Updated June 2026 · Verified against Independent Electricity System Operator (IESO) guidelines
▲ Growing ✓ First-Timer Friendly Reimbursement Est. 2011
Grant Provincial Active

IESO Save on Energy Retrofit Program

Independent Electricity System Operator (IESO)
Maximum Funding
Custom: $1,800/kW + $0.20/kWh, up to 50% of eligible costs....
Ongoing — continuous intake (project pre-approval required before work begins)
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Difficulty
Moderate
Payment
Reimbursement
Trend
Growing
First-Timers
Friendly ✓
Co-Funding
50%
IESO Save on Energy Retrofit Program provides up to 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%). Ontario's flagship electricity-efficiency incentive for existing buildings and facilities, delivered by IESO under the Save on Energy brand. The program covers up to 50% of eligible costs. Applications are accepted on an ongoing basis. Approval odds: ~70% (GrantCompass analysis)
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Eligibility & Details

What this program funds and who can apply

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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 (Barrie/Muskoka, Belleville/Peterborough, Brant, Caledonia-Norfolk, Elmira, Kenora, Kingston area, Niagara region, Ottawa, Pembroke area, Ramore, Waubaushene, Woodstock, and Greater Windsor Area, as of the June 30, 2025 update — the adder does not apply to solar PV DERs, horticultural lighting, horticultural lighting controls, or EMIS measures). 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
  • Application must be submitted and the Participant Agreement accepted BEFORE entering into a binding commitment (a purchase order, a signed contract, or equipment ordered) — work itself may start once the application is submitted
  • Lessees must have written consent from the facility owner to participate
  • MUSH sector (municipalities, universities, schools, hospitals) explicitly eligible
Provinces
Ontario
Industries
All
Business Stage
Startup Growth Established Expansion

Quick Assessment

Difficulty
Moderate
Competition
Low
First-Timer
Friendly

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

Competition
Low
Deadline
Ongoing
Approval
Good
Approval Rate
~70%
Accessibility
--/5
Competition
--/5
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How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

Submit the application and accept the Participant Agreement BEFORE entering into a binding commitment — a purchase order issued, a contract signed with a service provider, or equipment ordered (even if unpaid).

Premium See what trips up most applicants for this program — and how to avoid it.

Success Profile

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Evaluation Criteria

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What's in this Playbook

Everything you need to win IESO Save on Energy Retrofit Program

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Scope the Project and Check FSA Identify the measures (lighting controls, HVAC, motors, etc.) and confirm which stream applies (Prescriptive for standard measures, Custom for engineered savings). Check the facility's Forward Sortation Area against the published Regional Adder list to see whether double incentives apply.

Required Documents 9

✓ Online application via Save on Energy Program Portal (online.ieso.ca)
✓ Facility information and utility account details

Eligible Expenses 8

Ineligible Expenses 7

Intake Periods

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Natural gas utility efficiency incentives (Enbridge Gas DSM) Federal Greener Homes / Greener Buildings programs Canada Greener Homes Loan / CIB retrofit financing Ontario Industrial Energy Efficiency Program (IEEP)
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk

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How IESO Save on Energy Retrofit Program Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
IESO Save on Energy Retrofit Program Custom: $1,800/kW + $0.20/kWh, up... Moderate Reimbursement Ongoing — continuous...
Ontario Job Grant (formerly Canada-On... Up to $10,000 per employee Easy Varies Ongoing — year-round...
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...

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Frequently Asked Questions

Quick answers to the questions founders most often ask about IESO Save on Energy Retrofit Program

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Can I apply if I'm a lessee without owner consent?
No — lessees must provide written consent from the facility owner to participate. Without this, the application is rejected, even if all other criteria are met. This is a hard eligibility requirement.
What's the typical project size for a small business?
Most SMEs receive $10K–$250K in incentives. A 50,000 sq ft warehouse lighting upgrade typically earns $15K–$40K. Custom-stream industrial HVAC or compressed-air projects often exceed $100K.
When can I start work on my project?
You can start work as soon as you submit your application — the hard rule is that you must submit the application and accept the Participant Agreement BEFORE entering into any binding commitment (a purchase order, a signed contract, or equipment ordered, even unpaid). Starting work before pre-approval is allowed, but you assume the risk of a lower incentive or a refusal.
Can I stack this with other programs?
You can combine this with natural gas utility incentives (e.g., Enbridge DSM) and federal Greener Homes programs, but any cost another government program already covers (or will cover) is removed from Retrofit's eligible-cost base before the incentive is calculated — it reduces the Retrofit incentive rather than stacking on top of it. Loans like CIB financing are not government assistance and are not affected.
Do I need to pay upfront and get reimbursed?
Yes — the program is a reimbursement model. You pay for equipment and installation upfront, then submit receipts after project completion to receive the incentive payment.

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