Oil Heating Phase-Out in Québec: What the End of Oil Heating Means for Converting and Valuing Your Plex

ImmoMulti — direct buyer of income properties on the North Shore — closely follows the regulation reshaping how Québec buildings are heated. Since December 31, 2021, installing an oil heating appliance in a new build has been prohibited. And since December 31, 2023, at the end of an existing oil system's life, it is prohibited to replace it with a fossil-fuel appliance: you must move to a less-polluting source such as electricity or a heat pump. For the owner of a plex still heated with oil, this regulatory obligation changes the math on costs, grants and resale value. Here is what you need to know, verified at the source.

What exactly does Québec's oil heating regulation say?

The Regulation respecting oil-fired heating appliances, adopted on November 17, 2021, prohibits installing an oil appliance in any new residential construction since December 31, 2021, and since December 31, 2023 prohibits replacing an oil appliance with a fossil-fuel appliance in existing buildings of 600 m² or less and no more than three storeys.

The Québec government adopted this regulation on November 17, 2021, as part of its Plan for a Green Economy 2030. The stated goal: cut greenhouse-gas emissions from building heating by 50% by 2030. Nearly 200,000 Québec households still owned an oil heating appliance at the time of adoption.

The regulation sets out two main prohibitions for owners of plexes and multi-unit buildings:

• Since December 31, 2021: it is prohibited to install an oil heating appliance in a new residential construction.
• Since December 31, 2023: it is prohibited to install an oil appliance in an existing building and to replace an oil appliance with one powered by a fossil fuel — which also targets natural gas.

The replacement ban applies to existing buildings of 600 m² or less and no more than three storeys (single-family homes, duplexes, triplexes). It covers boilers, furnaces and water heaters using oil to heat spaces or water.

Source: Gouvernement du Québec — "Chauffage au mazout" and regulation adoption release (November 17, 2021).

Do I have to convert my plex right away at the appliance's end of life?

No. You may keep using your existing oil appliance as long as it works. The conversion obligation to a less-polluting source is triggered when you replace the appliance (end of life) or when a major repair is needed. Maintenance and minor repairs remain allowed if the appliance is less than 20 years old (less than 10 years for a water heater).

The regulation does not force you to tear out a functioning oil system. As long as your appliance is not at end of life and does not need a major repair, you may keep using it. It is at the moment of replacement that conversion to a less-polluting source becomes mandatory.

The tipping point is therefore the repair and the age of the appliance:

• Maintenance and minor repairs (electronic components, for example): allowed as long as the heating appliance is less than 20 years old, or less than 10 years for a water heater.
• Major repairs (replacing the combustion chamber or the heat exchanger): prohibited. The appliance must then be replaced with a non-fossil system.

For a plex owner on the North Shore, this means an ageing oil furnace represents a conversion to plan for — not an overnight emergency, but a regulatory expense now unavoidable at the next major breakdown.

How much does it cost to convert an oil system for a plex?

The cost depends on the number of units, the building's layout, the type of heat pump chosen and the dismantling of the tank and furnace. For a North Shore plex, the per-unit cost can be reduced by Hydro-Québec assistance and federal programs. Get several quotes from qualified contractors.

Converting a multi-unit building from oil to electricity or a heat pump actually bundles several expense lines. Here are the main ones to anticipate:

Rather than quoting a misleading single figure, remember that the per-unit cost is what matters for a plex: a triplex means three units to convert. A properly sized heat pump then lowers the annual energy bill, improving the building's net operating income over the long run. To scope your building's work envelope, our renovation calculator can help you structure the budget.

What financial assistance is available to convert a multi-unit building's heating?

Hydro-Québec's LogisVert program offers assistance for purchasing and installing heat pumps, with a bonus for multi-unit dwellings starting in June 2026. The provincial Chauffez vert program ended on March 31, 2026. Federal programs may also apply. Always confirm eligibility with official sources.

The good news for the owner who must convert: the regulatory obligation comes with an ecosystem of grants. Be careful, though — the landscape changed in 2026.

• LogisVert (Hydro-Québec): assistance for purchasing and installing efficient heat pumps. Hydro-Québec announced a bonus financing for eligible multi-unit dwellings starting in June 2026. For housing offices, the assistance can reach $5,000 per unit per eligible heat pump. Appliances must be purchased and installed between March 16, 2026 and December 31, 2028.
• Chauffez vert (Québec): this provincial program supported the conversion of oil or propane equipment. It ended on March 31, 2026 — you had to complete the work and submit your application before that date to benefit.
• Federal programs: depending on your situation, Government of Canada programs (greener homes grant, heat-pump program) may top up the assistance. Terms evolve; confirm eligibility before committing to expenses.

For the amounts that apply to your project, Hydro-Québec's LogisVert portal lets you submit an application and calculate the assistance based on your building. Note that in a designated "energy-insecure" area, a bonus of $100 per 1,000 BTU/h at -8 °C can be added, bringing the assistance to $220 per 1,000 BTU/h at -8 °C for an ENERGY STAR wall-mounted heat pump designed for cold climates.

Source: Hydro-Québec — LogisVert program and Gouvernement du Québec — Chauffez vert (program end: March 31, 2026).

Does converting the heating increase my North Shore plex's value?

Replacing an old oil system with an electric heat pump lowers operating costs, removes the environmental risk of the tank and eliminates a latent regulatory expense for a buyer. A plex still on oil and near end of life represents a mandatory conversion to come, which a buyer will deduct from their offer.

From the standpoint of a savvy multi-unit buyer, a heating system is analyzed through three lenses: operating cost, risk and regulatory compliance. A plex still heated with oil ticks three negative boxes at once:

• Operating cost: oil remains more volatile and often more expensive than electricity in Québec.
• Environmental risk: an ageing oil tank carries a risk of leakage and soil contamination, with financial liability for the owner.
• Latent regulatory expense: the buyer knows that at the next major breakdown, conversion will be mandatory — and prices it in.

Conversely, a plex already converted to electricity or a heat pump presents as a modern, compliant and efficient building. On the North Shore, that is generally a resale asset. To measure how lower operating costs affect profitability, our yield calculator helps compare net operating income before and after conversion.

My plex is still on oil — convert before selling or sell as-is?

Two options: convert before selling to present a compliant, efficient building while using the grants still available; or sell as-is to a buyer who takes on the conversion. ImmoMulti buys North Shore multi-unit buildings as-is, including those still on oil, with a direct offer within 48 hours.

The choice depends on your horizon and your ability to front the work. Converting before selling can maximize the listed price and widen the buyer pool, but takes time, quotes and an upfront investment — even if reduced by grants. Selling as-is avoids fronting funds and coordinating a worksite, in exchange for a price that factors in the conversion to come.

For the plex owner on the North Shore who does not want to manage a conversion worksite, a direct sale is a simple route. ImmoMulti buys duplexes, triplexes and multi-unit buildings as-is, including those still heated with oil, with an offer within 48 hours, no broker and no commission. You recover your capital without taking on the cost or risk of the work.

This article presents the general regulatory framework. For a specific case — the state of your tank, environmental liability, grant eligibility — consult a certified contractor and, if needed, a notary or tax advisor.

Informational content · Does not constitute legal or tax advice. Verify program details and eligibility with official sources before committing.