IESO recently released their electricity demand side management (eDSM) plan for 2025-2027. The plan outlines budgets and targets for IESO’s energy saving programs through SaveOnEnergy for the next 3 years. The released plan is part of their 12 year commitment to keep up with rapidly increasing grid demand.
IESO predicts a 75% load growth increase in the next 25 years. It’s important for the province to proactively find and fund cost-effective energy solutions to prepare for future energy demand.
Ontario is specifically looking to improve overall energy efficiency through incentives and increase distributed energy resource installations.
To start off their 3 year electricity demand side management plan, IESO and SaveONEnergy increased funding for existing energy programs. They also introduced new incentives for Ontario homeowners and businesses, such as the home improvement savings program and DER Business incentive.
Solar energy is set to play a major role in this transitional period. New programs include residential rebates of up to $10,000 for solar and batteries. On the commercial side, businesses can qualify for up to $860,000 for BTM (Behind-the-Meter) Distributed Energy System installations.
The overall budget allocated for the next 3 years is set at $1.8 billion, with a goal of 900MW of peak demand savings and 4.6 TWh electricity savings by the end of 2027.
These programs will not only support Ontario’s energy infrastructure, but will also immediately save homeowners and businesses money. By promoting clean energy self-generation systems, the province is opening the door for Ontario residents to become energy independent. This translates to significantly lower energy bills and demand charges.
Electricity Demand Side Management Budget
Below is IESO’s budget and expected cost effectiveness of existing programs for the next 3 years of the Electricity Demand Side Management plan.
Source: IESO
The numbers show increasing confidence in the province’s sentiment toward green energy projects. The retrofit program for businesses and institutions, which include solar installations, is currently the most funded program on the list.
SaveOnEnergy’s Home Renovations Program, which includes solar and battery installations, make up 10% of total funding.
Large DER projects will especially help the province with cost-effective energy savings.
Source: IESO
This chart from IESO shows that the retrofit program is projected to have one of the lowest levelized cost of energy (LCOE) and levelized cost of capacity (LCOC). DERs prove to be one of the best financial energy investments with cheaper build and operating costs.
The work to build up distributed energy systems now will save the province billions in the future. We look forward to helping Ontario transition to more sustainable and reliable energy sources.
