In 2023, Hydro-Québec has paid out over 90 million in grants across all their energy efficiency programs. You may be wondering why, how long the programs will last, whether there is a maximum budget, how to take advantage of them, etc. This article seeks to answer these questions and paint the reality in the “big picture”.
Energy surplus and energy efficiency cycles
Quebec is currently in an energy efficiency cycle, which means that demand is very high, sometimes even exceeding the amount of energy Hydro-Québec is able to supply. Growing energy demand is fuelled by a number of factors, including :
- Electrification of transportation: Quebec is pushing the adoption of electric vehicles (EVs) to reduce greenhouse gas emissions.
- Population growth: Quebec’s population continues to grow, particularly in major urban centers like Montreal and Quebec City.
Global energy transition: Québec attracts foreign companies and investors because of its clean, renewable electricity production. - Converting fossil fuel systems to electricity: Many homes and businesses are replacing fossil fuel heating systems (oil, natural gas) with heat pumps and other electric systems.
- Climate change: Harsh winters and increasingly hot summers, due to climate change, are increasing the use of
- Digital infrastructure development: The growth of data centers and digital technologies (such as artificial intelligence and cloud storage) requires massive amounts of electricity to operate reliably.
Taking all these factors into account, some energy management experts believe that Quebec will remain in an energy efficiency cycle for several decades.
The “2035 Action Plan – Towards a decarbonized and prosperous Quebec”
In 2022, Hydro-Québec published an action plan that provides an excellent overview of the current situation, the objectives to be achieved and the issues at stake. You can consult the complete plan or the checklist. Among the relevant information contained in this plan, a forecast of the increase in electricity required by the Quebec population is shown in the graph below. The conclusion is quite striking: in the next 25 years, double the current electricity will have to be produced.
To illustrate the accelerated growth in electricity production needed to meet demand, we compare when the last 100% increase in our production took place. Quebec produced around 212 TWh of electricity in 2021. In the late 1970s, production was around 100 TWh. It took almost 50 years to produce an additional 100 TWh, or double production. We now need to produce a further 200 TWh, i.e. double again, in just 28 years.
Produce more and consume better
To meet the growing demand for electricity, it will be necessary to increase the production of the network, but also to ensure that the electricity is properly consumed. Increasing the output of the hydroelectric grid raises major environmental and economic issues. Before producing more energy, it is preferable to ensure that it is well used. This is where subsidy programs come in.
Subsidy programs exist to make efficient electrical appliances more affordable. A project opting for this type of appliance will benefit from subsidies that make the investment less expensive and certainly more profitable in the long term. To consume electricity more efficiently, we need to make Quebec’s buildings as efficient as possible. Every kWh saved helps meet the growing demand for electricity.
Among the subsidy programs currently in place, Hydro-Québec offers subsidies for residential buildings (including multi-unit dwellings of 19 units or less) through the Logis Vert program. This relatively straightforward program offers subsidies for the installation of heat pumps, roof insulation, thermal accumulators and a few other measures.
For commercial, industrial, institutional and agricultural buildings, as well as multi-unit dwellings of 20 units or more, we offer the Efficient Solutions program. This program is much more comprehensive, and can even subsidize customized projects.
Efficient Solutions grants
The Efficient Solutions program is divided into 2 parts: the Simplified Offer and the Customized Offer. The Simplified Offer includes grants for over 200 energy efficiency measures. Your project does not need to be submitted before the work is carried out to be eligible. The application can simply be submitted once the work has been completed. The amounts are pre-established according to the performance of the appliances to be subsidized, and we can calculate the amounts for you using OSE software.
Here are the most interesting measures in the program.
Heat pump
- Bi-bloc heat pump: Up to $50 per 1,000 BTU
- VRF heat pump: Up to $180 per 1,000 BTU
- Rooftop heat pump: Up to $175 per 1,000 BTU
Heat recovery
- Plate heat recovery unit: Up to $167 per 100 CFM
- Thermal wheel heat recovery unit : Up to $250 per 100 CFM
- Cassette reclaimer: Up to $620 per 100 CFM
Power demand management
- Grant available for programming your building automation system to reduce power demand during peak periods. Potential subsidy of $5,000 per 100 kW of real power (highest billed power in a 12-month period).
Variable-frequency drive
- Fan motor: Up to $35 per 100 CFM
- Pump motor: Up to $60 per 1 HP
DLC Premium LED lighting
- Grant of $40 per DLC Premium luminaire.
- If fixtures are controlled by occupancy sensors, an additional $3,600 or $10,800 is granted, depending on the quantity of fixtures controlled.
Windows with a U-value of less than 1.90 W/(mᒾ x ℃)
- Up to $0.77 per square foot
Insulation
- Exterior walls: Up to $0.44 per square foot
- Roofing: Up to $0.37 per square foot
If your project involves a custom-designed energy-efficiency system, it is possible to submit the project in the Customized Offer. Subsidies are then calculated at $0.45 per kWh saved. To be eligible, the project must be submitted to and accepted by Hydro-Québec before work begins.
In conclusion, Hydro-Québec’s subsidy programs play a key role in meeting Quebec’s growing energy demand while promoting more responsible and efficient consumption. These initiatives, whether for residential or commercial buildings, offer concrete solutions for reducing investment costs and maximizing long-term energy savings. As the province prepares to double its electricity production by 2050, these subsidies are more essential than ever to support the energy transition and ensure a sustainable future for all.
By taking advantage of the subsidies offered by Hydro-Québec, you’re not only making substantial savings on your projects, you’re also helping to reduce your environmental footprint. These initiatives increase the energy efficiency of your buildings, which translates into lower long-term operating costs. For companies, it’s an opportunity to become more competitive by optimizing their infrastructures and complying with modern environmental standards. By adopting these measures, you are actively participating in the energy transition, while benefiting from enhanced comfort and improved performance.
We hope you find this information useful in helping your customers make the most of these subsidies. We remain available at all times to assist you with your projects, calculate potential subsidy amounts for your proposals and apply for subsidies for your projects.