Hydro-Québec Solutions Efficaces (OSE 5.1)
Eligibility & Details
What this program funds and who can apply
Program Description
Incentive program covering up to 90% of eligible costs for energy-efficiency, electrification, and demand-management projects at commercial, institutional, industrial, and agricultural facilities on the Hydro-Québec grid. Refreshed to version 5.1 on March 31, 2025 with enhanced cold-climate heat-pump incentives and a formal pivot toward electrification of fossil-fuelled process heat. Prescriptive ('simplified') pathway via the OSE online tool for standard measures; customized pathway for complex or innovative projects. Projects can claim up to $5 million and $60,000 separately for energy analysis support.
Eligibility Requirements
- Commercial, institutional, industrial, or agricultural facility located in Quebec
- Hydro-Québec business customer (or customer of eligible alternative electricity source)
- Facility uses electricity for the retrofitted end-use, OR project electrifies an existing fossil-fuel process
- Project measures result in verifiable energy savings, demand reduction, or electrification of process heat
- Project is implemented in the applicant's own building or operations
- Equipment meets Hydro-Québec's efficiency specifications (for prescriptive measures) or passes a custom-measure technical review
Quick Assessment
Funding Details
- Amount
- Up to $5,000,000 per project (incentive), plus up to $60,000 for energy analysis
- Type
- Grant
- Level
- Provincial
- Co-Funding
- Up to 90% of eligible costs
- Deadline
- Ongoing (continuous intake)
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to win Hydro-Québec Solutions Efficaces (OSE 5.1) — $19
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 8-document checklist with what each reviewer is actually checking
- 7-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 5-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what reviewers score on
How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe OSE 5. 1 refresh materially increased cold-climate heat-pump incentives and made electrification of fossil-fuel process heat a first-class use case — if your Quebec operation still runs natural-gas boilers, process heaters, or oil-fired dryers, the custom path can now cover a large share of the switchover cost. Start by using the OSE tool on Hydro-Québec's site to get a quick incentive estimate for any prescriptive measures; this establishes the baseline. For anything bigger or novel, request an energy advisor meeting early — the separate $60K energy-analysis incentive can pay for the feasibility study that shapes the custom project. Budget is finite annually, so file prescriptive applications in Q1 (January–March) and launch custom-project discussions early in the calendar year to secure a spot.
Success Profile
A Quebec commercial, institutional, industrial, or agricultural Hydro-Québec business customer replacing aging HVAC, lighting, or process equipment with high-efficiency alternatives — or switching a fossil-fuel process (boiler, process heater, dryer, glycol heat) to electrified technology. Facility has clear baseline energy data, a defined project scope with vendor quotes, and the capital resources (or financing plan) to cover the 10%+ non-incentivized portion. Repeat Hydro-Québec program participants have an edge on custom projects due to familiarity with M&V requirements.
Evaluation Criteria
Prescriptive measures evaluated against published equipment-efficiency specifications and verified installation — no competitive scoring; all qualifying applications are approved. Custom measures evaluated on: (1) Energy savings or demand-reduction magnitude and persistence; (2) Electrification of fossil-fuel processes (prioritized under OSE 5.1); (3) Quality and credibility of the measurement-and-verification plan; (4) Cost-effectiveness (incentive per kWh saved or kW reduced); (5) Alignment with Hydro-Québec's annual efficiency and electrification targets.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 8
Eligible Expenses 9
- High-efficiency HVAC equipment (chillers, rooftop units, heat pumps, cold-climate heat pumps)
- Process electrification equipment (electric boilers, industrial heat pumps, induction heating, infrared systems)
- High-efficiency motors, variable frequency drives, and compressed-air system upgrades
- Advanced lighting (LED retrofits, high-bay conversions, controls)
- Building automation and controls enabling demand response
- Refrigeration upgrades (for commercial and agricultural cold storage)
- Envelope upgrades when tied to HVAC optimization (insulation, windows, air sealing)
- Installation labour and commissioning
- Measurement-and-verification equipment and initial energy analysis (up to $60K separate incentive)
Ineligible Expenses 6
- Equipment installed before incentive reservation / project approval
- Fossil-fuel equipment replacement with more efficient fossil-fuel equipment (program supports electrification, not fuel-to-fuel upgrades)
- Residential equipment or housing-focused retrofits
- Routine maintenance, repair, or like-for-like replacement without efficiency gain
- Costs recoverable through standard utility rates or bundled in another Hydro-Québec program
- Demolition or site-preparation costs unrelated to the efficiency measure
Intake Periods
Continuous intake (no deadline). Budget envelopes are annual; apply early in Hydro-Québec's fiscal year for highest approval probability on custom projects.
Deadline Notes
No fixed deadline. Program operates on a continuous-intake basis. Hydro-Québec reviews applications as received. Budget envelopes are set annually — apply early in Hydro-Québec's fiscal year (January–March) for highest approval probability on larger custom projects. OSE 5.1 is the current version (in effect since March 31, 2025) and supersedes OSE 5.0.
Open Application Portal →Ineligible Organizations
- Residential customers (program is for commercial, institutional, industrial, and agricultural customers only)
- Customers outside the Hydro-Québec grid (or not on eligible alternative-electricity sources)
- Projects located outside Quebec
- Applicants who have already installed the equipment before incentive reservation (no retroactive approvals)
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskHydro-Québec can require repayment if equipment is removed, decommissioned, or replaced with less-efficient equipment before the end of the measure's useful life, or if post-installation measurement-and-verification reveals significantly lower energy savings than claimed. For most prescriptive measures, clawback risk is low.
How Hydro-Québec Solutions Efficaces (OSE 5.1) Compares
Side-by-side with similar programs
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