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Canada’s largest energy efficiency initiative was announced by Ontario, where a $10.9-billion investment will help families and businesses lower costs by retrofitting their homes.
The Ontario government’s new Home Renovation Savings Program will offer rebates of up to 30 per cent for energy efficiency upgrades, including windows, doors, insulation, heat pumps, smart thermostats, rooftop solar panels and battery storage. Money for the retrofits will be rolled out over the next 12 years.
Similar energy-saving programs were cancelled by the Ford government after it was elected in 2018. They have now been resurrected to ensure Ontario has enough energy to meet rising demand, said Stephen Lecce, minister of energy and electrification, in a press conference.
“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,” Lecce said.
“Not only are these programs going to help put more money in your pockets, but they are also a crucial investment in the future of our grid. With greater pressure being placed on the province's grid, energy efficiency programs are an opportunity to mitigate demand without compromising affordability.”
The province’s energy efficiency programs were previously restricted to homes with electric heating and certain regions, offering lower incentives. But starting at the end of this month, the program will be available to all homeowners across the province, regardless of what type of home heating they have. The rebates will be paid within 60 days of completing the program application.
The Independent Electricity System Operator reported last year that demand in Ontario is rising more rapidly than expected, with projections indicating a 75 per cent increase by 2050.
The new investment will shell out $900 million annually in energy efficiency programs, nearly tripling the $342 million average of the past 13 years.
Families could be eligible for rebates of up to $8,900 for insulation upgrades, $12,000 for heat pumps, and $10,000 for solar and battery systems.
Later this year, the program will expand to include rebates for energy-efficient appliances, such as refrigerators and freezers.
The province projects that by 2036, these initiatives will reduce peak electricity demand by 3,000 MW — the equivalent of taking three million homes off the grid. The energy efficiency initiative will also provide $23.1 billion in electricity system benefits, saving ratepayers $12.2 billion by avoiding the need for new energy generation infrastructure.
This also includes savings on electricity bills for individuals who participate in these energy-efficient programs.
As part of the new investment, the ministry is also expanding the Peak Perks program with a new initiative for small businesses, such as convenience stores and restaurants. The program allows participants to earn a $75 enrollment bonus and $20 annually for each smart thermostat connected to their central cooling or heat pump system.
The new program won praise from the Ontario Chamber of Commerce, who said investing in energy efficiency is a “win-win.”
“It lowers consumer and business costs, reduces demand on our grid and involves Ontarians in meeting our climate goals,” Chamber president and CEO Daniel Tisch wrote in a statement.
Clean energy advocates and political opponents are also welcoming the announcement, despite frustration with the timeline. “I’m glad that six years after they cancelled energy efficiency programs, the Ford government is finally listening to Ontario Greens’ call to help people and small businesses save money by saving energy,” said Ontario Greens Leader Mike Schreiner in a statement. “It’s unfortunate that people have had to wait six long years for this government to act because home retrofits like heat pumps, solar panels or even just new windows and doors help Ontarians save money every single day.”
Keith Brooks, programs director at Environmental Defence, told Canada's National Observer he was happy to hear the provincial government is offering rebates for heat pumps and solar panels. Heat pumps are “the lowest cost way to heat a home because they are so efficient,” he said.
Fully electric, cold-climate heat pumps can effectively heat homes even during harsh winters, he said. He urged the government to ensure the program particularly encourages the transition for homes using propane, oil and gas, as that’s where the greatest climate and cost benefits lie.
Brooks also praised the inclusion of rooftop solar in the program, describing it as “worthy of government support.” However, he pointed out a missed opportunity to maximize its impact by reinstating net-metering, a policy where homeowners are compensated for excess energy their solar systems produce. “We need more distributed energy in Ontario, and rooftop solar should be a key part of the mix,” he said.
Brooks said he would have been even happier if the announcement had indicated the province intends to fully transition to clean energy. “It’s unclear whether this announcement is about ‘transitioning’ at all — but it should be,” he said. “Yes, efficiency is critical and needs more support — but transitioning away from fossil fuels to clean renewable energy is also critical.”
Comments
The timing of this is another election bribe by the Ford government, but still better than nothing at all. Especially coming from a government who has done little around climate change to date.
Some may stick their tongue in their cheek and call this a new common sense revolution. In reality, it should be a common sense standard practice.
2025 + 12 = 2037. @ < $billion per year. I'll bet it's not front-end loaded either ...
Talk about election gimmicks - it's way too little, way too late!