Ontario has several energy efficiency programs, and in 2025, they have announced some new and expanded energy efficiency programs that we will outline below. Consumers in Ontario can take advantage of the province’s programs that are available as rebates and more to save money overall and ease their wallets each month.
There are also larger purchase incentives, such as ones for purchasing boilers or other applicable hardware for large industrial sites or the grants and rebates to make homes and businesses more cost-effective while also being environmentally friendly. Ontario is the second largest province after Quebec, and with that, there are many energy efficiency programs available from homeowners to small businesses, upwards to large industrial companies. Creating and supporting businesses while also creating a more energy-efficient place to live is ideal.
Below are the new and continuing programs available in Ontario.
Programs for residential consumers:
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.
It’s also been stated that later in 2025, the program will expand to include rebates for energy-efficient appliances, including refrigerators and freezers. These are to be determined and will be updated accordingly when the information is available.
Typically speaking, rebates could offset up to 30% of the cost of new upgrades, and rebates will be paid within 30 to 60 days of an approved application.
Continuing and expanded programs:
Peak perks are a financial incentive for residential customers who wish to or are already willing to conserve energy and reduce air conditioning at peak times, and also have an eligible smart thermostat connected to a central air conditioning system or heat pump unit. Participants will receive $75 for enrolling as well as $20 for each year they remain enrolled in the program. Peak perks will also 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.
The Energy Affordability Program will provide income-eligible households with free energy-saving upgrades that include new appliances such as refrigerators, air conditioners, cold-climate air-source heat pumps, and also includes lighting and insulation. The Energy Affordability Program is coordinated with other additional natural gas-savings upgrades for Enbridge Gas customers through the Home Winterproofing Program.
Programs for businesses and communities:
Small Business Peak Perks – The successful Peak Perks Program is being expanded to include small businesses this year. 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 each year they remain enrolled in the program.
Continuing and expanded programs:
The Retrofit Program provides support for businesses and institutional customers, including municipalities, hospitals, arenas and schools, etc. to replace equipment such as lighting, HVAC, and manufacturing equipment with more energy-efficient models.
The Strategic Energy Management Program will give 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. Companies can also receive financial incentives for operational electricity savings achieved when these changes are implemented.
Through an expanded Local Initiatives Program, IESO offers enhanced local programming in municipalities and in particular neighbourhoods that are facing transmission constraints, to defer expensive transmission upgrades, and it will also improve local reliability. More funding will also be set aside for local distribution companies to address local issues where local priorities also provide much wider benefits, such as lowering local peak energy needs to reduce the overall need for expensive new poles and wires or transmission station upgrades as well.
The Existing Building Commissioning Program is in place to help companies hire experts to help them recommission their buildings’ operating systems to operate at peak efficiency.
Energy Performance Program is one that provides “pay for performance” incentives for companies that lower their energy use by a minimum of five per cent within two years, as shown by metered electricity use compared to past history on their meters. 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.
Large industrial companies can benefit from the Industrial Energy Efficiency Program, that large industrial energy-efficiency projects can receive up to $5 million in financial incentives to help reduce their demand on the provincial grid as a whole. In exchange for this, each company must deliver a minimum of 2,000 MWh of electricity savings, which is equivalent to 240 homes.
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 businesses themselves.
An Instant Discounts Program is 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.
Also included are continuing First Nations programs, such as:
First Nations 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 Nations 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.
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 those audits, offers free energy-saving measures.
For more information on Ontario energy, rates, incentives, and other energy needs across the country, EnergyRates.ca can help compare and inform on updates relating to energy in Canada. Ontario (and other provinces) with their green energy incentives and programs are here as well, with more information and unbiased blog posts that provide insights into the energy sector.
