Save on Energy Lighting Incentives for Ontario Contractors
Save on Energy lighting incentives changed on June 30, 2026, and if you are quoting Ontario retrofit work, the change affects your numbers. Networked lighting controls dropped from $0.35/kWh to $0.30/kWh. Most lighting measures now run through the Instant Discounts program rather than Retrofit. Applications submitted before June 30 are still honoured at the old rates. This guide is written for the person preparing the quote, not the building owner claiming the rebate. It covers which program applies to your job, what the Custom stream actually pays, and how to put a rebate figure in a proposal without promising something the program has not approved.
Instant Discounts or Retrofit: which one applies to your job
Standard LED lamp or fixture swaps run through Instant Discounts, a point-of-sale discount with no application. Networked controls or complex scope projects run through Retrofit Custom, paying $1,800 per kW or $0.20 per kWh, whichever is higher, up to 50% of eligible cost, with mandatory pre-approval. Small businesses with 50 or fewer employees can use the Small Business Program instead, up to $3,000 lighting plus $2,500 non-lighting direct install, with a free on-site assessment.
What changed June 30, 2026
The IESO moved most lighting measures from Retrofit into Instant Discounts, and cut the Network Lighting Controls incentive from $0.35 to $0.30 per kWh, about a 15 percent reduction. Applications submitted before June 30, 2026 keep the older rates.
Retrofit Custom stream numbers
$1,800 per kW or $0.20 per kWh, whichever is higher. Capped at 50% of eligible project cost. Minimum incentive $500. Pre-approval required before work starts. Program updates land every spring and fall, next update Fall 2026.
Networked lighting controls after the change
The Network Lighting Controls incentive is now $0.30 per kWh, down from $0.35. Controls savings are calculated separately from the base LED case.
The Small Business Program
Up to $3,000 lighting incentive plus $2,500 non-lighting direct install, for a combined maximum of $5,500, for businesses with 50 or fewer employees. Includes a free on-site assessment.
How to put a rebate in a proposal without overpromising
Eligibility depends on the program, building location, product qualification, timing, and IESO approval, so rebate figures in a proposal should be labeled as estimates, not guarantees.
Frequently asked questions
Did Save on Energy lighting incentives change in 2026?
Yes. Effective June 30, 2026, the IESO moved most lighting measures into Instant Discounts and cut the Network Lighting Controls incentive from $0.35 to $0.30 per kWh.
Is lighting still covered under the Retrofit program?
Yes, for larger or more complex projects, under the Retrofit Custom stream, paying $1,800 per kW or $0.20 per kWh, up to 50% of eligible cost, with a $500 minimum and mandatory pre-approval.
What is the incentive for networked lighting controls now?
$0.30 per kWh, down from $0.35 per kWh, effective June 30, 2026.
Do I need pre-approval before installing?
Yes, for the Retrofit Custom stream. Instant Discounts are applied at the point of sale and do not require pre-approval.
Can I show the rebate amount in my customer proposal?
Yes, labeled as an estimate, since eligibility depends on program, location, product qualification, timing, and IESO approval.