Change in rules around heat pump financing not expected to cool sales

Although recent legislation passed at Province House removes a financing option for people looking to purchase a heat pump, the general manager of one company says he doesn't expect it to slow business.

"I don't think it's going to be a problem at all," said John Devereaux of Ground Hog Geothermal and Heat Pump Ltd.

Among amendments to the Public Utilities Act passed this month is a provision that removes the ability for Nova Scotia Power to finance heating equipment, such as heat pumps, through customer power bills.

A spokesperson for Nova Scotia Power said about 35,000 residential and commercial customers have financed heat pumps, water heaters and electric thermal storage units through that financing program since it began in 1994.

'It's as busy as I've seen it'

But even with the change, Devereaux isn't expecting any impact on his business. Demand for heat pumps is "off the charts," he said.

"With the price of oil … people are literally opening their oil bill and calling me," he said Monday. "It's as busy as I've seen it."

Almost all of Ground Hog's customers throughout Hants County, Halifax Regional Municipality and toward Truro are residential.

Devereaux estimates upward of 40 per cent of them finance their purchase. His company handles all the paperwork for the customer and acts as the contact point with the financing program.

"If there's a credit [application] I would fill it out," he said. "I would basically handle everything for my customer."

Multiple financing options remain

Devereaux estimates that about a fifth of his customers who financed their purchase were using Nova Scotia Power, mostly because they liked the convenience of doing the repayment as part of their power bill.

A spokesperson for Nova Scotia's Natural Resources and Renewables Department said Efficiency Nova Scotia continues to help people connect with a range of programs so they can get off oil and save money on their energy bills.

"You can get an interest-free loan or a rebate on your energy efficiency investment," Patricia Jreige said in an email.

"Many municipalities have programs that allow homeowners to finance these types of upgrades on their property tax bill. Some banks and credit unions provide preferential financing for investments that improve household efficiency."

There is also the introduction of the low-carbon economy fund, expected to be rolled out this winter. That program will use Nova Scotia's share of $120 million in federal funding recently announced by Ottawa to help people in Atlantic Canada buy heat pumps and retire their oil tanks.

"Staff are actively working with federal partners to design the program," said Jreige.

A spokesperson for Efficiency Nova Scotia also pointed to the Canada Greener Homes Loan as an option to help fund a purchase. The agency is continuing discussions with the provincial government and Nova Scotia Power "to provide the best financing options for our customers," Janet Tobin said in an email.