The Ford government is set to offer rebates for home renovations and even new appliances as it ramps up efforts to improve energy efficiency in Ontario homes.
On Tuesday, Energy and Electrification Minister Stephen Lecce unveiled a new rebate program as part of the government’s 12-year, $11-billion energy efficiency plan.
The plan includes rebates of up to 30 per cent for home renovation projects like replacing windows or doors or installing smart thermostats. Later in the year, the program is set to expand to energy-efficient appliances like refrigerators or freezers.
“As the demand for electricity continues to rise, we’re giving families and small businesses more ways to save money,” Lecce said in a statement.
“Ontario’s new Home Renovation Savings Program will put more money back in your pockets, covering up to 30 per cent of the costs of new windows, doors, insulation, heat pumps, rooftop solar panels, and battery storage.”
According to the government, the new program will offer incentives, including:
- $600 for a home energy assessment
- $100 per new window and door
- up to $8,900 for insulation
- up to $250 for air sealing
- $75 for a smart thermostat
- $500 for a heat pump water heater
- up to $7,500 for a cold climate air source heat pump
- up to $12,000 for a ground source heat pump
- up to $5,000 for rooftop solar panels
- up to $5,000 for battery storage systems
Rebates are generally set to be 30 per cent of the cost of new upgrades, the government said, and will be paid out between 30 and 60 days after an application is approved.
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The rebate levels for energy-efficient fridges and freezers, which will be eligible later in the year, have not yet been determined.
The home renovation program is similar to one the Progressive Conservative government cancelled in 2018, though Lecce said it is different because more homeowners will qualify and the new program has a longer commitment.
The government said that under the new energy efficiency plan involving the two new and 12 continuing programs, spending would be about $900 million per year, compared with an annual budget of $342 million on average over the past 13 years.
The new program, Lecce said, is open to all households in Ontario, regardless of their source of energy.
Lecce said the province estimates that for every dollar it spends on the rebate program, it will get a $2 return.
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Ontario Green Party Leader Mike Schreiner pointed out the government cancelled a similar program when Ford first took power.
“I’m glad that, six years after cancelling energy efficiency programs, the Ford government’s answering the Green Party’s call to actually have those programs in place to help people and small businesses save money by saving energy,” he said.
“But we’ve lost six years of financial, economic and environmental benefits that could have come from these programs if the Ford government hadn’t cancelled them in the first place.”
The Ford government is placing an increasing emphasis on energy conservation programs, as estimates suggest demand looks likely to outstrip supply over the next decade.
Last year, the Independent Electricity System Operator said demand is increasing faster than previously anticipated, and is set to grow by 75 per cent leading up to 2050.
Along with the conservation plan, the province is considering new power generating stations, potentially leaning into new nuclear sites, to deal with increasing demands.
Lecce has tasked Ontario Power Generation with starting discussions with the municipalities and First Nations communities about putting various forms of electricity generation on land in Nanticoke in Haldimand County, Lambton in St. Clair and Wesleyville in Port Hope.
Officials have said this could mean any form of generation, including nuclear or gas plants.
On Tuesday, Lecce also announced the province is expanding its peak perks program to small businesses, giving them $75 in pre-paid credit for connecting a smart thermostat to a central air conditioning system or heat pump. Each year in the program comes with an extra $20, the government said.
The changes come as part of the Affordable Energy Act, which the Ford government fast-tracked through the Ontario legislature at the end of 2024. It became law on Dec. 4.
The Home Renovation Savings Program will launch on Jan. 28, the province said. It is set to expand to appliances later in the year.
–with files from The Canadian Press
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