June 2025 Retrofit program update

Changes to the Save on Energy Retrofit program will come into effect on June 30, 2025.

Changes include:

Increasing incentive rates for Custom non-lighting measures to $1,800/kW and $0.20/kWh from the existing rates of $1,200/kW and $0.13/kWh. The following changes will also take effect for Custom projects:
1. increasing the incentive threshold at which a Custom project will require a measurement and verification plan from $80,000 to $120,000
2. increasing the incentive threshold at which a Custom project will require additional engineering calculations from $10,000 to $15,000
Updating the list of local areas qualifying for regional adders to reflect forecasted electricity constraints, and introducing regional adders for Custom incentives
Introducing new Prescriptive data centre measures (ENERGY STAR^®-certified computer servers, computer server virtualization, ENERGY STAR^®-certified uninterruptible power supply)
Updating measure assumptions, deemed savings and certain incentives for Prescriptive greenhouse lighting and advanced greenhouse lighting controls measures
Updating measure assumptions and deemed savings for Prescriptive network lighting controls measure
Updating incentive structure for existing Prescriptive demand control ventilation measure for interior spaces

In addition, effective immediately, the Prescriptive Solar PV Distributed Energy Resources worksheet and measure have been updated for savings accuracy. The worksheet remains mandatory; applicants will now complete new fields (tilt, orientation and location) and enter outputs from the completed worksheet into the measure in the Retrofit portal when applying.

Custom Stream

Compared to the Prescriptive stream, the Custom stream accommodates a wider range of project types and captures electricity savings based on actual operating conditions. Non-lighting measures will receive an increased incentive rate of $1,800/kW or $0.20/kWh, whichever is greater. Incentives continue to be capped at 50 percent of eligible project costs.

All measures except for horticultural lighting, horticultural lighting controls, network lighting controls, solar PV distributed energy resources and industrial energy management information system measures will be eligible for Custom rates. Note that as of June 30, Custom incentives for specialty lighting, horticultural lighting, horticultural lighting controls, and network lighting controls will no longer be offered.

Due to this rate increase, a measurement and verification plan will be required for those Custom projects with an estimated incentive of at least $120,000 (an increase from the current $80,000 incentive requirement). Additionally, additional engineering calculations will be required for those Custom projects with an estimated incentive of at least $15,000 (an increase from the current $10,000 incentive requirement).

Note that any applications that have been pre-approved before June 30, 2025 will retain the pre-approved incentive rates. Participants with a pre-approved application cannot cancel and reapply for the new incentives.

Regional Adders

Retrofit regional adders are designed to encourage further adoption of energy-efficiency upgrades through the program to assist in reducing demand for transmission assets in constrained areas.

Retrofit regional adders, which currently offer double the standard incentive for Prescriptive measures, will be expanded to Custom measures. The Custom adders will enable applicants to receive double the new standard incentive rates of $0.20/kWh and $1,800/kW, up to 50 percent of the eligible costs, for projects implemented in areas with capacity constraints.

In addition, the areas qualifying for regional adders will be updated to reflect the latest areas with forecasted electricity constraints conducted by the IESO.

Most measures in these areas will be eligible for double the incentive, except for: Solar PV distributed energy resources, horticultural lighting, horticultural lighting controls, and the industrial energy management information system (EMIS) measures, which are not eligible for regional adders.

Update	Areas
New areas qualifying for regional adders	Greater Windsor Area: N0P, N0R, N85, N8H, N8L, N8M, N8N, N8P, N8R, N8S, N8T, N8V, N8W, N8X, N8Y, N9A, N9B, N9C, N9E, N9G, N9H, N9J, N9K, N9V, N9Y Brant: N3L, N3P, N3R, N3S, N3T, N3V Caledonia-Norfolk: L9G, N0A, N0E, N3W, N3Y, N4B Woodstock: N0J, N4S, N4T, N4V, N5C Ramore: P0K, P0M, P0N Ottawa: K2K, K2L, K2M, K2S, K2T, K2V, K2W Niagara: L0R (coverage for all postal codes in L0R)
Removal of existing area qualifying for regional adder; need no longer forecasted	Southern Huron Perth: N0L, N0M, N4X, N0K Applications submitted before June 30, 2025 remain eligible for the Prescriptive adder.

