In January 2025, Ontario launched the New Energy Efficiency Programs – its largest investment to help companies and residents achieve energy savings, featuring substantial rebates. According to the government, the initiative, running from 2025 to 2036, was created considering the local electricity demand, which continues to rise, and aims to more than double the province’s annual energy efficiency spending to $900 million.
As the goal is boosting the energy market, the province strives to reach numbers such as 18,000 GWh of electricity savings by 2036, 3,000 MW of peak demand savings – equivalent to 70% of the summer peak electricity demand for the entire City of Toronto, and a $10.9 billion budget, 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.
For Homeowners
Home Renovation Savings Program
The new program launched in January 2025 and called “Home Renovation Savings Program” will cover home energy efficiency upgrades, including new windows, doors, insulation, air sealing, smart thermostats, and heat pumps, as well as rooftop solar panels and battery storage systems for residents who want to generate and store energy at home. Talking about heating pumps, the Government website informed that the rebates will be:
- $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.
Regarding the eligibility conditions when we talk about homeowners looking for upgrades to a high-efficiency heat pump, is required:
- Single-family homes, semi-detached, townhouses, rowhouses, and mobile homes.
- Have owned the home for at least 6 months
- Have Toronto area postal codes.
- One heat pump rebate and one smart thermostat rebate per home.
- Heat pump installation completed by December 31, 2025.
- Haven’t received rebates for the same upgrades through other programs
| Eligible Heat Pump Rebates | Amount |
| Mini-Split Cold Climate Air Source Heat Pump | $2,500 |
| Multi-Split Cold Climate Air Source Heat Pump (2 heads) | $2,500 |
| Multi-Split Cold Climate Air Source Heat Pump (3–4 heads) | $5,000 |
| Central Cold Climate Air Source Heat Pump | $5,000 |
| Ground Source Heat Pump | $10,000 |
Energy Affordability Program
Traditionally, the Affordability Program has provided free energy-efficiency upgrades to more than 47,000 Ontario households since 2018 and was designed to help families manage their energy costs through energy-efficient improvements on insulation, smart thermostats, energy-efficient refrigerators, and air conditioners.
Talking about heat pumps, the program is now offering free cold-climate air source heat pumps to income-eligible households with electric heating. If you qualify, there’s no cost. By the way, with a heat pump, less energy is used to heat and cool your home, which results in lower utility bills in the long term.
The upgrades and types of support available are adapted according to factors including home heating system, location, and an assessment of energy needs. Under the increased income eligibility threshold, a four-person household with a before-tax income of $84,872, or a couple with a before-tax income of $60,014, is now eligible, which represents an increase of 16% compared to the previous income threshold.
For Small Businesses and Homes
Peak Perks Program
Launched in 2023, the Peak Perks program is being expanded to include small businesses that are willing to conserve energy and reduce air conditioning at peak times. All the participants, according to the Peak Perks website, save by participating in brief, time-limited thermostat adjustments during periods of peak electricity demand that can occur on the hottest summer days.
If qualified, homeowners and businesses receive $75 for enrolling, as well as $20 for each year they remain enrolled in the program. and to be eligible is needed:
- Own a smart thermostat connected to an air conditioning system or a heat pump.
- Have an eligible Wi-Fi-enabled smart thermostat installed in your home or business.
- Not participating in another demand response program in Ontario, where your thermostat is automatically adjusted to help maintain the reliability of the electricity grid.
If you would like to read more about energy-related programs in Ontario, click here.
