Home Renovation Rebates and Peak Perks: Ontario Announces New and Expanded Energy Efficiency Programs

On January 7, 2025, the Government of Ontario unveiled new energy efficiency programs as part of a $10.9 billion, 12-year investment in energy efficiency.¹  Minister of Energy and Electrification Stephen Lecce announced both the Ontario Home Renovation Savings Program (the “Renovation Program”) and an expansion of the existing Peak Perks program. Deemed by Minister Lecce as the “largest energy efficiency program in Canadian history,” the new and expanded programs aim to give families and small businesses more ways to save money as the demand for electricity continues to rise.² 

The Renovation Program is set to launch on January 28, 2025. Later in 2025, the Renovation Program will expand to include rebates for energy-efficient appliances such as refrigerators and freezers.³ 

The Ontario Home Renovation Savings Program

What Is Covered?

The Renovation Program offers rebates of up to 30% for home energy efficiency improvements and renovations.⁴ These include new insulation, doors, windows, air sealing, smart thermostats, heat pumps, as well as rooftop solar panels and battery storage for those who generate and store electricity at home.⁵  

Homeowners can opt for a home energy assessment and “bundle” their savings, or they can choose to proceed with a single upgrade. The Home Renovation Savings Program | Save on Energy website outlines the savings as follows:

Who Can Participate?

The Renovation Program will be available to all homeowners, regardless of how their homes are heated. Unlike past programs, the Renovation Program will not be restricted to those who heat their homes with electricity.⁷ Homeowners who heat their homes with propane or oil are also eligible.⁸ 

Interested homeowners can sign up for the Renovation Program in advance through the Save on Energy website.

Expansion of Peak Perks Program

Minister Lecce also announced an expansion of the Peak Perks program, including an expansion specifically targeted to small businesses. The program currently provides a financial incentive for residential customers willing to conserve energy, reduce air conditioning at peak times and use an eligible smart thermostat connected to a central air conditioning system or heat pump unit.⁹ 

For homeowners, the Peak Perks expansion will include more ways to automatically reduce energy use, such as shifting EV charging and water heating to periods of low demand.¹⁰ 

For small businesses, the Peak Perks program will provide $75 for each eligible smart thermostat connected to a central air conditioning system or heat pump unit that is enrolled, as well as $20 for each year the business remains in the program.¹¹ 

Ontario’s Growing Energy Demand

With Ontario’s population growth, the electrification of industry, the energy required to charge electric vehicles and the rise of artificial intelligence data centres, the province’s electricity demand is increasing rapidly.¹² The Independent Electricity System Operator estimates that by 2050 electricity demand will increase 75%.¹³  

The Renovation Program and Peak Perks expansion aim to reduce demand on the grid. The Ontario government forecasts that by 2036, these programs, along with existing initiatives, will reduce peak demand by 3,000 megawatts, equivalent to taking three million homes off the grid.¹⁴ The province estimates that this investment will generate $23.1 billion in electricity system benefits, saving ratepayers approximately $12.2 billion in electricity system costs by reducing the need for new generation and transmission infrastructure.¹⁵ 

² Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025. 
³ Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025. 
⁴ Government of Ontario, “Backgrounder: Ontario’s New and Expanded Energy Efficiency Programs,” Ontario Newsroom, January 7, 2025.
⁵ Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025. 
⁶ Government of Ontario, “Backgrounder: Ontario’s New and Expanded Energy Efficiency Programs,” Ontario Newsroom, January 7, 2025.
⁷ Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025. 
⁸ Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025.  
⁹ Government of Ontario, “Backgrounder: Ontario’s New and Expanded Energy Efficiency Programs,” Ontario Newsroom, January 7, 2025.
¹⁰ Government of Ontario, “ Backgrounder: Ontario’s New and Expanded Energy Efficiency Programs,” Ontario Newsroom,  January 7, 2025.
¹¹ Government of Ontario, “Backgrounder: Ontario’s New and Expanded Energy Efficiency Programs,” Ontario Newsroom, January 7, 2025.
¹² Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025. 
¹³ Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025. 
¹⁴ Government of Ontario, “Ontario Launches New Energy Efficiency Programs to Save You Money,” Ontario Newsroom, January 7, 2025.