Ontario Winter Hydro Rates Fall, but the Rebate Shrinks Too

Ontario's regulated electricity prices fall on 1 November 2026, but the provincial rebate that sits on top of them is shrinking as well. For a household, the net effect on the monthly bill will depend on how much power you use, when you use it and which utility serves you. For anyone weighing an electric upgrade, the practical lesson is that running costs depend on when you use power, not just how much.

What happened

According to DurhamRegion.com, the Ontario Energy Board (OEB) has set lower Regulated Price Plan (RPP) prices for households, small businesses and farms, effective 1 November 2026. The changes apply to the time-of-use plan, the ultra-low overnight (ULO) plan and the tiered plan.

At the same time, the Ontario Electricity Rebate (OER) is being cut. The report says it falls to 15.7 per cent from 23.5 per cent. For a typical customer using 700 kWh a month, that means a rebate of about $23, down from about $36.

The OEB says lower RPP prices are what allow the rebate to come down, and that the overall rate of increase in customer bills stays consistent with previous years.

Other details from the report:

• Winter time-of-use pricing runs from 1 November to 30 April, with off-peak, mid-peak and on-peak periods.
• Off-peak hours are after 7 p.m. and before 7 a.m.
• Tiered-plan customers get an extra 400 kWh a month at the lower Tier 1 rate over the winter.
• The OEB has an online bill calculator, and low-income bill payment support programs exist.

What it means for project costs

Nothing here changes the price of installing equipment. Our figures are labour hours × local rates plus materials, checked against market prices and real quotes, and they are before HST (13% in Ontario). What changes is the running-cost side of the decision.

Heat pumps

A ducted air-source heat pump typically costs $12,000 installed, with a usual range of $9,350 – $15,600. Winter is when a heat pump draws the most power, so the new winter rates matter most here. Because the rebate is shrinking, we would not assume your bill will drop. Compare a quote against your actual winter usage and plan, using the OEB calculator. Our [heat pump cost guide](Heat pump installation) covers the system options, including a dual-fuel hybrid that keeps your gas furnace as a backup.

Ontario's Home Renovation Savings programme offers up to $7,500 for a cold-climate air-source heat pump in homes heated by electricity, oil, propane or wood, or up to $2,000 for gas-heated Enbridge customers. Pre-approval and a participating contractor are required.

EV chargers

Overnight charging is where the pricing structure helps most. The report notes the ULO plan is designed for people who use more power overnight, such as those charging an EV. A home charger typically costs $1,800 (usual range $1,400 – $2,350). Electrical work needs a licensed contractor and, in Ontario, a permit or notification filed with the Electrical Safety Authority. See our [EV charger cost guide](EV charger installation).

Solar

Solar costs typically $25,400 for a 6 kWp system (range $19,800 – $33,000). Lower regulated prices stretch out the payback on the power you would otherwise buy, so it is worth modelling the savings with current rates rather than older ones. Ontario's programme pays $1,000/kW up to $5,000 (maximum 50% of cost, and not with net metering). A battery adds $300/kWh up to $5,000 when installed with new solar. See our [solar cost guide](Solar panels).

Cheap ways to cut the bill now

The source suggests shifting dishwasher and laundry cycles to off-peak hours, sealing air leaks, using a programmable thermostat and checking whether the ULO plan suits an overnight-heavy household. These cost little or nothing and do not depend on any rate change.

Before you sign a quote

Rates move each year, so avoid any contractor who promises a fixed monthly saving. Ask for the assumptions behind a savings claim, and run the numbers against your own bills. If you already have a quote, our "is my quote fair" tool checks it against our live cost model for your region.