Incentives · Ontario
Ontario lighting incentives: how Save on Energy works for commercial LED projects
Incentives can cover a real share of a lighting retrofit, but only if the paperwork happens before the purchase. The order of steps matters more than the rate.
Short answer
Ontario’s Save on Energy programs, run by the IESO, fund commercial lighting upgrades in two main ways. The Retrofit program pays incentives for eligible projects, up to 50% of eligible project costs, through a prescriptive list or a custom stream based on verified savings; projects need pre-approval before installation. Instant Discounts take money off eligible LED products and controls at the counter through participating distributors. Check eligibility, product lists and current rates before you buy.
Key takeaways
- Apply and get pre-approval before buying or installing under the Retrofit program.
- Prescriptive incentives use set amounts; custom incentives are based on verified savings.
- Instant Discounts are applied at the point of sale by participating distributors.
- Product eligibility usually depends on qualified lists (often DLC); check each model.
- Program rules changed in 2026; confirm current rates before budgeting.
Two programs, two different processes
| Retrofit program | Instant Discounts | |
|---|---|---|
| For | Existing commercial, industrial, institutional, multi-residential and agricultural buildings | Same building types, buying through participating distributors |
| How it pays | Incentive paid after the project, based on prescriptive amounts or verified savings | Discount taken off the price at purchase |
| Pre-approval | Required before installation | Not required; distributor checks eligibility |
| Cap | Up to 50% of eligible project costs | Per-unit amounts by product type |
| Best for | Planned projects, larger scopes, controls | Quick replacements and smaller scopes |
The Retrofit program, step by step
- Check eligibility of the building and the applicant. Lessees need the owner’s authorization.
- Choose the stream. Prescriptive covers common upgrades with set incentives from a list. Custom covers unique projects, with incentives calculated from verified energy (kWh) or peak demand (kW) savings.
- Submit the pre-project application with product details and the existing equipment.
- Wait for pre-approval. Do not install before it.
- Install the approved scope. Keep invoices, product lists and photos.
- Submit the post-project documents and receive payment.
The most expensive mistake is step 4: installing before approval usually means no incentive.
Instant Discounts
For existing buildings, eligible LED tubes, fixtures, downlights and lighting controls can be bought with a discount applied at the counter by participating distributors. The distributor confirms that the buyer is eligible. Amounts vary by product type and by distributor, and qualified product lists can change without notice.
What makes a product eligible
Most lighting measures depend on the product being on a qualified list, typically the DLC Qualified Products List for commercial LED fixtures. Check the exact model and configuration. See DLC listing explained.
Lighting controls
Controls often save as much energy as the LED upgrade itself. Network lighting controls are an eligible Retrofit measure, and controls also help meet energy-code requirements on larger renovations. See lighting controls in Canadian energy codes.
Rules change: confirm before you budget
Save on Energy updated the Retrofit program in 2026, with changes in effect from June 30, 2026. Confirm current rates on the program site, and note the date on any incentive estimate you give to an owner.
How SuppLux helps
Check each product against the program’s qualified list before you buy. Send the fixture schedule and SuppLux’s AI matches every line to verified products, with the best alternative shown first, then turns the matched set into a quote and submittal package. See fluorescent-to-LED retrofits or send a schedule.
Frequently asked questions
Who is eligible for Save on Energy lighting incentives?
Owners or lessees (with owner authorization) of commercial, industrial, institutional, municipal, multi-residential and agricultural facilities in Ontario, for eligible projects. Check the program terms for your building.
Do I need approval before buying lighting?
Under the Retrofit program, yes: submit the pre-project application and receive pre-approval before installation. Instant Discounts work differently: the discount is taken at purchase from a participating distributor.
Are network lighting controls eligible?
Network lighting controls are an eligible Retrofit measure. Rates were revised in 2026, so check the current rate on the program site before you estimate.
Can new construction use these programs?
The Retrofit and Instant Discounts programs are for existing buildings. For new construction, check Save on Energy for the offers that apply.
References
Keep reading
- Compliance · Incentives DLC listing for commercial LED fixtures: when it matters and how to check What DLC listing means for commercial LED fixtures, why most utility rebate programs require it, the difference between DLC Standard and Premium, and how to check a product on the Qualified Products List before ordering. →
- Retrofit · Fluorescent phase-out Replacing fluorescent linear fixtures: LED tubes, retrofit kits or new luminaires? With Canada phasing out most fluorescent lamps, commercial buildings need a plan for their linear fluorescent fixtures. A comparison of LED tubes, retrofit kits and new LED luminaires on cost, labour, light quality, controls, incentives and certification. →
- Controls · Energy codes Lighting controls in Canadian energy codes: what the package must include Commercial lighting in Canada must meet the energy code that applies to the project: the NECB, or in Ontario SB-10 of the Building Code, which references ASHRAE 90.1 and the NECB. What controls are typically required and what to check in the lighting package. →
- Solutions · Procurement SuppLux for corporate and multi-site procurement teams Procurement teams use SuppLux to standardize lighting fixtures and pricing across sites, compare alternates on equal terms, and track orders from purchase to delivery, with one supplier record for every project in Canada. →