Ontario Launches New Energy Efficiency Programs to Save You Money

TORONTO – The Ontario government is launching new energy efficiency programs, including the new Home Renovation Savings Program, to help families and businesses save money. The programs are part of a new $10.9 billion, 12-year investment in energy efficiency, the largest in Canadian history.

“As the demand for electricity continues to rise, we’re giving families and small businesses more ways to save money and energy as we launch the largest energy efficiency program in Canadian history,” said Stephen Lecce, Minister of Energy and Electrification. “Ontario’s new Home Renovation Savings Program will put more money back in your pockets, covering up to 30 per cent of the costs of new windows, doors, insulation, heat pumps, rooftop solar panels, and battery storage.”

The new Home Renovation Savings Program will launch on January 28, 2025, and offer rebates of up to 30 per cent for home energy efficiency renovations and improvements, including new windows, doors, insulation, air sealing, smart thermostats, and heat pumps, as well as rooftop solar panels and battery storage systems for people who want to generate and store energy at home. Later in 2025, the program will expand to include rebates for energy efficient appliances, including refrigerators and freezers.

The government’s Affordable Energy Act, which came into force on December 4, 2024, ensures the new Home Renovation Savings Program, and other program offerings, will be expanded to homeowners who heat their homes by propane and oil, instead of being restricted to those who heat with electricity, as it was under previous governments.

“For 20 years I have spoken on my television shows about investing smartly in homes and businesses, with energy efficiency as a top priority for any renovation or retrofit,” said Mike Holmes, Founder and President of the Holmes Group. “Now, the Ontario Home Renovation Savings Program will make those investments easier, more affordable, and support our province’s future energy sustainability and planning efforts. I hope all Ontarians educate themselves more on the benefits of this program and use it to reduce their energy costs today and tomorrow.”

The province is also expanding the popular Peak Perks program with a new program specifically targeted to small businesses, including convenience stores and restaurants. Businesses will receive a financial incentive of $75 upon initial enrollment in the program and $20 per year for each eligible smart thermostat connected to a central air conditioning system or heat pump unit.

In addition to the two new energy efficiency programs, the province will continue to support 12 Save on Energy programs, including the highly popular Retrofit Program for business, as well as other programs geared to low-income households, businesses, municipalities, institutions, the agricultural sector, industry and on-reserve First Nations communities.

By 2036, it is forecasted that this expansion of energy efficiency programs will reduce the province’s peak demand by 3,000 MW – the equivalent of taking three million homes off the grid. The province’s $10.9 billion investment is also estimated to result in $23.1 billion in electricity system benefits, thereby saving ratepayers $12.2 billion in electricity system costs by avoiding the build out of new generation.

“Our new 12-year energy efficiency framework puts families and businesses at the forefront of Ontario’s energy strategy,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “By expanding access to cost-saving programs, we’re helping small businesses thrive, supporting families in lowering energy bills, and reducing demand on the grid to secure our energy future. This investment reflects our government’s determination to build a resilient energy system that powers economic growth and strengthens communities across the province.”

Expanding energy efficiency programs to save families money is just one way the government is meeting the province’s rapidly growing demand for electricity. Ontario’s Affordable Energy Future: The Pressing Case for More Power outlines the challenges facing the province as demand for electricity continues to rapidly grow, as well as the government’s all-of-the-above approach to meet this demand, including:

• Energy Planning – Developing the province’s first integrated energy plan, including all energy resources, including electricity, natural gas, and other fuels to ensure the province’s energy needs are met in a coordinated and long-term manner.
• Nuclear Energy – Advancing clean, reliable, and affordable nuclear power through pre-development work at Bruce Power on the province’s first large-scale nuclear build in 30 years, four small modular reactors at Darlington and supporting OPG’s plan for refurbishing the Pickering Nuclear Generation Station.
• New Transmission Infrastructure – Designating and prioritizing transmission lines in Southwestern, Northeastern and Eastern Ontario that will power job creators, including EV and EV battery manufacturing and clean steel production.
• Additional Competitive Procurements – Launching the largest competitive procurement of clean energy resources in the province’s history in addition to successfully re-contracting existing capacity resources at about a 30 per cent discount.

