Energy Efficiency Business Grants: 43 Programs You Can Apply for Today

If you’re looking for all energy efficiency grants for business in one place, we’ve got you covered!

Becoming more energy efficient has two positive outcomes: it decreases your costs over time, and it helps fight climate change. While fighting climate change might be contentious, we can all agree we all want to save money!

With that in mind, investing in energy efficiency is something worth considering for your business. Quite often it does call for some upfront costs, but in the end, it pays for itself—and quite quickly in many cases—and then pays for itself over and over after enough time passes. It’s an important long-term strategy. So, the question is, how do you come up with that initial investment to improve your company’s energy efficiency? Well, look no further! These 43 incentives should get you started!

What Can Energy Efficiency Business Grants Be Used For?

Energy efficiency business grants can be used to pay for many aspects of starting or running a business. Here are some of the uses that are covered by programs in our grants database:

  • For your businesses’ retrofitting projects that deliver energy savings
  • For making capital improvement projects that will help save energy
  • Implementing high-efficiency equipment for your business
  • Building high-performance, resilient and sustainable buildings
  • Taking advantage of energy-saving technologies

And that’s just a sample! See the section below with a complete list of energy efficiency grants available.

How Much Energy Efficiency Grant Money Can I Get for My Business?

In our database we currently have grants ranging from $500 to $25,000,000.

Am I Eligible for an Energy Efficiency Business Grant? Common Eligibility Criteria

Two of the most common questions we get asked at Ontario Business Grants are “Am I eligible?” and “How do I qualify?”.

We analyzed the energy efficiency business grants in our grants database, and these are the most common qualifications we identified:

  • Be businesses focusing on renewable and alternative energy
  • Be companies using energy-efficient equipment
  • Be businesses using natural gas for key equipment and processes
  • Have demonstrated environmental and economic benefits for Canadians
  • Be industrial or commercial businesses, registered and incorporated in Canada

Note: these are just the most common eligibility criteria – there are many grants with different requirements.

Energy Efficiency Grants for Ontario: Current Grants Available

In the table below we list the energy efficiency grants currently available to Ontario businesses.

To learn more about each program, just click the program name and you’ll be taken to a web page that provides detailed information on the program, including eligibility, the dollar amount of the program, and how to apply for the grant:

Energy Efficiency Grants for Ontario Businesses

Name of ProgramAmountType
Environment and Climate Change Canada Climate Action Incentive Fund: Small- and Medium-sized Enterprises Project Stream$250000Grant
Enbridge Gas – Building Automation: Affordable Multi-Family Housing Program, Commercial Custom Retrofit Program, and Industrial Custom Engineering Program$200000Grant, In-Kind Support
Enbridge Gas – Audits, Studies & Assessments: Affordable Multi-Family Housing Program$40000Grant, In-Kind Support
Enbridge Gas – Audits, Studies & Assessments: Industrial Studies & Assessments$10000Grant
Enbridge Gas – Audits, Studies & Assessments: Commercial Custom Audits & Studies$5000Grant, In-Kind Support
Enbridge Gas - Retrofits & Custom Projects: Affordable Multi-Family Housing Program, Commercial Custom Retrofit Program, and Industrial Custom Engineering Program$200000Grant, In-Kind Support
Enbridge Gas - New Construction: Affordable Multi-Family Housing New Construction$200000Grant
Enbridge Gas - New Construction: Savings by Design Commercial & Multi-Residential$30000Grant
Enbridge Gas – Boilers: Affordable Multi-Family Housing Program, Commercial Custom Retrofit Program, and Industrial Custom Engineering Program$100000Grant, In-Kind Support
Independent Electricity System Operator (IESO) - Grid Innovation FundN/AGrant
Environment and Climate Change Canada – Output-Based Pricing System Proceeds Fund: Decarbonization Incentive Program$500000Grant
EPCOR Electricity Distribution Ontario – Electric Vehicle Charging Station Funding Program$100000Grant
Save on Energy - Training and Support for BusinessesN/AGrant
Save on Energy - Industrial Energy Efficiency Program (IEEP)$5000000 Grant
Enbridge Gas - New Construction: Savings by Design Residential$100000Grant
Enbridge Gas - Equipment Upgrades: Multi-Unit Residential In-Suite Fixed Incentive Program$50000Grant
Enbridge Gas - Equipment Upgrades: Affordable Multi-Family Housing Program$200000Grant, In-Kind Support
Enbridge Gas - Equipment Upgrades: Fixed Incentive Program: Air Curtain, Condensing Make-up Air, & Dock Door Seal$100000Grant
City of Toronto - Corporate Tree Planting Incentiveno fixed amountGrant
Save On Energy – Energy Performance ProgramN/AGrant
Agriculture and Agri-Food Canada – Supply Management Processing Investment Fund$5000000Grant
Infrastructure Canada - Zero Emission Transit Fund: Planning Projects and Capital Projectsno fixed amountGrant, Loan
Save on Energy - Small Business Program $2500 Grant
City of Windsor - Development Charges Grant Programno fixed amountGrant
City of Windsor - Small Business Investment Grant Programno fixed amountGrant
City of Windsor - Business Retention and Expansion Grant Programno fixed amountGrant
City of Windsor - Business Development Grant Programno fixed amountGrant
City of Toronto – Eco-Roof Incentive Program: Cool RoofsNo Fixed AmountGrant
City of Toronto – Eco-Roof Incentive Program: Green Roof Structural Assessment Grant (SAG)$1000.00Grant
City of Toronto – Eco-Roof Incentive Program: Green Roofs$100000.00Grant
Energy Manager Program – Save On Energy (2022)$150000Grant
Independent Electricity System Operator (IESO) - Save on Energy – Retrofit ProgramNo Fixed AmountGrant
Government of Canada, Natural Resources Canada (NRCan) – Smart Renewables and Electrification Pathways (SREPs) Program: Capacity Building Stream$ 5000000.00Grant
Government of Canada, Natural Resources Canada (NRCan) – Smart Renewables and Electrification Pathways (SREPs) Program$25000000Grant
FedDev Ontario – Aerospace Regional Recovery Initiative (ARRI)No Fixed AmountGrant & Loan

