How much does it cost to convert oil heat to a heat pump in New Brunswick?

Converting from oil to heat pump in New Brunswick typically costs $8,000 to $18,000 for a complete system, depending on your home size, existing ductwork, and whether you keep the oil furnace as backup.

The heat pump equipment and installation runs $6,000-$12,000 for a ducted system covering 1,200-2,000 square feet. Cold-climate models rated to -25°C or below are essential for New Brunswick winters — brands like Mitsubishi, Daikin, and Carrier offer reliable options. If your home lacks ductwork, mini-split systems cost slightly less but require multiple indoor units for whole-home coverage.

Oil tank decommissioning adds significant cost depending on your setup. Above-ground tanks cost $500-$1,500 to remove and dispose of properly. Underground tanks are far more expensive — $2,500-$8,000+ — because they require licensed removal, soil testing, and potential remediation if leaks occurred. Many older New Brunswick homes, especially those built in the 1960s-1980s, have underground tanks that homeowners discover during conversion.

Electrical upgrades often push costs higher. Heat pumps require 220V service and dedicated circuits. If your electrical panel is older or undersized, expect $2,000-$5,000 for panel upgrades. All electrical work requires a licensed contractor (licensed through NB Dept. of Justice and Public Safety — Technical Inspection Services), an NB Power wiring permit (1-800-615-0522), and TIS inspection.

Most homeowners keep their oil furnace as backup heating for the coldest weeks when heat pumps lose efficiency. This hybrid approach costs less than full removal and provides peace of mind during -30°C cold snaps common in northern and inland New Brunswick.

NB Power offers rebates through their Total Home Energy Savings Program — typically $500-$2,000 depending on the heat pump efficiency rating. The federal Canada Greener Homes Grant closed in March 2024, so that $5,000 rebate is no longer available.

Professional installation is mandatory — heat pumps involve refrigerant handling, electrical connections, and gas line modifications (if keeping oil backup). The work requires multiple permits and inspections. Get quotes from at least three licensed HVAC contractors who understand New Brunswick's climate demands and can properly size the system for your home's heat loss.

Your biggest variables are the oil tank situation and electrical capacity — have contractors assess both before committing to timeline or budget.