Feds investing almost $50M for green energy initiatives on P.E.I.

The federal government is investing almost $50 million to reduce energy costs and support climate action on P.E.I.

The money,from Canada's Low Carbon Economy Fund, will be divided into two parts:

• Up to $16.8 million for provincial Home Heating Oil Transition programming to support low-income homeowners' transition from home heating oil to more affordable low-emitting heating technologies.
• Up to $31.9 million for provincial initiatives that support Canada's 2030 greenhouse gas emissions reduction target and align with Canada's goal of net-zero emissions by 2050.

The federal government will work with the province to finalize an agreement on the delivery of the funding.

The funding comes just as the price of heating oil is about to jump. Ever since the federal price on carbon came in in 2019, heating oil on P.E.I. has been exempt.

That exemption ends on July 1, when the carbon tax on P.E.I. heating oil debuts at 17 cents per litre.

Data from StatsCanada show the uptake on heat pumps in P.E.I. has been well above the national average, with the percentage of homes using them roughly tripling from 2016 to 2021.

But many households still rely on oil to heat their homes.

P.E.I. Environment Minister Steven Myers said the province will use this new funding to ramp up the program offering free heat pumps to low-income households.

"My motto has always been the carbon tax has come on, let's get ahead of it. So let's get people switched over," he said.

"Our public transit was an effort to reduce fossil fuel consumption or need on Prince Edward Island, and our heat pump program is one that will help people stay warm in their homes without having to worry about the fluctuation of pricesof oil."

Eligible households

The program is available to households whose total income is less than $75,000.

Myers said they are trying to make sure everyone eligible under that bracket is processed before moving to a second program, which is for households that make less than $100,000.

The federal funding is in addition toNatural Resources Canada's Oil to Heat Pump Affordability Program, in which eligible homeowners with low-to-moderate incomes can receive up to $10,000 in federal support when including funding available from the Canada Greener Homes Grant.