How to Save Money with Save on Energy Rebates in Ontario (2025 Guide)

If you're a business owner or contractor in Ontario, energy efficiency probably isn't just a buzzword—it’s a bottom-line decision. The good news? You don’t have to shoulder the cost of upgrades alone.

Save on Energy Rebates in Ontario offer powerful incentives to help businesses upgrade their lighting, HVAC systems, and more—without breaking the bank. Whether you're managing a warehouse, retrofitting an office, or helping a client cut operating costs, these programs make energy efficiency more accessible and affordable.

At LumaEnergy, we work with commercial and industrial properties across Ontario to unlock these savings through LED lighting retrofits and smart energy upgrades. In this guide, we’ll break down the most important programs, how to qualify, and how to get started—in plain English.

What Is Save on Energy?

Save on Energy is Ontario’s official energy-efficiency program, funded by the provincial government and delivered by the Independent Electricity System Operator (IESO). Its goal is simple: help businesses lower their electricity use while reducing energy costs.

The program provides:

• Rebates for upgrading lighting, controls, HVAC, and more

• Free energy assessments for qualifying small businesses

• Instant discounts at participating distributors

• Support for larger facilities to develop long-term energy strategies

It’s not just about reducing your electricity bill. These programs support carbon reduction goals, improve building performance, and often increase property value—especially when paired with smart lighting controls.

Curious what that could look like for your building? Read:👉 How Lighting Retrofits Improve Industrial Building Performance

4 Key Save on Energy Programs You Should Know

Ontario offers several programs through Save on Energy, each designed for different business sizes and project scopes. Whether you're replacing outdated lighting in a retail space or planning a full building retrofit, there's likely a program that fits.

Let’s look at the top four:

1. Retrofit Program

The Retrofit Program is perfect for medium to large commercial, industrial, and institutional buildings. It provides incentives for energy-efficient upgrades, including:

• LED lighting

• Occupancy sensors and smart controls

• High-efficiency HVAC units

• VFDs (variable frequency drives)

These rebates can significantly reduce your upfront costs—sometimes covering up to 50% of the project. For example, we helped a manufacturer in Brampton retrofit over 150 fixtures and receive $9,800 in rebates, cutting their energy use by over 35%.

Good fit for: Warehouses, factories, schools, offices, hospitals.

One of the most common upgrades is replacing old recessed fixtures with efficient pot light retrofits.👉 Learn more in our post: What Are Retrofit LED Pot Lights and Where Should You Use Them?

2. Instant Discounts Program

Sometimes you don’t need a full retrofit—you just need a quick win. The Instant Discounts Program offers immediate savings at the point of purchase when buying qualifying equipment through participating distributors.

You can save on:

• LED tubes and fixtures

• Smart thermostats

• Commercial refrigeration

• ECM motors for HVAC

• And more

There’s no application process, no waiting. Just discounted pricing when you buy. This is ideal for contractors or businesses looking to upgrade in phases or tackle smaller jobs.

💡 Pro Tip: Always ask your supplier if they're part of the program—or talk to us at LumaEnergy and we’ll source the eligible products for you.

Want to see what lighting upgrades can do? Read our post: Eco LED Lights vs Radiant LEDs: Which Is Better for Commercial Spaces?

3. Small Business Program

If you run a small operation—like a restaurant, retail store, auto shop, or dental clinic—the Small Business Program is tailored for you.

It includes:

• A free on-site energy assessment

• Up to $2,000 in energy-efficient upgrades

• Free installation of lighting, controls, or smart thermostats

To qualify, your business needs to use under 100,000 kWh of electricity annually. That includes a lot of small operations across Ontario. The process is fast and simple—Save on Energy sends an approved contractor, evaluates your space, and installs upgrades at no cost to you.

At LumaEnergy, we often help clients take advantage of this program alongside larger retrofits. If you’re unsure whether you qualify, we can help you check.

4. Expanded Energy Management Program

For larger or multi-site organizations, the Expanded Energy Management Program supports long-term energy-saving strategies by helping businesses:

• Hire or retain a full-time Energy Manager

• Access tools and training for advanced energy tracking

• Build a custom plan to reduce energy use across multiple locations

This is ideal for large corporations, property management firms, or manufacturers with multiple facilities. The program funds a portion of the Energy Manager’s salary and can also help with internal software tools.

You don’t need to navigate this alone—LumaEnergy can help your team plan and connect with the right contacts at IESO to get started.

How to Apply for Save on Energy Rebates

Applying for Save on Energy programs might sound complicated—but it’s actually pretty simple when you know the steps. Whether you're a contractor working on behalf of a client, or a business owner upgrading your own facility, here’s how it works:

Step-by-Step Process

1. Pick the Right Program

   Start by identifying which program fits your business best. Need help? Contact us for a free walkthrough.

