The Ontario government is introducing the Home Renovation Savings Program, a $10.9 billion energy efficiency initiative designed to help homeowners and small businesses reduce energy costs and prepare for the province’s growing electricity demands. Launching on January 28, 2025, the program offers significant rebates for energy-efficient home improvements.
The Independent Electricity System Operator (IESO) projects a 75% increase in electricity demand by 2050, driven by population growth, new manufacturing facilities, advanced technologies, and electrification. To meet this challenge, the Ontario government predicts that expanding energy efficiency programs like this will reduce peak electricity demand by 3,000 MW by 2036, the equivalent of removing three million homes from the grid.
Energy Minister Stephen Lecce emphasized the dual benefits of the program, stating:
“This initiative provides immediate financial relief for homeowners and businesses while driving Ontario toward a more sustainable energy future.”
The Home Renovation Savings Program offers rebates of up to 30% for various energy-efficient upgrades. Key rebates 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
- Insulation, Windows, and Doors: A family upgrading their home’s insulation and replacing windows and doors could receive up to $8,900 for insulation and $100 per window or door replaced.
- Heat Pump Installation: A homeowner investing $15,000 in a new heat pump could receive a $4,500 rebate upfront, in addition to long-term savings of up to 50% on heating costs.
Later in 2025, the program will expand to include rebates for energy-efficient appliances such as refrigerators and freezers.
Applications open on January 28, 2025, and rebates will be processed within 30 to 60 days of approval.
In addition, the Peak Perks Program will expand to small businesses, offering:
- $75 virtual prepaid credit card for each eligible smart thermostat connected to a central air system or heat pump.
- $20 annually for continued participation in the program.
Amarjot Sandhu, MPP for Brampton West, praised the program’s potential to drive sustainability and affordability:
“This initiative is a win-win for Ontarians. It reduces energy costs for families and small businesses while supporting our province’s shift to a greener, more energy-efficient future.”
Charmaine Williams, Associate Minister of Women’s Social and Economic Opportunity, emphasized the benefits for families and communities:
“This program will not only help households save money on energy bills but will also contribute to a healthier and more sustainable Ontario for generations to come.”
The Home Renovation Savings Program marks a significant step in Ontario’s journey toward sustainability. With rebates tailored to both individual households and businesses, the initiative promises immediate savings while addressing long-term energy challenges.
For more information, visit the program’s website starting January 28, 2025.