Ontario is expanding its suite of energy efficiency programs with new rebates for households and increased incentives for industrial, municipal, institutional, and health-care organizations—measures the government says will help lower energy bills, reduce demand on the electricity grid, and support economic competitiveness across the province.
Announced in North York, the latest updates form part of Ontario’s 12-year, $10.9-billion Energy Efficiency Framework, the largest investment in energy-efficiency programming in Canadian history. The initiatives also align with Energy for Generations, Ontario’s first integrated energy plan, designed to support affordability while meeting rising electricity demand.
“With electricity demand rising, keeping more money in people’s pockets has never been more important,” said Stephen Lecce, Minister of Energy and Mines. “By expanding Ontario’s energy savings programs to include energy efficient appliances, families save money and Ontario saves power – the ultimate win-win. After energy costs quadrupled under the former government, our number one priority is affordability for families, which is why we expanded this savings program, permanently cut the gas tax, and led the charge to scrap the carbon tax.”
Electricity demand in Ontario is expected to increase sharply over the next 25 years, driven by population growth, industrial activity, and widespread electrification. The province argues that targeted efficiency improvements are essential to managing future strain on the grid. Many households and workplaces continue to rely on older, less efficient appliances and processes, which can increase consumption and operational costs.
Beginning this fall, the expanded Home Renovation Savings Program (HRSP) will offer households rebates of up to $200 for qualifying energy-efficient appliances such as refrigerators, freezers, and laundry machines. Rebates will be issued within 60 days of approval, and appliances may be purchased either in-store or online from any retailer. All Ontario homes connected to the electricity grid—including condos and apartments—will be eligible as long as the purchase replaces an existing, less efficient electric appliance.
The HRSP will also introduce a new rebate for attic insulation that does not require a home energy assessment, a change intended to speed up applications and reduce barriers for homeowners. The assessment-based stream for insulation upgrades will continue to be available for those who prefer it.
The first phase of the province’s expanded energy savings programs launched on January 7, 2025, offering rebates for insulation, smart thermostats, and rooftop solar. As of June 2025, the program had achieved up to 685 gigawatt-hours in energy savings and reduced peak demand by 226 megawatts—the equivalent of removing over 220,000 homes from the grid.
Larger organizations will also see increased support through the Save on Energy XLerate Program, which is designed to encourage capital investments in energy-efficient technologies. Incentives will rise from $5 million to $15 million per project, with additional features including feasibility study funding that covers 50 per cent of costs up to $100,000, a streamlined application process, and broader eligibility criteria to accommodate longer project timelines.
“Ontario is taking concrete steps to ensure that our economy is powered by strong, self-reliant, and competitive energy sources – particularly in the face of the unprecedented energy demands that our growing province is experiencing,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “This integrated energy plan, the first of its kind, is a generational step toward an energy future that will grow our economy and support Ontario’s industries, while remaining affordable, reliable, and secure.”
The province projects that the Energy Efficiency Framework will reduce peak electricity demand by 3,000 megawatts by 2036—the equivalent usage of three million homes. Officials say these savings will reduce operating costs, defer the need for new power generation, and strengthen the province’s competitiveness within the G7 economy.
Industry and sector leaders also voiced support for the expanded programs. “As our province grows, we need to ensure Ontario’s electricity system remains reliable and affordable,” said Michelle Cooper, MPP for Eglinton-Lawrence. Corey Diamond, Executive Director of Efficiency Canada, added that “When we treat saved energy like a resource, it pays people instead of power plants — and that’s a smart approach for affordability and climate progress.”
Executives from the Independent Electricity System Operator (IESO), Ontario Chamber of Commerce, Ontario Energy Association, Enbridge Gas, Ontario Home Builders’ Association, Canadian Manufacturers & Exporters (CME), and RESCON echoed similar sentiments, emphasizing the programs’ role in cost reduction, competitiveness, climate progress, and long-term grid stability.
Together, the expansions mark a significant step in Ontario’s broader push to balance economic growth with energy affordability and sustainability, reinforcing efficiency as a cornerstone of the province’s long-term energy strategy.