Other Types of Energy Efficiency Funding for Ontario Businesses

Our goal is for this guide to be a complete source of energy efficiency funding information for businesses. So, in this section you’ll find all the other energy efficiency money programs (besides grants) that are available to entrepreneurs:

  • Energy Efficiency Loans for Ontario Businesses

A loan might not sound as good as a grant, but many energy efficiency loans for businesses have a low interest rate. While they might not be free money, if you don’t qualify for a grant, a low-interest loan is probably the next best thing.

The programs below include non-profit loans:

Energy Efficiency Loans for Ontario Businesses

  • Commercial Energy Efficiency Loans for Ontario Businesses

If you’re not eligible for a government loan, you might consider one of the commercial loans available for Ontario entrepreneurs. Below is a sample of current loan programs offered by Vancity Community Investment Bank, Canada’s only values-based Schedule 1 bank, which is exclusively focused on partnerships with organizations that drive social, economic, and environmental change.

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    • Energy Efficiency Tax Credits for Ontario Businesses

    A tax credit reduces the tax that a business pays on its taxable income.

     There is an energy efficiency tax credit available for Ontario businesses:

    Energy Efficiency Tax Credit for Ontario Businesses

    Name of ProgramAmountType
    Canada Revenue Agency (CRA) Full Expensing for Clean Energy Investmentsno fixed amountTax Credit
    • Energy Efficiency Rebates for Ontario Businesses

    A rebate is a partial refund made to a business by a government, utility company, etc. Common rebates include tax rebates, energy rebates, etc.

    In the table below you’ll find the energy efficiency rebates currently available for Ontario businesses:

    Energy Efficiency Rebates for Ontario Businesses

    • In-Kind Support for Energy Efficiency

    In-kind support for businesses typically involves services that are provided at no charge (usually to start-ups) and are often provided by non-profit and government-affiliated organizations.

    In-kind support includes services ranging from free office space to mentorship to networking and introductions to potential investors. 

    In the table below you’ll find some in-kind support programs currently available:

    In-Kind Energy Efficiency Support for Ontario Businesses

    Best Energy Efficiency Business Grants, Loans & More

    While there are lots of good programs available, below we highlight some of the best energy efficiency grants, loans, tax credits & more for Ontario businesses:

    Best Government Energy Efficiency Grants

    Environment and Climate Change Canada (ECCC) – Climate Action Incentive Fund: Small- and Medium-sized Enterprises Project stream

    The Climate Action Incentive Fund (CAIF) SME Project stream provides support to small- and medium-sized enterprises (SMEs) for retrofit projects in sectors such as Building, Transportation, Industry, Waste, Agriculture, and more.

    The CAIF program is available to applicants operating in the provinces of Saskatchewan, Manitoba, Ontario, and New Brunswick.

    Environment and Climate Change Canada (ECCC) – Output-Based Pricing System Proceeds Fund: Decarbonization Incentive Program (DIP)

    ECC’s Output-Based Pricing System Proceeds Fund: Decarbonization Incentive Program (DIP) provides incentives to Canada’s industrial sectors’ single or multi-year projects accelerating the deployment of commercially available and/or proven low-carbon technologies and processes that will further reduce GHG emissions.

    Infrastructure Canada and Canada Infrastructure Bank (CIB) – Zero Emission Transit Fund (ZETF): Planning Projects and Capital Projects

    The Zero Emission Transit Fund provides contributions to public transit and school bus operators across Canada who are electrifying their fleets. ZETF supports planning and capital projects that will reduce the barriers to procuring zero emission transit and school buses in Canada.

    Natural Resources Canada (NRCan) – Clean Energy in Indigenous, Rural and Remote Communities

    The Clean Energy for Rural and Remote Communities (CERRC) program provides funding for renewable energy and capacity building projects and related energy efficiency measures in Indigenous, rural and remote communities across Canada.

