Crucial Solar Rebate Updates:

Save On Energy Program 2026 Update

The Independent Electricity System Operator (IESO) has officially announced its Spring semi-annual changes for its flagship efficiency portfolio. These save on energy program 2026 updates are designed to reflect changing market conditions, adjust to high program participation, and align provincial spending with peak demand savings objectives.

For commercial, industrial, and agricultural operations looking to invest in solar infrastructure, these updates introduce critical structural changes and a strict deadline to lock in higher incentive rates.

At Otter Energy, we closely monitor these programmatic shifts so your business can maximize its return on investment. Here is how the latest save on energy program 2026 updates affect your upcoming solar projects.

Act Before June 30: 

10% Incentive Reduction for Solar DERs

To ensure program cost-effectiveness for ratepayers, a rate reduction is being implemented at the end of this month.

• The Change: Financial incentives for Small-to-Medium Generation Solar DERs (>10kW) will be reduced by 10%. The rebate rate will drop from $860/kW down to $770/kW-AC nameplate capacity.
• The Deadline: This reduction officially takes effect on June 30, 2026.

How to Protect Your Rebate: Applications containing solar measures submitted before June 30, 2026, will be fully honored at the original, higher $860/kW rate. Applicants must ensure they submit a complete application to secure this pricing.

Immediate Structural & Worksheet Shifts 

(Effective May 29, 2026)

In addition to the upcoming June rate reduction, the initial phase of the save on energy program 2026 updates went into effect late last month, bringing immediate changes to solar eligibility and application accuracy:

• Wall-Mounted Solar Exclusion: Eligibility for wall-mounted Solar DERs (Distributed Energy Resources) has been officially removed from the Retrofit Program.
• New Application Requirements: The Solar DER calculation worksheet has been updated to improve usability and data accuracy for savings assumptions. Applicants can no longer select the closest approximate tilt angle from a dropdown menu; instead, you are now required to enter the exact tilt angle of the system.

Looking Ahead

These adjustments are part of a series of planned, semi-annual updates to the Retrofit Program, with the next round of changes scheduled for Fall 2026.

Because engineering a complete application takes time, the window to secure the maximum $860/kW solar rebate is closing quickly. If you have been planning a solar installation for your facility, now is the time to act.