Background
In a move to address rising electricity demand and help residents save on energy costs, the Ontario government is launching the largest energy efficiency program in Canadian history — a $10.9 billion, 12-year investment. This week, Stephen Lecce, the Minister of Energy and Electrification announced the programs and highlighted their anticipated impact. The Home Renovations Savings Program provides rebates for residents making green energy upgrades to their homes, and the expansion of the Peak Perks program supports similar upgrades for small businesses.
The government hopes that this investment will reduce the province’s peak energy demand by 3,000 MW by 2036 — the equivalent of taking three million homes off the grid. According to the government, this investment will result in $23.1 billion in electricity system benefits and save ratepayers ~$12.2 billion by avoiding the costly construction of new power generation infrastructure.
What’s changing?
The main focus of this new initiative is the Home Renovation Savings Program, which will provide Ontarians with the opportunity to improve their home’s energy efficiency while saving money. Starting January 28, 2025, homeowners will be able to access rebates of up to 30% for a variety of home upgrades. Eligible improvements include new windows and doors, insulation, air sealing, energy-efficient smart thermostats, and heat pumps. Additionally, the program will help fund rooftop solar panels and battery storage systems for those interested in generating and storing their own energy. Later this year, the program will be expanded to cover energy-efficient appliances like refrigerators and freezers.
The new program is more inclusive as a result of the Affordable Energy Act. The Act came into force on December 4, 2024, and ensures that the Home Renovation Savings Program will reach a wider array of residents by expanding eligibility to homeowners who heat their homes with propane or oil.
The government is also helping local businesses go green by expanding the Peak Perks program. Specifically designed for small businesses (including convenience stores and restaurants) this program offers financial incentives to those who adopt energy-efficient technologies. Businesses will receive a $75 incentive upon enrollment, and an additional $20 per year for each eligible smart thermostat connected to a central air conditioning system or heat pump unit.
What is the government saying?
“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 … Ontario’s new Home Renovation Savings Program will put more money back in your pockets.”
Stephen Lecce, Minister of Energy and Electrification
“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.”
Sam Oosterhoff, Associate Minister of Energy-Intensive Industries
What are stakeholders saying?
“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 … 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 of the Independent Electricity System Operator (IESO)
“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, CEO and President of the Ontario Chamber of Commerce
Conclusion
The provincial government’s new investment in energy efficiency underscores their commitment to ensuring Ontarians have access to affordable, reliable energy. With the launch of the Home Renovation Savings Program, expanded support for small businesses through Peak Perks, and continued backing for energy efficiency initiatives, Ontario is aiming to ease pressure on the energy grid while preparing for the expected rise in energy demand.