IESO Save on Energy Retrofit Program
Eligibility & Details
What this program funds and who can apply
Program Description
Ontario's flagship electricity-efficiency incentive for existing buildings and facilities, delivered by IESO under the Save on Energy brand. Two streams: a Prescriptive track paying pre-set incentives for named measures (HVAC controls, motors, VFDs, network lighting controls, manufacturing equipment, solar PV, greenhouse lighting, data-centre measures, and more) and a Custom track paying $1,800/kW of peak-demand reduction or $0.20/kWh of energy savings, whichever yields more, up to 50% of eligible project costs. Regional Adders double incentives for most non-lighting measures in electricity-constrained Forward Sortation Areas (parts of Niagara, Kingston, South Huron, Perth, Pembroke, Kenora, Waubaushene, Barrie/Muskoka, Elmira, and Peterborough/Belleville as of the June 2025 update). Active as of 2026-04-23.
Eligibility Requirements
- Ontario electricity customer (owner or lessee) of a commercial, industrial, institutional, multi-residential, or agricultural facility
- Facility connected to a Local Distribution Company (LDC) or to the IESO-controlled grid
- Project must achieve verifiable electricity savings through eligible measures
- Pre-approval required before starting construction, installation, or equipment purchase
- Lessees must have written consent from the facility owner to participate
- MUSH sector (municipalities, universities, schools, hospitals) explicitly eligible
Quick Assessment
Funding Details
- Amount
- Custom: $1,800/kW + $0.20/kWh, up to 50% of eligible costs. Prescriptive: set incentives per measure. Regional Adders double non-lighting incentives in eligible FSAs (still capped at 50%).
- Type
- Grant
- Level
- Provincial
- Co-Funding
- Up to 50% of eligible costs
- Deadline
- Ongoing — continuous intake (project pre-approval required before work begins)
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to win IESO Save on Energy Retrofit Program — $19
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 9-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
- 4-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 TipPre-approval is non-negotiable — starting construction or buying equipment before IESO approves the application disqualifies that equipment from the incentive, even if it would otherwise qualify. Check your facility's Forward Sortation Area (first three postal-code characters) against the Regional Adder list before committing to project scope — a facility in a qualifying FSA can earn double on most non-lighting measures, which often changes which projects are economic. For Custom projects, spend time on the Measurement & Verification plan up front; sloppy M&V plans cause engineering-review delays and incentive reductions. For Prescriptive projects, match equipment model numbers exactly to the published qualifying products lists — mismatches are the most common rejection cause.
Success Profile
Any Ontario business that owns or leases a facility paying an electricity bill, with a clearly defined equipment replacement or controls-upgrade project. Strong candidates have a facility manager or energy manager who knows the building, engaged equipment vendors familiar with IESO applications, and a willingness to run the pre-approval process before purchasing. Manufacturing facilities, warehouses, greenhouses, hospitals, schools, multi-res buildings, and commercial offices are all common recipients.
Evaluation Criteria
Applications are evaluated on technical eligibility rather than competitive ranking. Prescriptive projects must use equipment on the qualifying products list and meet installation specifications. Custom projects must pass engineering review demonstrating measurable electricity savings, with a credible Measurement & Verification plan and a baseline that reflects actual pre-retrofit consumption. Approved incentive amounts are calculated by formula ($1,800/kW + $0.20/kWh for Custom, or published Prescriptive rates) subject to the 50% cost cap. Regional Adder eligibility is determined by facility FSA.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 9
Eligible Expenses 8
- Qualifying energy-efficient equipment (HVAC controls, motors, VFDs, pumps, network lighting controls)
- Solar PV systems (through Prescriptive DER track)
- Manufacturing process equipment with energy-saving specifications
- Horticultural lighting and greenhouse controls
- Data-centre cooling and efficiency measures
- Building automation systems and EMIS deployments
- Engineering and commissioning services directly tied to the retrofit
- Measurement & Verification costs for Custom-stream projects
Ineligible Expenses 5
- Equipment installed before pre-approval
- Routine maintenance or replacement-in-kind without energy savings
- Non-electricity-related upgrades (natural gas-only measures belong to gas utility programs)
- Equipment that does not meet the qualifying product specifications
- Portions of project cost exceeding the 50% incentive cap
Intake Periods
Continuous, year-round. Pre-approval required before project work begins.
Deadline Notes
No fixed application deadline. Pre-approval must be secured BEFORE starting the retrofit work — incentives are not paid retroactively for projects that commenced before IESO approval. Expect 4–8 weeks for Prescriptive application review and 8–16 weeks for Custom-stream engineering review. June 30, 2025 brought increased custom rates ($1,200→$1,800/kW, $0.13→$0.20/kWh), new data-centre prescriptive measures, expanded Regional Adder FSA list, and updated greenhouse lighting incentives.
Open Application Portal →Ineligible Organizations
- Residential customers (single-family homes have separate Save on Energy programs)
- Facilities not connected to an Ontario electricity distribution system
- Businesses that have started construction or installation before pre-approval
- Projects receiving IEEP funding for the same measure (choose one)
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskIncentives can be recovered if the installed equipment is removed before the end of its expected useful life (typically 3–5 years), if post-installation documentation proves the project was materially different from what was approved, or if a post-award audit finds that eligibility or savings were misrepresented.
How IESO Save on Energy Retrofit Program Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| IESO Save on Energy Retrofit Program | Custom: $1,800/kW + $0.20/kWh, up... | Moderate | Reimbursement | Ongoing — continuous... |
| Ontario Innovation Tax Credit | Up to 8% tax credit | Moderate | Tax Credit Offset | Ongoing |
| Commercial Façade Improvement Grant P... | Up to $12,500 (50% of costs) | Easy | Reimbursement | Annual Intake |
| Creative Industries Funding | Varies | Moderate | Reimbursement | Ongoing (multiple... |
| FedDev Ontario Funding | Varies | Hard | Reimbursement | Ongoing |
Related Programs
Other programs you might be eligible for