Update

Areas

New areas qualifying for regional adders

Greater Windsor Area: N0P, N0R, N85, N8H, N8L, N8M, N8N, N8P, N8R, N8S, N8T, N8V, N8W, N8X, N8Y, N9A, N9B, N9C, N9E, N9G, N9H, N9J, N9K, N9V, N9Y

Brant: N3L, N3P, N3R, N3S, N3T, N3V

Caledonia-Norfolk: L9G, N0A, N0E, N3W, N3Y, N4B

Woodstock: N0J, N4S, N4T, N4V, N5C

Ramore: P0K, P0M, P0N

Ottawa: K2K, K2L, K2M, K2S, K2T, K2V, K2W

Niagara: L0R (coverage for all postal codes in L0R)

Removal of existing area qualifying for regional adder; need no longer forecasted

Southern Huron Perth: N0L, N0M, N4X, N0K

Applications submitted before June 30, 2025 remain eligible for the Prescriptive adder.

Data Centres

The following new Prescriptive measures for data centre/computer rooms will be offered on June 30th to add to the Prescriptive Computer Room Air Conditioning (CRAC) measure that became available in January 2025. The new ENERGY STAR^®-certified computer servers, computer server virtualization, ENERGY STAR^®-certified uninterruptible power supply measures will be eligible for existing buildings that upgrade their existing equipment.

Prescriptive Measure	Description	Incentive
Computer Server (ENERGY STAR^® Certified)	Replace an existing server with an ENERGY STAR^®-certified server	$200 per ENERGY STAR^®-certified server
Computer Server Virtualization	Virtualization divides a single physical server into multiple unique virtual servers. This consolidation allows for the removal of excess, underutilized physical servers.	$200 per server removed
Uninterruptible Power Supply (ENERGY STAR^® Certified)	Replace an existing UPS with an ENERGY STAR^®-certified UPS	Up to $30 per ENERGY STAR^®-certified UPS

Prescriptive Greenhouse Lighting and Advanced Greenhouse Lighting Controls

The Prescriptive greenhouse lighting and advanced greenhouse lighting control measures will be updated to align more closely with the energy and demand savings achieved.

The incentive rates for the Prescriptive vegetable greenhouse LED grow lights and horticultural inter-lighting for vertical farming measures for new construction will be updated to reflect the expected electricity savings for these measures. The incentives for other greenhouse measures will remain the same. Worksheets will be updated to reflect new savings and rates.

Applicants of the Prescriptive vegetable greenhouse LED grow lights will be required to complete and submit a new mandatory worksheet containing new fields (wattage and photosynthetic photon efficacy of the efficient case) and enter the outputs from the completed worksheet into the measure in the Retrofit portal when applying.

Prescriptive Measure	Measure Updates
Vegetable Greenhouse LED Grow Lights	Current measure savings and incentives are based on the fixture quantity at $200 per fixture The updated measure savings are based on the efficient case wattage and photosynthetic photon efficacy Incentives will be based on the estimated energy savings at a rate of $0.15/kWh, up to $200 per fixture
Horticulture Interlighting	This measure will be split into two categories: inter-lighting excluding vertical farming, and inter-lighting for vertical farming; the assumed base case will be updated for each category. Inter-lighting excluding vertical farming: Incentive will remain the same for retrofit and new construction cases, at $100 per fixture Inter-lighting for vertical farming: Retrofit case will retain the current incentive of $100 per fixture New construction case will have an incentive of $40 per fixture

Prescriptive Measure

Measure Updates

Vegetable Greenhouse LED Grow Lights

Current measure savings and incentives are based on the fixture quantity at $200 per fixture
The updated measure savings are based on the efficient case wattage and photosynthetic photon efficacy
Incentives will be based on the estimated energy savings at a rate of $0.15/kWh, up to $200 per fixture

Horticulture Interlighting

This measure will be split into two categories: inter-lighting excluding vertical farming, and inter-lighting for vertical farming; the assumed base case will be updated for each category.

Inter-lighting excluding vertical farming:

Incentive will remain the same for retrofit and new construction cases, at $100 per fixture

Inter-lighting for vertical farming:

Retrofit case will retain the current incentive of $100 per fixture
New construction case will have an incentive of $40 per fixture

Prescriptive Network Lighting Controls

The savings assumptions for the Prescriptive network lighting controls (NLC) measure will be updated for improved accuracy. The worksheet will be updated to reflect new savings.

In addition, the NLC measure will be categorized as either of the following two types to improve ease of application, with the incentives for both types remaining at the current $0.35/kWh rate:

Existing building upgrade savings are determined by kW of lighting controlled
New construction savings are determined by the area (ft2) that is controlled by the lighting controls

Demand Control Ventilation (DCV) Measure

The Prescriptive DCV for interior conditioned spaces measure currently provides an incentive based on the square footage of the interior space served by a DCV system.

To make it easier to apply for this measure, the incentive will be updated to be $27 per ton of cooling provided by the rooftop units being controlled, using an approach that links the incentive to the cooling equipment rather than the number of DCV systems and square footage of conditioned space.

Retrofit program changes for June 2025