Ontario Launches Peak Perks and Expanded Energy-Efficiency Programs

Our government is helping families save money by saving energy with the new Peak Perks program.

We’re listening to the experts at the IESO and have expanded our energy-efficiency programs in Ontario by $342 million, bringing our total investment to more than$1 billion.

This is part of our plan to ensure a reliable and affordable electricity system that is also one of the cleanest in the world so we can power the province, drive electrification and support strong economic growth.

The new Peak Perks program provides a $75 financial incentive for residential customers that are willing to reduce their energy use during periods of peak demand.

Participants will also receive an additional $20 digital credit card for each extra year they stay enrolled in the program starting in 2024.

Today the government is also launching targeted support for greenhouse growers in Southwest Ontario, in addition to enhancements to existing programs that offer support to businesses, municipalities, hospitals and other institutions to reduce their energy use and lower their energy bill.

What is the Save on Energy Peak Perks program?

Peak Perks rewards residential electricity consumers who own an eligible smart thermostat for reducing their energy use when demand for electricity in Ontario is high during the summer months. This helps reduce stress on the electricity grid and ensure a reliable supply of electricity for you and your community. Participants will receive $75 for enrolling, as well as $20 for each year they stay enrolled in the program starting in 2024.

Participants agree to brief adjustments of between two to four degrees Celsius to their smart thermostats up to 10 times during peak periods of electricity demand from June through September. These adjustments to their thermostat typically last no more than three hours and will not occur on weekends or holidays. Once an event ends, a participant’s thermostat will return to its original temperature settings.

Peak Perks has been designed to ensure participants are always in control. Participants can opt out of thermostat adjustments if needed by using the thermostat app on their mobile device, web browser, or directly adjusting their thermostat.

Who is eligible to participate?

To be eligible to participate, you must:

Be a residential electricity customer in Ontario with central air conditioning controlled by a Wi-Fi-enabled smart thermostat.
Not be participating in any other residential demand response program in Ontario where your thermostat is automatically adjusted to maintain the reliability of the electricity grid.

How can participants sign up for Peak Perks?

The Peak Perks program will be available starting June 5. Interested customers can visit www.SaveOnEnergy.ca/PeakPerks today to sign-up for the program waitlist and receive an email notice with information on how to enroll.

How does the Peak Perks program benefit consumers and the grid?

Peak Perks is part of an expanded set of energy-efficiency programs across Ontario that support the importance of energy efficiency as a key resource in ensuring a cost-effective, sustainable and reliable electricity system in Ontario in a time of growing supply needs.

Participating in Peak Perks is an easy way to be rewarded for managing electricity use and costs at home. Not only will participants be financially rewarded, they are also helping their community and the province by reducing stress on the electricity grid on the hottest days. By taking part in this program, participants are supporting a brighter Ontario by contributing to a reliable, affordable and sustainable grid.

Q1. What is the government introducing?

We are ensuring Ontario continues to have a reliable and affordable electricity system that is also one of the cleanest on the planet so we can keep driving electrification and support strong economic growth. We know demand for electricity is growing and that’s why we’re looking at every option to meet those needs.

In October 2022, the government announced that we’d accepted the recommendations of the Independent Electricity System Operator (IESO) to roll out the new or expanded energy efficiency programs, also known as Conservation and Demand Management (CDM) programs. CDM programs are among the cheapest and fastest ways of meeting system needs. Ontario is now launching the new and expanded programs.

These programs include:

A new Peak Perks program for homes that already have central air conditioning or an electric heat pump and an eligible ecobee, Honeywell Home, Google Nest, Emerson, Alarm.com or Lux smart thermostat . Eligible households can enroll in this program and receive a financial incentive for conserving energy during peak periods. There are roughly 600,000 smart thermostats in Ontario.
Targeted support for greenhouses in Southwest Ontario, including incentives to install LED lighting, advanced lighting controls, or behind-the-meter distributed energy resources (DER), such as combined solar generation and battery storage.
Enhancements to the Save On Energy Retrofit program for business, municipalities, institutional and industrial consumers to include custom energy-efficiency projects like chiller or other HVAC upgrades for a local arena, building automation and air handling systems for a hospital, or other upgrades for a local business.
Enhancements to the Local Initiatives Program to reduce barriers to participation and to add flexibility for incentives for DER solutions.
Targeted support for greenhouses in Southwest Ontario, including incentives for behind-the-meter distributed energy resources (DER), such as combined solar generation and battery storage.

The new and expanded CDM programs are introduced under the 2021-2024 CDM Framework.

Q2. What benefits do the new and enhanced CDM programs offer participants?

Customers who enroll in the Peak Perks program by July 31, 2023, will be sent a $75 promotional prepaid card by email. Participants who enroll after July 31, will still receive a $55 promotional prepaid card. Participants will also receive another $20 promotional prepaid card for each extra year they stay enrolled in the program starting in 2024. The program will become available the week of June 5, but Ontarians can join the waitlist now at saveonenergy.ca/PeakPerks.

Participants give their thermostat manufacturer secure access to their thermostat and will be notified when one of the maximum 10 annual temperature change events occurs directly by their thermostat manufacturer on their mobile app and on their thermostat. Once an event ends, a participant’s thermostat will return to its original temperature setting. . Peak Perks has been designed to ensure participants are always in control and customers can opt-out of an event if desired and will be notified of this option during enrollment and participation.

We’re also announcing the launch of two enhancements to the Save on Energy Retrofit program:

Retrofit for Greenhouses offers businesses in this rapidly growing secor incentives for commonly used lighting, controls and other equipment.
Double incentives for retrofit projects in Niagara Region, Kingston, South Huron Perth, Pembroke and Kenora, excluding lighting projects. These adders are available between April 3 and Oct. 3, 2023, with additional target areas to be announced summer 2023.

