Ontario’s Save on Energy Retrofit Program: Get Up to 50% Back on Energy-Efficiency Upgrades

Improving energy efficiency is one of the smartest investments a business can make. Not only does it reduce electricity costs, but it also helps lower greenhouse gas emissions and improve long-term operational efficiency.

In Ontario, businesses have access to a powerful incentive designed to support these improvements: the Save on Energy Retrofit Program, supported by the Independent Electricity System Operator (IESO) and the Government of Ontario.

Through this program, businesses can receive up to 50% of eligible project costs for energy-efficiency upgrades.

Let’s take a closer look at how it works.

What Is the Save on Energy Retrofit Program?

The Save on Energy Retrofit Program helps businesses reduce electricity consumption by offering financial incentives for energy-efficient upgrades and retrofits.

Projects that demonstrate measurable and sustainable reductions in electricity use may qualify for funding. These upgrades not only reduce operating costs but also help organizations stay competitive while supporting environmental goals.

Two Main Incentive Streams

The program offers two different pathways depending on the size and complexity of the project.

1. Prescriptive Stream

The Prescriptive Stream supports common energy-efficiency upgrades with predefined incentives.

Businesses can receive up to 50% of eligible project costs for upgrades such as:

Solar photovoltaic systems
Computer room air conditioners
HVAC controls and system upgrades
Network lighting controls
Pumps and motors
Variable frequency drives
Manufacturing equipment upgrades

These projects follow standardized savings calculations, which helps speed up the application and approval process.

2. Custom Stream

The Custom Stream is designed for larger or more complex projects that require tailored energy savings calculations.

Instead of fixed incentives, funding is based on actual energy performance improvements.

Current incentives include:

Up to $1,800 per kW of peak demand savings
Up to $0.20 per kWh of electricity savings

This stream allows businesses to pursue more advanced energy-efficiency strategies based on their specific operations.

Who Is Eligible?

The Retrofit Program is available to a wide range of building owners and operators across Ontario, including:

Commercial buildings
Industrial facilities
Municipal buildings
Universities, colleges, schools, and hospitals
Multi-residential buildings
Agricultural facilities

If your organization leases its building, participation may still be possible with owner authorization.

Examples of Eligible Energy-Efficiency Projects

Many types of projects can qualify for incentives, including:

Solar photovoltaic installations
HVAC redesign or upgrades
Chiller replacements
Variable-speed drive installations
Lighting control systems
Industrial energy management systems
Custom equipment retrofits

The key requirement is that the project must produce verifiable electricity savings.

Why Businesses Are Taking Advantage of Retrofit Incentives

Companies across Ontario are adopting energy-efficient technologies because they help:

Lower electricity bills
Improve operational efficiency
Reduce environmental impact
Future-proof facilities against rising energy costs
Increase competitiveness in their industry

With incentives covering up to half of project costs, many upgrades become financially viable much faster.

Start Your Energy-Efficiency Journey

Energy retrofits can seem complex, but the right guidance can make the process straightforward—from identifying eligible upgrades to navigating incentive applications.