Quick Facts

Quotes

“This bold new Energy Efficiency Framework builds on Ontario’s leadership as an energy-efficiency provider in North America, solidifying our collective commitment to a reliable, affordable, and sustainable energy future. Energy efficiency is a proven low-cost and reliable resource that offers customer choice and delivers significant savings. The IESO, through its Save on Energy brand, looks forward to expanding opportunities to more residents and businesses with this framework.”

– Lesley Gallinger
CEO and President, Independent Electricity System Operator (IESO)

“Many small businesses have just been through a challenging year, so they will welcome today’s announcement with new and continued financial incentives to help them save on energy costs and invest in their operations. Today’s announcement will also provide job opportunities through the new Home Renovation Savings Program, delivering a boost to small contractors, electricians and HVAC installers offering energy efficiency renovations and improvements to homeowners.”

– Ryan Mallough
VP, Legislative Affairs, Canadian Federation of Independent Business (CFIB)

“Ontario’s new $10.9 billion energy efficiency investment represents a pivotal step forward for our region’s productivity and climate economy. Reducing peak demand and cutting electricity system costs will help us maximize the efficient use of Ontario’s power grid. It will have the added benefit of bolstering our burgeoning cleantech sector by creating the conditions for our innovative industries to scale and drive a more competitive, sustainable future. It’s what we need.”

– Giles Gherson
President and CEO, Toronto Region Board of Trade

“This investment of $10.9 billion over 12 years in energy efficiency programs highlights the ongoing commitment of Ontario’s Minister of Energy and Electrification, Stephen Lecce, to help Ontarians save on energy. OHBA welcomes this announcement, in particular, the new Home Renovation Savings Program, which will help homeowners save money on energy efficiency projects and boost activity in the professional renovation sector, which is responsible for over 350,000 jobs in Ontario.”

– Scott Andison
CEO, Ontario Home Builders’ Association (OHBA)

“The Canadian Renewable Energy Association (CanREA) applauds the Ontario government’s forward-looking approach to meeting the province’s growing energy needs. Supporting distributed energy resources (DERs) such as solar power and energy storage unlocks significant potential for homeowners, businesses, First Nations and communities across the province, while securing a resilient and affordable energy future for generations to come. By putting customers at the forefront, these new and enhanced programs create meaningful opportunities for Ontarians to take control of their energy use and reduce costs.”

– Vittoria Bellissimo
President and CEO, Canadian Renewable Energy Association (CanREA)

“The Ontario Government’s Home Renovation Savings Program announced today is now part of a broad suite of energy initiatives that will ultimately provide for continued affordable, sustainable and reliable energy for Ontario homes and businesses. Secure and predictable energy is the foundation upon which Ontario’s economic prosperity is supported now, and in the years to come.”

– Richard Lyall
President, Residential Construction Council of Ontario

“At the Ontario Chamber of Commerce, we believe that good energy policy must focus on affordability, reliability, and sustainability. We welcome the Ontario government’s expansion and creation of energy efficiency initiatives as a timely and critical step toward addressing our growing electricity demand. Investing in energy efficiency creates a win-win-win: it lowers consumer and business costs, reduces demand on our grid, and involves Ontarians in meeting our climate goals.”

– Daniel Tisch
President and CEO, Ontario Chamber of Commerce

“Energy affordability and lowering emissions are among the most pressing issues Ontario faces today, and conservation and demand-side management programs are among the most cost-effective solutions to address both. We are pleased to collaborate with the IESO and the Government of Ontario to deliver the Home Renovation Savings Program – This program puts customers first, removes barriers to access, and makes it easier for Ontarians reduce their household energy use. Enbridge Gas knows that our customers want to take meaningful action to reduce their greenhouse gas emissions. This is evident in the tremendous success of the conservation programs we’ve proudly delivered over the years.”

– Steven Greenley
Senior Vice President, Commercial Services – Gas Distributions & Storage, Enbridge Inc

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