Ontario’s Conservation and Demand Management (CDM) programs have been instrumental in conserving a vast amount of demand for electricity and other sources of energy since their inception. The idea behind the programs is simple: it costs less to save energy than it costs to supply that same amount of energy.

The Ministry of Energy estimates that for every dollar invested in energy efficiency, Ontario has avoided about two dollars in costs to the electricity system. Between 2006 and 2011, investing two billion dollars in conservation enabled Ontario to avoid more than four billion in new supply costs.

The Ministry of Energy’s Conservation First directive has driven the Ontario Power Authority (OPA) to implement more aggressive conservation programs to further reduce demand. And at the beginning of 2015, the OPA (now merged with the Independent Electricity System Operator) has begun implementing a new six-year conservation framework.

saveONenergy 2015-2020

While the 2011-2014 programs have had considerable success, OPA realizes that it needs to adapt to the changing needs of consumers and make it easier for businesses to participate in conservation programs. With subsequent expectation of program changes and the manner in which they will be applied for 2015 to 2020, new program details have yet to be published and local distribution companies (LDCs) have yet to implement them.

For now, the 2011-2014 program will continue until the new platform takes effect; i.e. projects can apply under the 2011-14 incentive rules up until the new program launch date.

Although 2015 falls under the new Conservation First directive, it can be classified as a transition year. Projects applying under the 2011 to 2014 rules must be completed by 2015, but when the 2015 to 2020 program launches, projects will apply under these new rules.

New CDM programs also bring more flexibility and smoother, fast administration of the incentives. Under the previous program, the OPA controlled all distribution of the funds. Under new programs, a big portion of the incentive funds will go directly to the LDCs, resulting in a faster reimbursement of incentives to the participants.

A structure for calculating 2015-2020 rebates will likely focus on conservation as much as it has on efficiency. That is, under the previous program, participants were encouraged to install energy-efficient equipment, such as LED lights and more efficient HVAC systems.

Now it would also encourage installing automation controls, such as motion sensors for lights and smart thermostats, so energy is used only when it is needed. This will further reduce load on the grid, save dollars for Ontario businesses and help the environment.

saveONenergy 2011-2014

Since 2011, OPA has provided handsome incentives to businesses across Ontario to implement energy efficient measures. This has encouraged many businesses to replace obsolete, inefficient equipment with more energy-efficient equipment and implement other conservation measures.

Currently, there are mainly three ways a business can receive those incentives by applying through LDC’s. This application can be filed by the business itself or through an Applicant Representative (AR). Below are the three paths for incentive applications:

Prescriptive

Rebates are paid per unit of equipment. For example, for a lighting retrofit a common type of spotlight may receive $14 or $20 per lamp depending on the specifications. For quality and efficiency purposes, equipment must have certifications such as Energy Star and/or DLC.

Engineered

Rebates under the engineered track are calculated based on the energy savings.

• For lighting, the participant is paid the greater of either $400 per kilowatts (kW) of demand savings or $0.05 per kilowatt hour (kWh) of first year electricity savings, up to a maximum of 50 per cent of the project cost. Equipment is required to be Energy Star or DLC qualified to be eligible.
• For non-lighting, including lighting controls, the participant is paid the greater of either $800/kW or $0.10/kWh of first year electricity savings.

Custom

Rebates under custom track work much like engineered tract but there is more flexibility with project specifications. This allows participants to devise creative ways to save energy and benefit from the program.

Under the current program, incentives are applied though the LDC which forwards the applications to IESO. The IESO releases the funds to LDC upon completion of the project, which are then forwarded to the participating business. There are several measurements, verifications and inspection processes involved before the incentives are finally received by the participant. The process can take anywhere between a few weeks to several months, depending on the size and complexity of the retrofit project.

As demand for energy grows across Ontario, the success of these programs will be key to seizing that demand. But this is a win-win situation for both government and consumer. By investing in conservation programs, the government will avoid having to build costly and gas-fired or nuclear plants, while consumers will enjoy lower energy bills. We leave a better environment for future generations as an added benefit.

Onkar Gill is a LED lighting consultant based in Mississauga. He works with established LED manufacturers across the GTA to provide energy efficient LED solutions to businesses in Ontario. He is a registered Applicant Representative to work on saveONenergy incentive applications. Onkar can be reached at 647-338-4560 or via email gillonkar@gmail.com.