THUNDER BAY — Ontario's Independent Electricity System Operator has launched a new incentive for homeowners with electrically-heated homes to buy and install a heat pump.
But in Northwestern Ontario, the HomeEnergySaver program – announced last month – is only available to residents of the Kenora area.
Homeowners in numerous locations in Southern Ontario may also apply.
A rebate of up to $10,000 is available for installation of a ground-source heat pump, while an air-source heat pump may qualify the homeowner for a rebate of up to $5,000.
Heat pumps work by absorbing heat from either the ground or the outside air and transferring it to a fluid, which is then compressed to increase its temperature. This heat is next transferred from the compressed fluid into the central heating system, to use both for heating and hot water.
Heat pumps can also work in reverse, to cool a home.
Newswatch asked the IESO why the incentives are only being offered in selected areas of Ontario.
In an emailed response, it said the HomeEnergySaver program's objective is to reduce demand in specific parts of the province in order to avoid or defer investments in new infrastructure.
"The regions covered by the program...include areas where demand growth is happening more quickly than the provincial average...In some regions, a targeted energy efficiency program like this is identified as a cost-effective means of managing growing demand and keeping the grid reliable."
After Newswatch requested further clarification, the IESO stated that forecast electricity demand in the Kenora area may exceed the capacity of the Kenora Transformer Station by 2029 without new investments, and that Synergy North has received several inquiries from potential customers seeking new connections.
"Because there is still a lot of uncertainty around if potential new customers will commit to development in the area, the IESO is offering energy efficiency programming for now to give planners more time to see if these new customers materialize before having to commit to new infrastructure investments."
IESO said no supply needs are currently identified for Thunder Bay.
"Demand is increasing, but the existing infrastructure has sufficient capacity to meet the need, especially after the Waasigan Transmission Line goes into service," it said.
Newswatch asked the office of Thunder Bay-Atikokan MPP Kevin Holland if he had any concern that his riding is excluded from the new rebate program.
There was no direct response to the question, but a spokesperson forwarded information from the Ministry of Energy confirming the IESO program is focused on grid-constrained areas of the province.
The ministry also noted the IESO offers the Energy Affordability Program, a province-wide income-based program that subsidizes a variety of energy-saving initiatives to homeowners, including free heat pumps for qualifying households.
This program is also coordinated with a program offered to customers of Enbridge Gas.
However Lise Vaugeois, the NDP member of the legislature for Thunder Bay-Superior North, said she'd like to see rebates for heat pumps available on a broader basis in the region.
"I am disappointed not to see this being offered in Thunder Bay, and I certainly wonder about whether this could be offered to the north shore."
Vaugeois said she plans to raise the issue at Queens Park.
