Ontario Government Launches Home Renovation Savings Program
Earlier this week, the Government of Ontario announced the imminent launch of new energy efficiency programs, including the new Home Renovation Savings Program as part of a new $10.9 billion, 12-year investment in energy efficiency and carbon reduction.
The new Home Renovation Savings Program will launch on January 28, 2025, and will offer rebates of up to 30 per cent for home energy efficiency renovations and improvements, including new windows, doors, insulation, air sealing, smart thermostats, and heat pumps, as well as rooftop solar panels and battery storage systems for people who want to generate and store energy at home.
Incentives for HVAC upgrades will include up to $7,500 for a Cold Climate Air Source Heat Pump and up to $12,000 for a Ground Source Heat Pump system, with no requirement for a home energy evaluation. There will also be a $75 incentive for smart thermostats and up to $10,000 for solar panels and battery storage, as well as incentives for heat pump water heaters, air sealing, insulation, windows and doors. Homeowners will also be eligible to receive up to $600 towards the cost of a home energy assessment
The government’s Affordable Energy Act, which came into force on December 4, 2024, ensures the new Home Renovation Savings Program, and other program offerings, will be expanded to homeowners who heat their homes by propane and oil, instead of being restricted to those who heat with electricity, as it was under previous governments. In effect, the program focuses not only on reducing energy consumption but will also achieve significant carbon emission reductions.
The province is also expanding the popular Peak Perks program with a new program specifically targeted to small businesses, including convenience stores and restaurants. Businesses will receive a financial incentive of $75 upon initial enrollment in the program and $20 per year for each eligible smart thermostat connected to a central air conditioning system or heat pump unit.
In addition to the two new energy efficiency programs, the province will continue to support 12 existing Save on Energy programs, including the highly popular Retrofit Program for business, as well as other programs geared to low-income households, businesses, municipalities, institutions, the agricultural sector, industry and on-reserve First Nations communities.
By 2036, it is forecasted that this expansion of energy efficiency programs will reduce the province’s peak demand by 3,000 MW – the equivalent of taking three million homes off the grid. The province’s $10.9 billion investment is also estimated to result in $23.1 billion in electricity system benefits, thereby saving ratepayers $12.2 billion in electricity system costs by avoiding the build out of new generation.
While the program includes some very promising features that are consistent with HRAI’s recommendations over the past several years, some important details remain unclear at the moment. It is not clear, for example, what the program requirements will be for contractor eligibility. HRAI is advocating that the program should be limited to contractors who can demonstrate appropriate technical competencies and provincial certifications. Minister Lecce provided some assurance at the public news conference that the province has a “clear mitigation strategy” that will ensure only qualified contractors do the work that will result from incentives. But details of how that will roll out remain uncertain.
HRAI will maintain contact with the Minister’s office and the IESO to ensure that these considerations are heard, and that the industry is appropriately informed about program details before launch.
Further information:
For more information, contact Martin Luymes at mluymes@hrai.ca or Marla DiCandia at mdicandia@hrai.ca.
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