Ontario Launches New Energy Efficiency Rebates: What to Know
The Ontario government is introducing a groundbreaking energy efficiency program aimed at reducing costs and boosting sustainability for residents. Starting January 28, 2025, the Home Renovation Savings Program will offer energy efficiency rebates of up to 30% on eligible home improvements and appliances.
Energy Efficiency Rebates for Home Renovations and Upgrades
The new program focuses on incentivizing energy-efficient upgrades, including insulation, smart thermostats, heat pumps, solar panels, and battery storage systems. Homeowners could see rebates like:
- Up to $8,900 for insulation
- $100 per door or window replacement
- $7,500 for a cold-climate air source heat pump
- $5,000 for rooftop solar panels or battery systems
These rebates aim to offset upfront costs while delivering long-term energy savings. For example, investing $15,000 in a heat pump could result in a $4,500 rebate and up to 50% savings on heating bills.
Expansion of the Peak Perks Program
In addition to rebates for homeowners, the province is expanding the Peak Perks program to include small businesses. Participants can earn:
- $75 in prepaid credit for connecting a smart thermostat to their system
- $20 annually for continued program participation
This initiative encourages smart energy management, helping both households and businesses manage their energy costs efficiently.
Why Now? Ontario’s Energy Needs Are Growing
Ontario is facing a significant increase in electricity demand, projected to rise by 75% by 2050, according to the Independent Electricity System Operator. In response, the Affordable Energy Act, fast-tracked in late 2024, prioritises energy conservation to reduce strain on the grid and delay the need for costly new power generation.
Energy Minister Stephen Lecce emphasised the importance of these programs, saying, “Energy efficiency programs not only save money but also serve as crucial investments in Ontario’s energy future.”
Rebates Without Red Tape
One of the program’s highlights is its simplified application process, removing the need for energy assessments for major upgrades like heat pumps and solar panels. Rebates will be processed within 30 to 60 days of approval, making it easier for homeowners to access savings quickly.
Criticism and Lessons from the Past
The program mirrors a similar initiative that was cancelled in 2018 by the Progressive Conservative government. Critics, including Green Party Leader Mike Schreiner, argue that Ontario lost six years of potential savings. However, the government claims the new program has a broader scope and longer commitment, benefiting more residents.
Future Plans for Energy Efficiency
The program is part of Ontario’s $11 billion, 12-year energy efficiency strategy, which allocates about $900 million annually to various initiatives. Alongside conservation efforts, the government is exploring new power generation projects, including potential nuclear sites.
How to Access the Program
The Home Renovation Savings Program launches on January 28, 2025. Homeowners can visit the program’s official website to sign up for more details. Appliance rebates, including for energy-efficient fridges and freezers, are expected to roll out later this year.
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