Enhancements to the Local Initiatives Program have additionally been added to reduce barriers to participation and to add flexibility for incentives for DER solutions.

Q3. Who is eligible to participate in the new and expanded CDM programs?

For the Peak Perks program, eligible customers must have an ecobee, Honeywell Home, Google Nest, Emerson, Alarm.com or Lux smart thermostat installed in their homes and have central air conditioning or an electric air source heat pump.

Eligibility for the Retrofit program and Local Initiatives Program will be based on project applications and program specific requirements.

For more information on eligibility requirements for the new and expanded energy-efficiency programs, customers can visit the IESO’s Save on Energy websit e.

Q4. Why is the government expanding CDM programs?

The IESO projected, in its 2022 Annual Acquisition Report (AAR), that there will be a need for additional electricity capacity beginning in 2025 and has identified necessary actions to ensure system reliability.

In October 2022, the government announced the accepted recommendations of the IESO to roll out the new and expanded energy efficiency programs, which are among the cheapest and fastest ways of meeting electricity system needs and can help ensure Ontario has a reliable, affordable, and clean electricity system.

The IESO estimates that the new program offers will deliver total provincial peak electricity demand savings of 285 megawatts (MW) and annual energy savings of 1.1 terawatt hours (TWh) by 2025. These programs are expected to have a particular impact in Southwest Ontario, with regional peak demand savings of 225 MW, helping to alleviate electricity system constraints in the region and support economic development.

Savings would persist beyond 2025 with a total net system benefit of over $300 million over the lifetime of the program measures, and would support economic recovery, decarbonization, and energy cost management for homes and businesses.

Q5. How will the CDM enhancements benefit the province?

CDM programs are delivered through the “Save on Energy” brand. Programs and incentives are available for eligible homeowners, small businesses, large businesses and contractors, and Indigenous communities.

CDM programs are among the cheapest and fastest ways of meeting electricity system needs and can help ensure Ontario has a reliable, affordable, and clean electricity system. The new and expanded CDM programs would complement and contribute to a package of resource procurements to meet emerging system needs and help ensure system reliability over future decades.

The new and expanded CDM programs would lead to lower greenhouse gas (GHG) emissions and help to achieve Ontario’s climate targets. The CDM enhancements are expected to result in an estimated three million tonnes of GHG emissions reduction over the life of the energy efficiency measures, working to protect the environment for the future.

Q6. How much will the new and expanded CDM programs cost?

The new programs launched today will also help meet the province’s emerging electricity system needs by providing annual electricity savings equivalent to powering approximately 130,000 homes every year and reduce costs for consumers by over $650 million by 2025.

Q7. Who is responsible for paying for the expanded programs? And will ratepayers’ bills be affected?

Ratepayers who are eligible for the OER will not see a change in their bills. We also know that every dollar invested in CDM results in a system benefit of two dollars. Consumers not receiving the OER will see a slight increase in the near term but will also benefit from lower costs of electricity in the future.

Q8. Is this the most effective way to secure Ontario’s future electricity needs? Why not focus on securing more energy supply?

The IESO has been clear that increased CDM programming is necessary and is the most cost-effective way of addressing system needs to keep our grid reliable.

CDM is a key component of the additional actions the IESO identified in the 2022 AAR to maintain system reliability, rather than an alternative to supply procurements. CDM programs are among the cheapest and fastest ways of meeting electricity system needs and can help ensure Ontario has a reliable, affordable, and clean electricity system. The new and expanded CDM programs would complement and contribute to a package of resource procurements to meet emerging system needs and help ensure system reliability over future decades.

As economic growth and decarbonization efforts contribute to growing electricity demand, CDM programs can be deployed rapidly to help ensure Ontario has a reliable, affordable, and clean electricity system.

Q9. Why not focus on securing more energy supply?

Electricity capacity and supply needs in the years up to and including 2024 are expected to be met through the planned actions identified in the 2021 AAR, including continued growth of the Capacity Auction, and resources secured through bilateral negotiations. While some of the capacity needs identified for 2025 and 2026 are expected to be met through the 2021 plans, more supply is needed. Ontario is on track to acquire the electricity supply needed to power increasing electrification and economic growth.

In August 2022, the IESO concluded the first medium-term RFP, and has offered five-year contracts to several existing resources that are currently off contract or coming off contract. The continued use of existing facilities is a cost-effective way to help address immediate electricity supply needs, as well as ensuring these facilities continue to support reliability in Ontario. Together these facilities contribute more than 700 MW of capacity to the system, ensuring ongoing value from previous investments in supply. This supply will be available between 2024 – 2026, at an average contract price that was about 30 percent lower than the average price under their previous contracts.

Additionally, in October 2022, the Ontario government directed the IESO to acquire 4,000 MW of new electricity generation and storage resources to ensure the province has the electricity it needs to support a growing population and economy. The IESO then issued the Long-Term Request for Qualifications (LT1 RFQ) to establish a list of applicants with the experience and capability to successfully develop, construct and operate facilities acquired through these procurements. The LT1 RFQ is now complete.

Q10. Should Ontarians be worried about having enough electricity in 2025 and beyond?

Ontario is on track to acquire the electricity supply needed to power increasing electrification and economic growth emerging in 2025.

The IESO is responsible for planning for the province’s future energy needs, while paying close attention to how the sector is evolving.

The new and expanded CDM programs will complement and contribute to this package of resource procurements to meet the emerging system needs and ensure system reliability over future decades.