    The program has the following areas of focus:

    • Indigenous, rural and remote areas that use fossil fuels for heat or power, including Northern and Arctic regions and industrial sites;
    • Prioritize Indigenous-owned or led projects, or projects with community partnerships;
    • Support for all project stages and a variety of technology types.
    Sustainable Development Technology Canada (SDTC) – Seed Fund

    The Seed Fund supports promising early-stage Canadian cleantech entrepreneurs with one-time grants of $50,000 to $100,000 for innovative technological projects with environmental benefits.

    Independent Electricity System Operator (IESO) – Save on Energy – Retrofit Program

    Get even more money to make your business more energy efficient and save you money with this program from IESO’s Save on Energy.

    This one has 2 options: the prescriptive track and the comprehensive track. The prescriptive is your best bet for quick projects and upgrades such as improved lighting, though the minimum incentive amount is $500. The comprehensive track is a better fit for larger, more comprehensive projects with lots of components. This one will get you an incentive of up to 50% of project costs.

    Chances are you qualify since most buildings are eligible: commercial, industrial, food services, agricultural, and more.

    Independent Electricity System Operator (IESO) – Save on Energy – Energy Performance Program

    Sign up to continually improve your energy usage and you could be rewarded for it with this program.

    As long as you’re not an industrial or manufacturing business, you could receive a pay-for-performance financial incentive, plus a modelling incentive of $1,500 for each enrolled building, up to a maximum of $15,000 for 10 approved buildings.

    You get to choose which improvements and investments to make to achieve your improved energy efficiency, and your payments end up equal to 20% of the annual baseline electricity consumption of your building(s).

    Independent Electricity System Operator (IESO) – Save on Energy – Small Business Program

    The Save on Energy Small Business program is designed to help small businesses across Ontario make equipment improvements to reduce their energy consumption, at no cost. Leveraging the success of the former Small Business Lighting program, this new and improved program offers small businesses direct-install incentives on an expanded range of equipment – both lighting and non-lighting.

    Independent Electricity System Operator (IESO) – Save on Energy – Industrial Energy Efficiency Program (IEEP)

    IESO’s Save on Energy Industrial Energy Efficiency Program (IEEP) supports industrial customers across Ontario in improving their industrial processes and implementing system optimization projects. The program offers organizations up to $5 million in financial incentives for each large, complex industrial energy-efficiency project accepted into the program.

    Best Energy Efficiency Tax Credit

    Canada Revenue Agency – Full Expensing for Clean Energy Investments

    The Full Expensing for Clean Energy Investments allows businesses to immediately write off the full cost of specified clean energy equipment, subject to the Capital Cost Allowance (CCA) rules.

    Best Energy Efficiency Rebates

    City of Toronto – Capacity Buyback Program

    Saving money anywhere you can is important nowadays, so don’t overlook your water usage as a source of savings.

    This program from the City of Toronto offers a free water audit to help you find ways to save water in your building(s) and gives you a one-time rebate of 30 cents/L of water saved on an average day.

    Ontario Energy Board – Net Metering Program

    The Net Metering program provides an opportunity for customers to generate their own renewable electricity while sending excess power to the grid for a credit. This can be availed from the electricity retailers.

    Best Utility Energy Efficiency Grants

    Enbridge Gas – Audits, Studies & Assessments: Commercial Custom Audits & Studies

    The Commercial Custom Audits & Studies program is designed to uncover energy-efficiency potential with an energy audit. An energy audit can be a blueprint to identify and quantify potential energy-saving measures on key systems and equipment. This program will provide incentives to offset the cost, and expert help to map out a plan to achieve ongoing savings, year after year.

    Enbridge Gas – Audits, Studies & Assessments: Industrial Studies & Assessments

    The Industrial Studies & Assessments program is offered to customers that uncover energy-saving opportunities in their facilities. From equipment and processes to complex systems, evaluating the facility’s energy performance can help determine the financial benefits of investing in energy-efficient improvements.

    Best Non-profit Energy Efficiency Loan

    VERGE Capital – Breakthrough Fund

    The VERGE Breakthrough Fund is Southwestern Ontario’s first impact investing fund providing growth capital to social and environmental enterprises.

    Focus is on established social enterprises and larger-scale community infrastructure (e.g. green energy projects, affordable housing developments, innovation and entrepreneurship hubs).

    The Bottom Line

    Doesn’t improving your company’s energy efficiency seem more realistic and attainable now?

    Spending money out of pocket is never fun, but when you start taking advantage of these funding programs—and layering them up—the amount you’ll spend becomes smaller and smaller.

    Eventually, you’ll see your energy bills shrink too, and one day, your initial investment in your energy efficiency will have paid for itself, increasing your profitability.

    And on top of it all, you’ll have the pleasure of knowing you did your part for the environment, even if that wasn’t your priority!

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