2. Book an Energy Audit or Consultation

   For programs like the Retrofit Program or Small Business Program, an energy assessment is often required. At LumaEnergy, we provide these assessments across Ontario.

3. Gather Your Project Details

   This includes:

   • Equipment types

   • Building specs

   • Expected savings

   • Contractor quotes

4. Submit Your Application

   Most programs (like Retrofit) require pre-approval before you begin work. This ensures you don’t miss out on funding.

5. Install and Save

   Once approved, the upgrades can be installed. After completion, documentation is submitted and rebates are processed.

🔧 Need help with paperwork? LumaEnergy handles the full application process—so you can focus on the project, not the forms.

Real-World Example: Lighting Retrofit in Ontario

One of our recent clients, a 20,000 sq ft distribution facility in Mississauga, had outdated fluorescent lighting and high monthly hydro bills. After a full lighting audit, we helped them apply for the Save on Energy Retrofit Program.

Project Highlights:

• Replaced over 250 fixtures with high-efficiency LED high bays

• Installed motion sensors in low-traffic areas

• Received $6,200 in rebates through Save on Energy

• Cut lighting-related electricity use by 40%

💬 “We weren’t sure how to even start the rebate process. LumaEnergy made it simple—and the savings were immediate.” – Operations Manager

Why Work with a Qualified Contractor

While some programs like Instant Discounts are easy to access on your own, most Save on Energy rebates require experience, proper documentation, and precise energy calculations. That’s where working with a qualified contractor—like LumaEnergy—makes all the difference.

Here’s how we help:

• ✅ Energy audits tailored to your building and usage

• ✅ Pre-approval applications done right the first time

• ✅ Sourcing eligible products that qualify for rebates

• ✅ Installation by certified professionals

• ✅ Filing paperwork and follow-ups until the rebate is in your account

We’ve worked with warehouses, retail stores, clinics, restaurants, and industrial facilities across Ontario to maximize incentives and minimize downtime. Our goal is to make the process seamless for you and help you capture every dollar you're entitled to.

Conclusion: Don’t Miss Out on Energy Savings

These rebate programs aren’t just government talk—they’re real dollars back in your business. But funding is limited and updated regularly, so the best time to apply is always now.

If you're planning any kind of upgrade to your lighting, HVAC, or energy systems in Ontario, take advantage of Save on Energy incentives while they’re still available.

👉 Book a free energy audit with LumaEnergy and let’s get started on saving you money, improving your building, and reducing your footprint—without the hassle.

FAQs About Save on Energy Rebates in Ontario

Can I still get rebates if I already started my retrofit project?

Unfortunately, no. For most programs, especially the Retrofit Program, your project must receive pre-approval before you begin any installation or purchase. If you've already started, the project is usually ineligible. That’s why it’s critical to consult with a qualified contractor early in the planning process.

Are Save on Energy rebates considered taxable income?

Yes. Rebates received through Save on Energy may be considered business income and should be reported accordingly. Always consult your accountant or tax advisor to determine how to treat the rebate in your tax return. However, the capital cost of the upgrades may also be eligible for accelerated depreciation under certain tax rules.

How often do the rebate amounts change?

Rebate amounts are not fixed permanently. They’re reviewed by the IESO and can change yearly or mid-year based on market costs, budget availability, or updates to efficiency standards. Lighting categories, for example, have been adjusted multiple times. It’s smart to check the current rates or let LumaEnergy verify eligibility before you finalize your quote.

Can tenants or lessees apply for rebates, or only property owners?

Yes, tenants can apply—as long as they have authorization from the property owner. Save on Energy programs are available to tenants, landlords, and property managers. In many cases, both parties can benefit: tenants save on hydro bills, and landlords improve asset value.

What’s the difference between prescriptive and custom incentives in the Retrofit Program?

• Prescriptive incentives offer fixed rebate amounts per unit (e.g. $15 per LED high bay).

• Custom incentives are calculated based on energy savings, typically at a fixed rate per kWh saved.Custom projects are ideal when you’re using specialized controls, multi-system upgrades, or making changes that don’t fall under standard product categories.

Is Save on Energy different from IESO?

Save on Energy is run by the IESO (Independent Electricity System Operator). IESO manages Ontario’s electricity grid and conservation programs. So while they’re part of the same organization, Save on Energy is the public-facing program brand used to deliver the incentives.

Can I get help with applications even if I don’t go through a distributor?

Yes. Even if you buy your own products or work with your own installer, you can still apply for rebates—as long as your project and process meet eligibility rules. That said, working with an experienced contractor like LumaEnergy gives you a better chance at full compliance and higher rebate returns.