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.
Program update, effective June 30, 2026
The IESO cut the Network Lighting Controls incentive by about 15 percent, from $0.35/kWh to $0.30/kWh. Applications submitted before June 30, 2026 are honoured at the older rates. Separately, and much earlier, most standard lighting measures moved from Retrofit to Instant Discounts back in December 2023.
Last verified: August 2026
Start here
Instant Discounts or Retrofit: which one applies to your job.
This is the single most useful thing to get right before you price a job. Most standard LED swaps now run through a different program than they did a year ago, and pricing it under the wrong one either overstates or understates the customer's net cost.
If your project is · Program · What it means for the quote
Standard LED lamp or fixture swap Instant Discounts Discount applied at the distributor since December 2023. Show net-of-discount pricing directly in the proposal, not a separate rebate line. You cannot claim both this and Retrofit on the same project.
Network lighting controls, horticultural lighting, or complex scope Retrofit These are the lighting measures still incented through Retrofit. Custom stream pays $1,800/kW or $0.20/kWh, whichever is higher, up to 50% of eligible cost.
Small business, 50 or fewer employees Small Business Program Up to $3,000 lighting plus $2,500 non-lighting direct install, with a free on-site assessment included.
Retrofit Custom stream
The numbers behind the Custom stream.
$1,800/kW
Or $0.20 per kWh, whichever is higher. This is the base calculation IESO uses for Custom stream lighting projects, before the 50 percent cost cap is applied.
50%
Maximum share of eligible project cost the incentive can cover. A project's incentive is capped here even if the per-kW or per-kWh math would pay out more.
$80,000
Incentive level at or above which a Measurement and Verification report is required for Custom stream applications. Prescriptive-only applications don't require M&V, though they may still face QA/QC.
Apply first
You must submit the application and accept the Participant Agreement before entering a binding commitment, meaning before a purchase order, signed contract, or equipment order. You can start work after submitting, but doing so before pre-approval risks a lower or denied incentive.
Controls, priced separately
Networked lighting controls after the June 30 change.
$0.35/kWh
$0.30/kWh
The Network Lighting Controls incentive dropped roughly 15 percent effective June 30, 2026. Controls still improve total project savings and still stack on top of the base LED case, but the math moved. Price controls as their own line, separate from the LED-only case, so the customer can see exactly what the controls layer adds and what it costs, rather than one blended number that quietly assumes it.
Alternate path
The Small Business Program.
Useful mainly so you know when a job is not priced through Retrofit or Instant Discounts at all.
$3,000
Maximum lighting incentive for eligible small businesses with 50 or fewer employees.
$2,500
Additional non-lighting direct-install incentive available on the same program, for a combined maximum of $5,500.
Free
On-site assessment included as part of the program, ahead of any installation commitment.
How to put a rebate in a proposal without overpromising.
Eligibility depends on the program, the building's location, product qualification, timing, and IESO approval. None of that is guaranteed at the moment you write the quote. The honest way to handle it is to label every rebate figure as an estimate, note which program it assumes, and flag the assumption clearly rather than folding it into a single final number the customer can't unwind. LumaQuote tracks rebate assumptions and program notes per project and marks every incentive line as an estimate in the exported PDF and Word proposal, so the number is useful without being a promise you can't keep.
Before you send the quote
Quoting checklist for a Save on Energy lighting job.
1
Confirm the building type is eligible: commercial, industrial, institutional, multi-residential, or agricultural.
2
Confirm the product is on the qualified list for whichever program you're pricing under.
3
Confirm which program applies: Instant Discounts or Retrofit Custom, not both.
4
Submit the Retrofit application before any binding commitment: no purchase order, signed contract, or equipment order first.
5
Capture existing wattage, fixture quantity, and operating hours accurately at the audit.
6
Document the proposed fixture and confirm it qualifies before you price it.
7
Note whether controls are included, and price them as a separate line from the LED base case.
8
Label every rebate figure in the proposal as an estimate, not a guarantee.
9
Note the application date against the June 30, 2026 program update date.
10
Don't claim both Retrofit and Instant Discounts on the same project. Customers must choose one or the other.
Build a Save on Energy ready proposal in LumaQuote.
Canada and US utility rates built in, rebate assumptions tracked per project, and a PDF or Word proposal out the other end.
FAQ
Save on Energy lighting incentives: common questions.
Did Save on Energy lighting incentives change in 2026?
Yes. Effective June 30, 2026, the IESO moved most standard lighting measures out of the Retrofit program and into the Instant Discounts Program, and reduced the Network Lighting Controls incentive from $0.35 per kWh to $0.30 per kWh, a cut of about 15 percent. Applications submitted before June 30, 2026 are honoured at the older rates.
Is lighting still covered under the Retrofit program?
Only certain measures. Network lighting controls, horticultural lighting, and horticultural advanced lighting controls remain in the Retrofit program. The Retrofit program stopped accepting new applications for most other lighting measures after December 17, 2023, when those incentives moved to the Instant Discounts program. The Custom stream pays $1,800 per kW or $0.20 per kWh, whichever is higher, up to 50 percent of eligible project costs. You cannot claim both Retrofit and Instant Discounts on the same project.
What is the incentive for networked lighting controls now?
$0.30 per kWh, down from $0.35 per kWh, effective June 30, 2026. Controls incentives are calculated separately from the base LED fixture savings under the Retrofit Custom stream, so price them as their own line in the proposal.
Do I need pre-approval before installing?
You must submit a Retrofit application and accept the Participant Agreement before entering into a binding commitment, which includes issuing a purchase order, signing a contract, or ordering equipment. You can technically begin work after submitting but before pre-approval, though the IESO notes this risks a lower incentive or a denied application. There is no grace period for projects that already started. Instant Discounts are applied at the point of sale and require no application.
Can I show the rebate amount in my customer proposal?
Yes, but label it as an estimate. Eligibility depends on the program, building location, product qualification, timing, and IESO approval. LumaQuote tracks rebate assumptions and program notes and flags every incentive figure in the exported proposal as an estimate, not a guarantee.
⚡ LumaQuote
Quote the Ontario job with the current rules.
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More rebate guides: BC Hydro · Con Edison (NY) · National Grid (MA) · National Grid (NY)