Ontario Electricity Rebate Drops to 15.7% on Nov. 1
The rebate falls as winter rates ease. Here is what it means for EV chargers, heat pumps and water heaters in Ontario homes.
The Ontario Electricity Rebate shrinks on 1 November, but base electricity prices are falling at the same time. For most households the change should not alter whether an electric upgrade pays off. It does make the time you use power matter more.
What happened
According to Brampton Guardian, the Ontario Energy Board (OEB) has announced new electricity prices for the winter time-of-use period starting 1 November. The details reported:
- The Ontario Electricity Rebate falls to 15.7 per cent from 23.5 per cent.
- For a typical home using 700 kWh a month, the rebate drops to about $23 from about $36.
- The OEB says the lower rebate is possible because electricity prices are lower year over year. It expects the overall rate of increase in customer bills to stay consistent with previous years.
- Customers on the ultra-low overnight (ULO) plan get new, lower year-round rates.
- Tiered-price customers get an extra 400 kWh a month at the lower Tier 1 rate over the winter.
- The winter time-of-use period runs from 1 November to 30 April. Running a dishwasher or washing machine after 7 p.m. and before 7 a.m. falls in the off-peak window.
The OEB says the effect on any one bill depends on how much energy you use, when you use it and which utility serves you. It offers an online bill calculator.
What it means for your renovation budget
Nothing here changes what an installer charges. These are running costs, not project prices. Still, the direction matters if you are weighing an electric upgrade, because the price you pay depends on the plan you are on and the hours you use power.
EV chargers
Overnight charging is the clearest winner. The ULO plan is built for people who use most of their electricity overnight, and its rates are lower from 1 November. A Level 2 charger installation currently averages $1,800 for a mid-range job, with a typical range of $1,400 – $2,350 before GST/HST. That is for our default 15 m cable run. A longer run, a panel upgrade or trenching pushes the price up. See our [EV charger cost guide](EV charger installation) for the detail.
In Ontario, electrical permits and notifications are filed with the Electrical Safety Authority (ESA) by a licensed electrical contractor. Hire a licensed contractor and make sure the permit is part of the quote.
Heat pumps
Switching from gas or oil to a heat pump moves your heating onto electricity. A lower winter rate helps the running-cost case, but your equipment choice and home matter more. A ducted air-source heat pump costs $12,000 for a typical mid-range job, with a range of $9,350 – $15,600, before GST/HST. A dual-fuel hybrid that keeps your gas furnace comes in at $13,000. Our [heat pump cost guide](Heat pump installation) compares the options:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Ductless multi-zone (whole home) | $10,900 | $8,450 – $14,100 | – |
| Ducted air-source heat pump | $12,000 | $9,350 – $15,600 | – |
| Dual-fuel hybrid (keeps gas furnace) | $13,000 | $10,100 – $16,900 | – |
Ontario Home Renovation Savings offers up to $7,500 for a cold-climate air-source heat pump in homes heated by electricity, oil, propane or wood. For gas-heated Enbridge customers it is up to $2,000. You need pre-approval and a participating contractor. Get both before you sign.
Water heaters
A heat pump water heater runs on electricity and can use off-peak hours well if it has a timer or smart controls. A typical mid-range water heater replacement is $2,500. Choosing a heat pump (hybrid) model is $5,750, and a gas tank is $2,500, both before GST/HST. Our [water heater cost guide](Water heater replacement) has the full table. If the new unit needs a dedicated circuit, expect that to add to the price.
Solar
A smaller rebate means grid power is a little less subsidised on the bill, but lower base rates mean the picture is mixed. We would not size or buy a system on this announcement alone. A mid-range 6 kWp system is $25,400, with a range of $19,800 – $33,000 before GST/HST. Ontario's solar incentive is $1,000/kW up to $5,000, capped at 50% of cost, and it does not apply with net metering. See the [solar cost guide](Solar panels).
How we work out these figures
Our estimates combine labour hours multiplied by local rates with material prices, checked against market prices and real quotes. All figures are before GST/HST, which is 13% HST in Ontario. They update as the model does, so the numbers above are always the current ones.
What to do now
- Check your plan. Use the OEB bill calculator to compare time-of-use, ULO and tiered pricing for your usage.
- Shift what you can. Timers on laundry and dishwashers cost nothing.
- Price the upgrade before you decide. Read the relevant cost guide first, then get at least three written quotes.
- Test any quote. Our "is my quote fair" tool compares a quote against our local figures, and it can flag a number that looks too high or too low.
Rates and rebates are set by regulators and can change, so confirm your own bill details with your utility before you commit to a big electric upgrade.