Quick Blog Overview: Ontario’s New Energy Efficiency Programs
Home Renovation Savings Program
- Launching January 28, 2025.
- Offers rebates up to 30% for home energy upgrades like new windows, doors, insulation, smart thermostats, heat pumps, rooftop solar panels, and battery storage.
- Expanding later in 2025 to include energy-efficient appliances like refrigerators and freezers.
- Available to homes heated by propane and oil, not just electricity.
Peak Perks Program for Small Businesses
- Targets small businesses (e.g., convenience stores, restaurants).
- Provides $75 upon enrollment and $20 annually for each eligible smart thermostat connected to air conditioning or heat pumps.
Key Benefits
- Reduces Ontario’s energy demand by 3,000 MW by 2036 (equivalent to taking 3 million homes off the grid).
- Estimated to save $12.2 billion in electricity system costs.
- Supports families, small businesses, and the environment with cost-saving and sustainability measures.
How to Get Involved
- Homeowners can sign up now for rebates starting January 28, 2025.
- Peak Perks and other Save on Energy programs are available immediately.
- Link to Ontario.ca's Ontario’s New and Expanded Energy Efficiency Programs Webpage.
This initiative is part of Ontario’s largest-ever energy efficiency investment, helping residents save money while contributing to a sustainable future.
Ontario’s New Energy Efficiency Programs
On January 7, 2025, the Ontario government announced the launch of ground breaking energy efficiency programs designed to help homeowners and businesses save money while reducing their carbon footprint. With a historic $10.9 billion, 12-year investment, this initiative represents the largest energy efficiency program in Canadian history.
Introducing the Home Renovation Savings Program
At the heart of this initiative is the Home Renovation Savings Program, set to launch on January 28, 2025. This program offers rebates covering up to 30% of the costs for a variety of energy-saving home renovations, including:
- New windows and doors
- Improved insulation and air sealing
- Smart thermostats
- Heat pumps
- Rooftop solar panels and battery storage systems
Later in 2025, the program will expand to include rebates for energy-efficient appliances such as refrigerators and freezers.
For the first time, homeowners who heat their homes with propane and oil will also qualify for these rebates, thanks to the Affordable Energy Act enacted in December 2024.
Peak Perks Program for Small Businesses
Small businesses can also benefit from the expanded Peak Perks program, which now includes convenience stores and restaurants. Participants will receive a $75 financial incentive upon enrollment and an additional $20 annually per eligible smart thermostat connected to air conditioning or heat pump systems.
Energy Savings Across Ontario
These programs are expected to yield significant benefits:
- By 2036, Ontario's energy demand will be reduced by 3,000 MW, equivalent to taking three million homes off the grid.
- The investment will generate $23.1 billion in electricity system benefits, saving ratepayers $12.2 billion by avoiding the need to build new energy generation infrastructure.
A Broader Approach to Energy Sustainability
Ontario’s energy strategy doesn’t stop at these efficiency programs. The government is taking an “all-of-the-above” approach to address the province’s rapidly growing energy needs:
- Integrated Energy Planning – Developing a long-term plan for all energy resources, including electricity, natural gas, and other fuels.
- Nuclear Energy Advancements – Investing in large-scale nuclear builds, small modular reactors, and refurbishment projects.
- New Transmission Infrastructure – Prioritizing transmission lines in key regions to power industries like EV manufacturing.
- Clean Energy Procurement – Launching the largest competitive procurement of clean energy resources in Ontario’s history.
How to Get Started
Homeowners can sign up in advance for the Home Renovation Savings Program starting today. The program provides a seamless process for accessing rebates, combining offerings from Save on Energy and Enbridge Gas conservation programs.
For small businesses, enrollment in the Peak Perks program is available now, offering immediate financial incentives.
Why It Matters
This landmark investment empowers Ontario residents to make energy-efficient choices that save money and reduce environmental impact. Whether you’re upgrading your home or optimizing your business operations, these programs pave the way for a more sustainable and affordable energy future.
For more details on these programs and how to participate, visit Ontario’s Save on Energy website or contact your local energy provider.
By making energy efficiency a top priority, Ontario is not only addressing the challenges of increasing energy demand but also ensuring a greener, more sustainable future for generations to come.
Quotes on Ontario’s New Energy Efficiency Programs
"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
Pros and Cons of Ontario's New Energy Efficiency Programs
Pros
- Financial Savings
- Up to 30% rebates reduce upfront costs for homeowners and businesses making energy-efficient upgrades.
- Small businesses get cash incentives through the Peak Perks program.
- Environmental Benefits
- Encourages sustainable practices like installing heat pumps and solar panels.
- Reduces energy demand by 3,000 MW by 2036, helping combat climate change.
- Accessibility
- Rebates extended to homes heated with propane and oil, making the program inclusive.
- A single-window system simplifies applying for rebates.
- Long-Term Energy Savings
- Upgraded homes and businesses will see lower energy bills over time.
- Reduced reliance on the grid decreases overall electricity system costs, benefiting everyone.
- Economic Growth
- Supports local contractors, manufacturers, and green technology industries.
- Helps businesses thrive with lower operational costs and incentives.
- Supports Government Goals
- Aligns with Ontario’s energy strategy to meet growing electricity demands sustainably.
Cons
- High Upfront Costs
- Even with rebates, homeowners and small businesses may struggle to afford renovations without financing.
- Implementation Challenges
- New programs might face delays, technical issues, or low initial awareness.
- Homeowners might find it challenging to navigate eligibility and application requirements.
- Limited Scope Initially
- Appliance rebates won’t be available until later in 2025, delaying potential benefits.
- The program focuses primarily on energy efficiency rather than renewable energy generation for small businesses.
- Potential for Regional Disparities
- Rural and remote areas may have less access to contractors or infrastructure needed for upgrades.
- Reliance on Participation
- Success depends on widespread adoption by homeowners and businesses, which might take time to achieve.
- Uncertain Long-Term Impact
- The program’s effectiveness in significantly reducing energy demand depends on proper execution and ongoing public interest.
Bottom Line
The new energy efficiency programs offer substantial financial and environmental benefits, but their success hinges on accessibility, public awareness, and effective rollout. While the long-term savings are promising, upfront costs and potential challenges might limit immediate participation.