Ontario residents will see changes this Fall in how electricity is billed and how much support is available through the Ontario Electricity Rebate and other provincial programs. With new time-of-use schedules, updated tier thresholds, and upcoming home energy rebates, households and small businesses have several ways to manage their hydro bills in 2026.
Ontario Electricity Rebate: What It Covers
The Ontario Electricity Rebate (OER) is a pre-tax credit automatically applied to most residential, small business, and farm electricity bills. It reduces the subtotal before HST is added, helping lower monthly costs. While rebate percentages can change each year, the credit remains one of the most direct ways the province reduces household energy costs.
New Electricity Pricing Periods in Ontario
The Ontario Energy Board (OEB) sets electricity prices each year starting November 1. For customers on the time-of-use plan, cheaper usage hours will shift as the winter period begins:
- Off-peak (lowest rate): 7 p.m. to 7 a.m. (weekdays), all day on weekends and holidays
- Mid-peak: 11 a.m. to 5 p.m.
- On-peak (highest rate): 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.
For households on the tiered plan, the winter threshold increases to 1,000 kWh per month (compared to 600 kWh in summer), allowing more electricity to be used at the lower price.
Calculate Your 2026 COLA Increase →The ultra-low overnight plan remains unchanged, with discounted rates available all year for those who shift usage to overnight hours.
New Ontario Electricity Rates in 2026
Updated rates per kilowatt-hour (¢/kWh) will also take effect this Fall. These rates are reviewed annually by the OEB under the Regulated Price Plan. Delivery charges, regulatory fees, and the Ontario Electricity Rebate will continue to influence final bills.
Last year, some customers saw a drop in rates, but this was partly offset by a reduction in the Ontario Electricity Rebate percentage. For 2026, the exact rate changes will be confirmed by mid-October.
Ontario Home Renovation Savings Program
Beyond the Ontario Electricity Rebate, the province is investing $10.9 billion over 12 years into energy efficiency. The Home Renovation Savings Program, launching January 28, 2026, offers rebates covering up to 30% of costs for upgrades such as:
- New windows and doors
- Home insulation and air sealing
- Smart thermostats
- Heat pumps
- Rooftop solar panels and battery storage
Later in 2026, the program will expand to include rebates on energy-efficient appliances like refrigerators and freezers.
Small Business Energy Rebates
Ontario is also expanding the Peak Perks program to support small businesses. Convenience stores, restaurants, and other eligible businesses will receive:
- A $75 enrollment incentive
- $20 per year for each smart thermostat connected to a central air conditioning system or heat pump
Ontario’s population growth, electric vehicle adoption, and increased industrial demand are expected to raise electricity use by 75% by 2050. By combining the Ontario Electricity Rebate, updated pricing options, and expanded energy efficiency programs, the province aims to reduce peak demand and keep bills affordable for households and businesses.
