Ontario to pay 30% rebate for residential solar and storage additions

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The government said the measures represent part of a CA$10.9 billion, 12-year investment in energy efficiency. Image: Bill Mead via Unsplash

The Ontario Government has introduced rebates for home energy efficiency measures, including rooftop solar modules and battery energy storage systems (BESS).

Under its Home Renovation Savings Program, part of the December 2024 Affordable Energy Act, the state government will offer rebates for up to 30% of the cost of adding solar modules, BESS or other energy efficiency measures – including new windows, doors, insulation and heat pumps – to a house.

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The government said the measures, which include other energy efficiency programmes for businesses, represent part of a CA$10.9 billion (US$7.5 billion), 12-year investment in energy efficiency, which it called the “largest” in Canadian history.

The Home Renovation Savings Program will launch on 28th January. Later in the year, it will be expanded to include energy efficient home appliances, the government said. It added that the scheme is open to people who use oil or propane to heat their homes, as well as electricity users.

Sam Oosterhoff, associate minister of energy-intensive Industries, said: “By expanding access to cost-saving programs, we’re helping small businesses thrive, supporting families in lowering energy bills, and reducing demand on the grid to secure our energy future.”

The Ontario government’s own estimates predict that its energy efficiency measures will reduce the province’s peak electricity demand by up to 3GW and that the CA$10.9 billion measures will result in CA$23.1 billion in electricity system benefits. The Ontario government’s “vision for Ontario’s energy future” can be found in its white paper, Ontario’s Affordable Energy Future: The Pressing Case for More Power.

Vittoria Bellissimo, president and CEO of the Canadian Renewable Energy Association (CanREA) said: “CanREA applauds the Ontario government’s forward-looking approach to meeting the province’s growing energy needs. Supporting distributed energy resources (DERs) such as solar power and energy storage unlocks significant potential for homeowners, businesses, First Nations and communities across the province, while securing a resilient and affordable energy future for generations to come.”

In August, the state government banned solar deployments on “prime agricultural land” – Rob Flack, minister of agriculture, food, and agribusiness said the decision would “ensure a balance between our energy needs and the needs of our farmers.” At the same time, the government launched its second long-term procurement scheme for energy generation capacity covering both renewable and traditional combustion energy sources.

Alberta’s government announced similar limitations on solar deployments in March.

More broadly, in October the Canadian national government announced a CA$500 million programme to increase the country’s grid resilience and install more renewable energy generation capacity.

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