Ontario throws shade on solar PV incentive – reminetwork.com

Solar photovoltaic systems will generate more modest rebates for some prospective investors aiming to connect to Ontario’s electricity grid. As of last week, incentives offered through the provincial Save on Energy program will top out at $770 per kilowatt (kW) of capacity for installation of new small-to-medium systems ranging from 10 kW to one megawatt (MW). That’s a 10 per cent drop from the $860/kW previously offered for systems of that size that could augment distributed energy resources (DER) in the province.
The new lower rate is one of five adjustments under Save On Energy’s prescriptive measures stream, which conveys set dollar amounts tied to specified types of equipment. There is also a 14 per cent cut in the incentive for networked lighting controls, reducing it from $0.35 per kilowatt-hour (kWh) to $0.30 per kWh, along with lower incentives for three other energy-efficient lighting products employed in greenhouses or cannabis growing operations.
A summary of the changes posted on the Save on Energy website advises that the revised incentives are more in tune with the energy and peak demand savings that the five measures deliver and will support the “cost-effectiveness and affordability” of the overarching retrofit program. However, applications submitted into the approval queue prior to June 30, 2026 will still qualify for the more lucrative incentives if they are deemed to be complete.
Retrofit project proponents could also now qualify for a newly introduced incentive for energy-efficient clean water pumps. That’s offered provincewide at rate of $15 per horsepower (HP) of capacity to a maximum of 200 HP, but applicants based in designated areas where the electricity transmission system is deemed to be “constrained” qualify for a regional adder, pushing the incentive up to $30/HP.
The recent changes come in sync with the launch of a new online tool to provide navigational assistance through the maze of energy efficiency programs and incentives. The Save on Energy Funding Finder has been designed to steers users to available options for their consumer category and project purposes through a series of simple prompts and clicks.
Prospective applicants in the commercial real estate and facilities management sectors can quickly get channelled into the applicable stream for commercial, multifamily or institutional properties, then led to a breakdown of measures under the broader categories of: equipment upgrades: peak demand management; energy management and coaching; and feasibility study funding. Other program information pathways are laid out for small businesses, agri-businesses, residential householders and First Nations.
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