2. Market hybrid set-ups honestly. Many homes keep an oil furnace as backup to a heat pump. Our dual-fuel campaign service handles that offer.
  3. Note the new-versus-replacement rule. Efficiency Nova Scotia's heat pump rebate is for new heat pumps only; say so plainly.
  4. Date every program page. Several programs changed in 2025 and 2026; our rebate content service keeps pages current.

See the coverage hub for neighbouring provinces. We are a marketing service, not a heating contractor.

Frequently asked questions

How many Nova Scotia homes heat with oil?

Statistics Canada reports that in 2023, 28% of Nova Scotia households used oil for their primary heating system, 29% electricity and 6% wood. Heat pumps were the primary system in 25% of households.

Is Efficiency Nova Scotia's oil-to-heat-pump program open?

No. Efficiency Nova Scotia closed it to new applicants as of July 2, 2026, with funding fully allocated.

Are there still heat pump rebates in Nova Scotia?

As of October 2026, Efficiency Nova Scotia lists heat pump rebates for new systems and states that they are not available for replacement heat pumps. Check its product pages for current amounts.

Sources

  1. Statistics Canada Table 38-10-0286-01 (reference year 2023) (2025-09-22)
  2. Efficiency Nova Scotia: Oil to Heat Pump Affordability Program (2026-10-22)
  3. Efficiency Nova Scotia: Heat pump rebates (2026-10-23)
  4. Natural Resources Canada backgrounder: CGHAP agreements with Quebec, BC, Nova Scotia and PEI (2026-06-29) (2026-06-29)