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New Home Construction Incentives in Ontario

Available Incentives

Prescriptive Energy-Efficiency Measure Incentives

The prescriptive incentives available to home builders and renovators are for a range of defined electricity-saving measures that can be installed in the home. The dollar amounts attached to each measure are provided in the table below: 

Prescriptive Measure


Prescriptive Incentive

All Off Switch

Master switch that controls multiple electrical sockets in multiple locations in the home (hard wired)


ENERGY STAR® Certified Central Air Conditioner (CAC)

Minimum 15 SEER and 12.5 EER as identified by the IESO**


Lighting Control Products

  • Hard-wired indoor and outdoor timers and motion sensors
  • Hard-wired dimmer switches


ENERGY STAR Certified Niche Lighting

  • ENERGY STAR Certified recessed lighting – must have GU24 replacement
  • ENERGY STAR Certified under the counter lighting
  • ENERGY STAR Certified LED lighting



ENERGY STAR Certified indoor light fixtures (hard-wired)

  • 1 or 2 sockets
  • 3 or more sockets




 * Please see IESO eligible CAC list here. All CACs are eligible as long as they have a minimum SEER of 15 and minimum EER of 12.5, as identified by the AHRI Certification Directory.

Performance-Based Measure Energy-Efficiency Incentives

The performance-based incentives for new homes are as follows:
A new home that achieves an EnerGuide 83 or 84 performance rating is eligible for $500***.
A new home that achieves ENERGY STAR v12.3 for New Homes guidelines for energy efficiency as established by Natural Resources Canada****
A new home that achieves an EnerGuide 85 or better performance rating is eligible for $1,000***.

***In order to qualify for the incentive, the subject home has to have a final performance rating of 83, 84, 85 or better, as demonstrated by a submitting a copy of the “EnerGuide Energy Efficiency Evaluation Report” signed by a qualified energy advisor confirming such rating along with the Final Application.
****As evidence by a copy of the ENERGY STAR® v12.3 Certified New Home Certificate signed by a qualified energy advisor.

Custom Measure Energy-Efficiency Incentives

This funding stream is exclusively for innovative, cost–effective, energy-efficiency building projects that do not qualify under either the Prescriptive or Performance-Based funding streams. Incentives for Custom measures are provided on a savings basis. Incentives are the greater of $800/kW for First Year Demand Savings, or $0.10/kWh for First Year Energy Savings. The total dollars available for custom measure incentives are capped at 50 percent of the total Project Cost. For instructions on how to model the Custom measure to calculate the incentive, please click here.

Custom measures need to meet the following criteria:

  • Measures must target space heating, space cooling, building envelope or water heating end uses; lighting and appliance projects are excluded.
  • Measure must be more efficient than the standard prescribed by Ontario Building Code.
  • All machinery, equipment, parts, fixtures, and any other accessories or items associated with the custom measure are commercially reasonable equipment and the costs thereof are commercially reasonable.
  • Measure must have a positive Total Resource Cost (TRC) test, as identified by the Residential New Construction Resource Planning Tool.
  • Measure cannot be a pilot or demonstration project of unproven results; measure must be generally commercially available.
  • Measure cannot be part of IESO's Feed-In Tariff Program.
  • Measure cannot be eligible for Prescriptive or Performance-Based Incentives.


To determine if your Custom measure is eligible, please contact your local electric utility.

Custom Measure Modelling Instructions

Custom measures are required to be modelled using the Residential New Construction Resource Planning Tool. This exercise will provide the details to calculate the custom measure incentive.

Instructions on how to use the Resource Planning Tool can be found here.

If you require assistance with modelling your Custom measure, please contact your local electric utility.

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