The Ontario government is rolling out the Home Renovation Savings Program, a $10.9 billion energy efficiency initiative aimed at helping homeowners and small businesses reduce energy costs while addressing rising electricity demand. Scheduled to launch on January 28, 2025, this program offers significant rebates for energy-efficient home improvements.
Why the Program Matters
The Independent Electricity System Operator projects a 75% increase in electricity demand by 2050, driven by population growth, new manufacturing facilities, advanced technologies, and the electrification of industries and transportation. The Ontario government predicts that by expanding energy efficiency programs, including this initiative, it will cut peak electricity demand by 3,000 MW by 2036, equivalent to removing three million homes from the grid.
Energy Minister Stephen Lecce emphasized the program’s benefits, saying it provides both immediate rebates and long-term savings for families and businesses while supporting Ontario’s transition to a more sustainable energy future.
What Rebates Are Available?
The Home Renovation Savings Program covers a wide range of energy-efficient upgrades, offering rebates of up to 30%. Specific rebate amounts include:
- $600 for a home energy assessment
- $100 per new window or door
- Up to $8,900 for insulation upgrades
- Up to $250 for air sealing improvements
- $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
Examples of Savings
- Insulation, Windows, and Doors: A family upgrading their home’s insulation, windows, and doors could receive rebates totaling up to $8,900 for insulation and $100 per window or door replaced.
- Heat Pump Installation: Homeowners investing $15,000 in a new heat pump could get a $4,500 rebate upfront while saving up to 50% on heating costs.
The program will also expand later this year to include rebates for energy-efficient appliances like refrigerators and freezers, with details on those incentives forthcoming.
Application Process
Rebates will be processed within 30 to 60 days of an approved application. Homeowners can apply online starting January 28, 2025.
In addition to the Home Renovation Savings Program, Ontario is also expanding its Peak Perks Program to small businesses. This initiative offers a $75 virtual prepaid credit card for each eligible smart thermostat connected to a central air conditioning system or heat pump unit, with $20 for each additional year in the program.