Province promises rebates for energy efficient home renovations

Are home renovations on your to-do list? Well, 2025 might be the year to start.

On Tuesday, the province announced a new program that offers incentives for home renovations. The catch is, they also have to be energy efficient.

The Home Renovation Savings Program, which is set to launch on Jan. 28, offers homeowners a rebate of up to 30 per cent off the cost of energy efficiency renovations and improvements, such as new windows, doors, insulation, air sealing, smart thermostats, heat pumps, rooftop solar panels and battery storage systems.

Stephen Lecce, the province’s Minister of Energy and Electrification, promised the program would offer both upfront and long-term savings for Ontarians.

"A family… looking to keep themselves warm over the winter by upgrading their insulation, their windows and doors, they'd receive a rebate of up to $8,900 for installation, and $100 for every door, for every window that they will replace," he said during Tuesday’s news conference. "Take, for example, a homeowner that invests $15,000 in a new heat pump. They could see a $4,500 rebate up front, while benefiting from an ongoing savings of up to 50 per cent on their heating portion of the electricity bill."

The government stated they would be spending $900 million every year, on average over 12 years, on the new energy efficiency plan, which would include two new and 12 continuing programs.

“For every dollar we're investing, we're getting a $2 return on that investment for an average family,” Lecce said.

Later in 2025, the program is expected to expand to include energy efficient appliances like refrigerators and freezers.

Retailer reaction

Staff at Canadian Appliance Source in Kitchener, Ont. said they were excited to hear about the new program, though it is not clear when appliances will qualify.

Joanne Mailloux, a senior account executive at the store, said most refrigerators are energy efficient anyway so the options are endless.

“People use refrigerators every day. They're a necessity. It's nice to see them put a little bit of money towards that efficiency point.”

Display at Canadian Appliance Source in Kitchener, Ont. on Jan. 7, 2025. (Heather Senoran/CTV News)

At Canadian Appliance Source, refrigerators can run anywhere from $1,500 to $5,000 or more, but that’s before the rebate.

“Nobody wants to buy a fridge when their fridge fails, but it'll make it a little better if there is some sort of incentive to look at something that is more energy efficient,” Mailloux said.

More about the program

Under the new program, rebates must be paid within 60 days after a completed program application is approved.

There is also no limit on the number of energy efficient upgrades a homeowner can make.

The province also said it is expanding the residential Peak Perks program to small businesses, giving them a $75 virtual prepaid credit card for each eligible smart thermostat connected to a central air conditioning system or heat pump unit, and another $20 for each additional year in the program.

- With files from The Canadian Press