Ontario Construction News staff writer
Ontario has announced $10.9 billion for energy efficiency including the new Home Renovation Savings Program which will provide rebates of up to 30% for energy-efficient home improvements such as new windows, doors, insulation, heat pumps, smart thermostats, and rooftop solar panels.
“This investment of $10.9 billion over 12 years in energy efficiency programs highlights the ongoing commitment of Ontario’s Minister of Energy and Electrification, Stephen Lecce, to help Ontarians save on energy,” said Richard Lyall, President of the Residential Construction Council of Ontario (RESCON). “For contractors and homeowners alike, these programs will help drive the energy-efficient home renovation market, creating new opportunities and boosting productivity across Ontario’s construction sector.”
The program, which launches Jan. 28, is designed to help reduce energy bills and encourage environmentally friendly upgrades. Rebates will be available for a variety of energy-saving measures including insulation upgrades, smart thermostats, heat pumps, and even rooftop solar panels. The program will later expand to cover energy-efficient appliances like refrigerators and freezers.
The program is part of a larger strategy to tackle the province’s electricity needs, which are expected to rise by 75% by 2050. The Ontario government’s Affordable Energy Act, which came into effect in December 2024, broadens access to these energy efficiency programs, now including homeowners who heat their homes with propane or oil—previously excluded from such programs.
Beyond residential support, Ontario is also expanding its energy efficiency efforts to small businesses, including convenience stores and restaurants, with the Peak Perks program. These businesses can receive incentives to install smart thermostats that regulate energy use, helping to reduce their operating costs.
“This is a win-win for the construction industry,” said Scott Andison, CEO of the Ontario Home Builders’ Association (OHBA). “Not only will the Home Renovation Savings Program help homeowners save on energy-efficient projects, but it will also boost activity in the professional renovation sector, which employs over 350,000 people in Ontario.”
The increased demand for energy-efficient retrofits will undoubtedly lead to more work for contractors, electricians, and HVAC specialists.
“Small businesses have just been through a challenging year, so they will welcome the financial incentives offered to help them save on energy costs and invest in their operations,” said As Ryan Mallough, VP of Legislative Affairs at the Canadian Federation of Independent Business (CFIB).
By reducing the province’s peak energy demand by 3,000 MW by 2036—equivalent to removing 3 million homes from the grid—the initiatives aim to avoid costly infrastructure upgrades and save $12.2 billion in electricity system costs.
In addition to residential rebates, the Ontario government is also continuing its popular Save on Energy programs.
For more information on the Home Renovation Savings Program and other energy efficiency initiatives, visit Save on Energy or contact your local energy provider.