Save on Energy XLerate Program
The Save on Energy XLerate Program is a streamlined, pay-for-performance initiative that provides organizations across Ontario in the industrial, municipal, institutional, and healthcare sectors with a simplified approach to undertaking large-scale energy-efficiency projects. This program is supported by the Ontario government.
Offered by Independent Electricity System Operator
Amount
Project incentives: $300/MWh of verified first-year electricity savings, up to 75% of eligible project costs, to a maximum of $15 million per project; Project Feasibility Study (PFS): 50% of eligible study costs, up to the lesser of $100,000 or 10% of the project's estimated eligible costs
Quick eligibility check
Who can apply
Participants must be located in Ontario and must be:
- Owners and/or operators of a non-residential facility, or
- Third-party applicants with the authority to implement a project at a non-residential facility
Projects must:
- Involve an energy-efficiency improvement applied to, or in support of, an industrial process.
- Propose a minimum electricity savings of 600 MWh per year.
- Use technology that is commercially available and not excluded by the program eligibility rules.
- Be completed within five years of the execution date of the Participant Agreement.
- An application for PFS or project funding must be submitted prior to entering into any binding purchase commitment (e.g. issuing a purchase order).
- Distinct projects at individual facilities may not be aggregated to meet the 600MWh threshold.
Who can't apply
- Lighting; Generation (except eligible Waste Energy Recovery); Energy Storage unless part of a net-efficiency configuration; Fuel switching (unless approved by IESO); Electricity distribution infrastructure-related measures (i.e. projects associated with an LDC’s own system assets).
About the funding
The Project Incentive equals the minimum of: a) 75% of Eligible Costs minus any Third Party Contribution; b) Electricity Savings × rate ($300/MWh), capped at 120% of the Approved Amount; c) the amount needed to achieve a 1-year Project Payback; and d) $15,000,000 per Project. Incentives are paid in two stages and tied to verified results: PFS funding is paid following acceptance of the PFS Report by the IESO; Project incentives following approval of Q1 and Y1 M&V Reports, provided performance thresholds are met. Participants must achieve at least 50% of anticipated savings to be eligible for payment. Third-Party Participants are not eligible for PFS funding.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Forest Sector Investment and Innovation Program (FSIIP) – Business Projects | Loan, Grant | Performance-based loan of up to a maximum of 30% of eligible project costs (forgivable portion to a maximum of 50% of the loan amount) | Open |
| Save on Energy – Retrofit Program | Grant | Up to 50% of eligible project costs | Open |
| Affordable Multi-Family Housing Program | Grant, In-Kind Support | Energy assessments: up to $8,000 per building, to a maximum of $40,000 per housing provider per year | Open |
| Enbridge Gas Equipment Upgrades: Fixed Incentive Program: Air Curtain, Condensing Make-up Air (MUA), & Dock Door Seal | Grant, Rebate | Air curtains $200 to $6,000 per door | Open |
