Ontario launching rebates for energy efficient home renovations and upgrades

Ontario is introducing two new energy efficiency programs, including one offering rebates for certain home improvements.

The Home Renovation Savings Program, launching Jan. 28, will rebate homeowners up to 30 per cent of the cost of energy efficiency renovations and improvements, such as new windows, doors, insulation, air sealing, smart thermostats, heat pumps, and rooftop solar panels and battery storage systems.

The province is also expanding the residential Peak Perks program to small businesses, giving them a $75 virtual prepaid credit card for each eligible smart thermostat connected to a central air conditioning system or heat pump unit, and another $20 for each additional year in the program.

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Energy Minister Stephen Lecce said the home renovation program will mean both upfront and long-term savings for Ontarians.

"A family ... looking to keep themselves warm over the winter by upgrading their insulation, their windows and doors, they'd receive a rebate of up to $8,900 for insulation, and $100 for every door, for every window that they will replace," he said at a news conference.

"Take for example a homeowner that invests $15,000 in a new heat pump. They could see a $4,500 rebate up front, while benefiting from an ongoing savings of up to 50 per cent on their heating portion of the electricity bill."

The home renovation program is similar to one the Progressive Conservative government cancelled in 2018, though Lecce says it is different because more homeowners will qualify and the new program has a longer commitment.

The government says that under the new energy efficiency plan involving the two new and 12 continuing programs, spending will be about $900 million per year on average over 12 years, compared to an annual budget of $342 million on average over the past 13 years.

The new home renovation program and the new Peak Perks for small business program will cost about $60 million and $18 million per year, respectively, for the first few years, the government said.

In response to projections from the Independent Electricity System Operator showing electricity demand sharply rising over the next few decades, the province is looking to build new power generation, but Lecce also touted an electricity sector maxim that the cheapest source of generation is conservation — generation that doesn't need to get built at all.

"Not only are these programs going to help put more money in your pockets, it is also a crucial investment in the future of our grid," he said.

"With greater pressure being placed on the province's grid, energy efficiency programs are an opportunity to mitigate demand without compromising affordability."

Green Party Leader Mike Schreiner said energy efficiency programs like the ones announced Tuesday are great, and they would have been even better if they hadn't been cancelled six years ago.

"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," Schreiner wrote in a statement.

Clean Energy Canada said the new home renovation program is a "monumental step in the right direction."

"Rebates ... can substantially reduce their upfront price for households, making cost-saving technology more affordable and accessible than ever," clean economy program manager Ollie Sheldrick-Moyle wrote in a statement.

"We also applaud the fact that a number of major upgrades listed, including cold-climate heat pumps, can receive a rebate without homeowners having to undertake an energy assessment, simplifying a process that has seen too much red tape elsewhere, saving Ontarians both time and money." 

This report by The Canadian Press was first published Jan. 7, 2025.