The federal and provincial governments have announced an increase to the Oil to Electric Incentive program.

The $24-million agreement will see the maximum amount people can receive to transition from oil to heat pumps increase from $17,000 to $22,000.

To date, the province says over 2,000 households have applied to switch their furnaces to heat pumps through the Oil to Heat Pump Affordability Program, and they anticipate some 3,000 homes to transition over the coming year.

MP Gudie Hutchings says she is hearing about the benefits of switching already from people in her riding.

She has heard from people who are saving upwards of $800 per month in the winter on heating.