Energy efficiency programs help families and businesses reduce their electricity use and save money. When homes and businesses save electricity, the province can avoid building new generation and transmission infrastructure, saving people money.

Key Numbers:

• 12-year framework
• 14 programs including:
  • 2 new programs
  • 12 continuing and expanding programs
• 18,000 GWh of electricity savings by 2036, equivalent to the annual electricity demand of two cities the size of Ottawa, plus London and North Bay
• 3,000 MW of peak demand savings, equivalent to 70 per cent of the summer peak electricity demand for the entire City of Toronto.
• $10.9 billion budget, which is estimated to bring $23.1 billion of nominal electricity system benefits over 24 years, thereby saving the system (and ratepayers) an estimated $12.2 billion.

Largest Investment in Energy Efficiency in Ontario’s History

^{*Illustrative annual average}

Programs for Residential Consumers

NEW

Home Renovation Savings Program: The new Home Renovation Savings Program will offer rebates for home renovations and energy-efficiency improvements, including

• $600 for a home energy assessment
• $100 per new window and door
• Up to $8,900 for insulation
• Up to $250 for air sealing
• $75 for a smart thermostat
• $500 for a heat pump water heater
• Up to $7,500 for a cold climate air source heat pump
• Up to $12,000 for a ground source heat pump
• Up to $5,000 for rooftop solar panels
• Up to $5,000 for battery storage systems

Later in 2025 the program will expand to include rebates for energy efficient appliances, including refrigerators and freezers (rebate levels to be determined).

Generally, rebates could offset up to 30 per cent of the cost of new upgrades. Rebates will be paid within 30 to 60 days of an approved application.

CONTINUING

Peak Perks: provides a financial incentive for residential customers who are willing to conserve energy and reduce air conditioning at peak times and have an eligible smart thermostat connected to a central air conditioning system or heat pump unit. Participants receive $75 for enrolling, as well as $20 for each year they remain enrolled in the program. Peak Perks will be expanded to include more ways for families to automatically reduce energy use, including shifting EV charging and water heating to periods of low demand.

Energy Affordability Program: provides income-eligible households with free energy-saving upgrades, including new appliances (refrigerators, air conditioner, cold-climate air-source heat pump), lighting and insulation. This program is coordinated with additional natural gas-saving upgrades for Enbridge Gas customers through the Home Winterproofing Program.

Programs for Businesses and Communities

NEW

Small Business Peak Perks: The successful Peak Perks program is being expanded to include small businesses. For each eligible smart thermostat connected to a central air conditioning system or heat pump unit that they enroll, participating small businesses will be rewarded with a $75 virtual prepaid credit card, as well as $20 for each year they remain enrolled in the program.

EXPANDING

Retrofit Program: provides support for businesses and institutional customers, including municipalities, hospitals, arenas and schools, to replace equipment such as lighting, HVAC and manufacturing equipment with more energy-efficient models.

The Strategic Energy Management Program: provides training and coaching for energy managers who work for businesses and municipalities so they can deliver energy reductions, either through capital projects or operational improvements and increased productivity at their work sites. Their companies can also receive financial incentives for operational electricity savings achieved when these changes are implemented.

Local Initiatives Program: Through an expanded Local Initiatives Program, the IESO offers enhanced local programming in municipalities and particular neighbourhoods that are facing transmission constraints, to defer expensive transmission upgrades and also improve local reliability.

There will also be funding set aside for local distribution companies to address local issues, where those local priorities also provide much wider benefits, such as lowering local peak energy needs to reduce the need for expensive new poles and wires or transmission station upgrades.

New Local Initiatives Programs will be announced as community needs are identified through regular regional and distribution planning processes.

CONTINUING

The Existing Building Commissioning Program: helps companies to hire experts to help them recommission their building’s operating systems to operate at peak efficiency.

The Energy Performance Program: provides “pay for performance” incentives for companies that lower energy use by a minimum of five per cent within two years, as demonstrated by metered electricity use compared to past history. This program will support businesses that make capital investments, such as higher-efficiency equipment, and operational improvements such as shifting manufacturing to off-peak energy demand hours.

Industrial Energy Efficiency Program: Through this program, large industrial energy-efficiency projects can receive up to $5 million in financial incentives to help reduce their demand on the provincial grid. In exchange, each company must deliver a minimum of 2,000 MWh of electricity savings, equivalent to 240 homes.

Small Business Program: Support specifically targeted to small businesses with 50 employees or fewer to lower electricity bills. Supports include up to $3,000 in incentives for lighting upgrades and up to $2,500 in incentives for other upgrades, including motors for refrigeration and smart thermostats, installed at no cost to the business.

Instant Discounts Program: Instant, point-of-sale discounts are available to existing commercial, agricultural, industrial, institutional and multi-unit residential buildings and facilities in Ontario that purchase eligible lighting products from participating distributors or dealers.

Programs for First Nations

CONTINUING

First Nations Community Building Retrofit Programs: First Nation communities can receive up to $330,000 in funding and technical support for renovations to band-owned community buildings on reserve that will reduce electricity bills. Under the new Energy Efficiency Framework, the IESO will work with First Nation communities to explore options to increase the incentive amount where needed to support larger projects. Programming for on-reserve First Nation communities will continue to evolve in order to be responsive to community needs.

Remote First Nations Energy Efficiency Program: On-reserve homes and businesses, located in remote First Nation communities about to be connected to the province’s electricity grid, can receive funding to implement energy-efficiency projects. This program offers free energy audits to assess how homes or businesses use energy, and based on the results of the audit, free energy savings measures.