Ontario has just announced a groundbreaking investment in energy efficiency, setting a new benchmark for sustainability and savings in Canada. The province’s $10.9 billion, 12-year energy efficiency initiative—the largest of its kind in Canadian history—aims to help families and businesses save money while reducing their environmental footprint.
The Home Renovation Savings Program
The flagship of this initiative is the Home Renovation Savings Program, launching on January 28, 2025. This program offers rebates of up to 30% for a variety of home energy efficiency improvements, including:
New windows and doors
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 like refrigerators and freezers. This “one-window” access for upgrades will streamline applications and make the process more accessible for homeowners.
Notably, the program extends eligibility to households using propane or oil for heating—a significant change from previous restrictions that limited rebates to homes heated by electricity.
Empowering Businesses Through Energy Efficiency
In addition to helping homeowners, the province is introducing new energy efficiency incentives for small businesses. Under the expanded Peak Perks Program, businesses such as convenience stores and restaurants can receive:
An initial $75 incentive upon enrolment
$20 annually for each eligible smart thermostat connected to a central air conditioning system or heat pump
This initiative complements the 12 existing Save on Energy programs, which cater to a broad spectrum of sectors, including low-income households, municipalities, agriculture, and First Nations communities.
The Impact: Savings, Sustainability, and Economic Growth
By 2036, these programs are expected to cut Ontario’s peak electricity demand by 3,000 MW—the equivalent of removing three million homes from the grid. The investment is projected to generate $23.1 billion in electricity system benefits, saving ratepayers $12.2 billion by avoiding the need for new power generation infrastructure.
“Ontario’s new $10.9 billion energy efficiency investment represents a pivotal step forward for our region's productivity and climate economy,” said Giles Gherson, President and CEO of the Toronto Region Board of Trade.
Moreover, this initiative will stimulate economic growth by creating opportunities for contractors, electricians, HVAC installers, and others involved in energy efficiency retrofits.
A Sustainable Future
Ontario is not just addressing rising energy demand but also taking a strategic approach to long-term energy sustainability. The government’s all-encompassing energy plan includes investments in nuclear energy, new transmission infrastructure, and competitive procurements for clean energy resources.
This bold vision underscores the province’s commitment to affordability, reliability, and sustainability. As Vittoria Bellissimo, President of the Canadian Renewable Energy Association, aptly stated: “These new and enhanced programs create meaningful opportunities for Ontarians to take control of their energy use and reduce costs.”
Why It Matters
The new energy efficiency programs aren’t just about saving money—they’re about empowering Ontarians to make choices that benefit their wallets and the planet. Whether you’re a homeowner planning a renovation or a small business owner looking to cut energy costs, Ontario’s energy efficiency programs offer a win-win solution
