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Local Initiatives

Local initiatives will encourage competition, innovation, cost savings and customer-driven solutions.

As part of the 2021-2024 Conservation and Demand Management (CDM) Framework, local initiatives are being developed to deliver CDM savings in targeted areas of the province with identified system needs. CDM solutions to support local initiatives are being sourced using competitive mechanisms, such as open procurements. This approach enables a broad range of participants to propose CDM programs and opportunities, and encourages competition, innovation, cost savings and customer-driven solutions.

Local initiatives are intended to:

  • deliver 57 MW of demand savings and 230 GWh of energy savings over four years as per the 2021-2024 CDM program plan 
  • demonstrate the ability to use CDM as a resource to achieve specified demand and/or energy reductions that can help address regional and/or local electricity system constraints, as identified through the IESO’s regional planning process 
  • identify how targeted CDM can be used as a resource in the service territories of local utilities to address distribution system needs 
  • be cost effective and not duplicative of current province-wide CDM programs.

Targeted areas for local initiatives

The areas selected for the first cycle of local initiatives in Ontario include:

  • Richview South area in Toronto
  • York Region
  • Ottawa
  • Belle River area in Essex County.

Competitive procurements will be used for the target areas in the first cycle and are expected to be in the range of 500 kW to 10 MW. Additional information including the specific target areas (within the broad regions identified above), target customer sectors, program types and/or eligible technologies will be defined in forthcoming procurement solicitation document(s), such as a Request for Proposals (RFP). 

When available, open opportunities will be posted publicly on

Ottawa DER Large Solar PV Funding Incentive

The Save on Energy Retrofit program is offering an incentive for distributed energy resources (DERs) for businesses in Ottawa. The incentive is for the installation of large solar photovoltaic (PV) systems and is $860 per kW AC (minimum generation capacity of 50 kW and maximum incentive is capped at 1,000 kW). The solar systems are intended for load displacement so the size of the solar panel array cannot exceed the maximum load of the facility.

Benefits of installing solar PV systems include reducing greenhouse gas emissions, reducing costs by lowering metered energy consumption and helping to reduce constraints on the electricity grid.

The measure is available in Ottawa because it has been identified as electricity constrained through the regional planning process. Facilities must be located within an eligible Forward Sortation Area (FSA) to receive this incentive.

The eligible FSAs are: K1V, K1X, K2J, K2K, K2L, K2M, K2S, K2T, K2V, K2W, K4M, K1A, K1B, K1C, K1E, K1G, K1H, K1J, K1K, K1L, K1M, K1N, K1P, K1R, K1S, K1T, K1W, K1Y, K1Z, K2A, K2B, K2C, K2E, K2G, K2H, K2P, K2R, K4A, K4B, K4P.

The systems must be mounted on a new or existing rooftop or wall; be “behind-the-meter”; not be entered into a “net metering” contract with the local distribution company for bill credits.

Companies interested in accessing the incentive are strongly encouraged to speak to their local distribution company to discuss the connection process and the allowable maximum capacity of the solar PV system before submitting a Retrofit program application for this measure.

Please see Questions and Answers on the DER incentive in Ottawa.

When to apply for funding steps for Ottawa Solar DER

Contact Details

Retrofit regional adders

As part of the Local Initiatives Program, the IESO has introduced Retrofit regional adders in some areas of the province where electricity constraints exist.

The purpose of these adders is to encourage further uptake in the Retrofit program to assist in reducing demand for the transmission assets in these constrained areas. The target areas were selected in consultation with the IESO’s system planners and include regions that have been identified as electricity-constrained through the regional planning process.

The adders have been extended and will be available until December 31, 2024; all non-lighting prescriptive measures will be eligible for double the incentive normally available.

Eligible applications will be identified by Forward Sortation Areas (FSA), the first three characters of the postal code. Retrofit regional adders were introduced in the following target areas (adder zones) in April 2023. Facilities undertaking the retrofit must be located in the target areas identified by FSA to be eligible for the increased incentive:

  • Niagara region: L0S, L2A, L2E, L2G, L2H, L2J, L2M, L2N, L2P, L2R, L2S, L2T, L2V, L2W, L3B, L3C, L3K, L3M, N1A and portions of L0R – please speak to your Save on Energy representative for more information
  • Kingston area: K7K, K7L, K7M. K7N, K7P, K7G
  • Southern Huron Perth: N0L, N0M, N4X, N0K
  • Pembroke area: K8A, K8B, K8H
  • Kenora: P9N, P0X

New areas where Retrofit regional adders are available are effective October 30, 2023:

  • Waubaushene: L0K, L0L, L4R, L9M
  • Barrie/Muskoka: L0M, L3V, L4M, L4N, P0A, P0B, P0C, P0E, P0G, P1H, P1L, P1P, P2A
  • Elmira: N0B, N3B
  • Peterborough/Belleville: K0L, K0M, K8N, K8P, K8V

If your facility is located in one of the listed FSAs, please speak to your Save on Energy representative about accessing the increased incentive. Representatives can be contacted through the Retrofit Support line at 1-844-303-5542 or by email at

Non-duplicative province-wide programs