Energy manager standing with clipboard at variable frequency drive

Project Incentives

Your customer can get up to 70 per cent of complex project upgrade costs back through capital incentives.

Updates to the Process and Systems Upgrades program

The Process and Systems Upgrade program is delivered by the Independent Electricity System Operator (IESO).

Visit our FAQs for more information.

Project incentives are available for a variety of energy-saving projects. Whether installing variable frequency drives on motors or redesigning an entire system, there is an incentive available.

The project capital incentive is designed for very large process and system energy efficiency projects that your customer is looking to undertake.

Project Incentive summary of incentives, requirements and terms

Project incentive
Incentive The lesser of:

Up to 70 per cent of project costs


$200 per MWh of annual electricity savings


The amount that would provide a project payback of one year
Minimum project energy savings
300 MWh per year
Measurement and Verification terms One year
Payment terms A) Advance payment: Payments are made during construction as costs are incurred.

B) Deferred payment: Payments are made at the completion of the project and after measurement and verification have been completed.


To be eligible for project incentives, your customer must be a single facility connected to a local hydro company distribution network. The proposed project must be in service before December 31, 2020 and provide annualized electricity savings of greater than 300 MWh.

Note the following projects do not qualify for capital incentives unless otherwise approved in writing by the LDC: lighting, demand response, electricity generation or fuel-switching projects.