The Ontario government has announced what the province calls the largest energy efficiency investment in Canadian history, allocating $10.9 billion over twelve years to help families and businesses save money while reducing energy consumption.
A media release said a key part of the initiative is the new Home Renovation Savings Program, launching January 28, 2025. The program offers homeowners rebates of up to 30 per cent for energy-efficient upgrades such as new windows, doors, insulation, smart thermostats, and rooftop solar panels. The program will expand later in 2025 to include rebates for energy-efficient appliances like refrigerators and freezers.
“These new Energy Efficiency Programs are great news and will help lower energy bills and support Ontario’s energy grid,” said Bruce-Grey-Owen Sound MPP Rick Byers. “Our government continues to make affordability a priority for Ontario residents.
By 2050, electricity demand is expected to rise sharply due to population growth, electrification, and advanced technologies.
“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,” said Stephen Lecce, Minister of Energy and Electrification. “Ontario’s new Home Renovation Savings Program will benefit Ontarians, covering up to 30 per cent of the costs on energy efficiency products. We will expand this program again in 2025, including rebates for energy efficient appliances including refrigerators and freezers, to further reduce energy bills and demand on the grid.”
The Affordable Energy Act, effective December 2024, extends the program’s reach beyond households using electricity for heating, now including those relying on propane and oil. Small businesses, including convenience stores and restaurants, will also benefit through the expanded Peak Perks Program, which offers financial incentives for adopting smart thermostat technology.
The province is also enhancing twelve existing Save on Energy programs, targeting sectors like agriculture, low-income households, municipalities, and First Nations communities. Popular programs, such as the Retrofit Program, will continue to receive funding to help businesses upgrade energy systems.
By 2036, these programs are expected to reduce Ontario’s peak electricity demand by 3,000 megawatts, equivalent to removing three million homes from the grid. The province predicts this reduction will save ratepayers an estimated $12.2 billion by avoiding the construction of new energy generation facilities.
The province's initiative, called Ontario’s Affordable Energy Future: The Pressing Case for More Power, will also work to advance nuclear energy projects, including a new large-scale build at Bruce Power and small modular reactors at Darlington. The plan also includes developing integrated energy planning to address rising electricity demand, forecasted to increase by 75 per cent by 2050. And the initiative calls for construction of new transmission lines in key regions to support EV battery manufacturing and clean steel production.