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Rising Energy Costs in Ontario: What to Expect in 2025
Ontario homeowners are no strangers to fluctuating energy prices, and 2025 is shaping up to be another year where costs head upwards. According to the Ontario Energy Board (OEB), residential electricity rates have been increasing at an average of 2-3% per year, with further increases expected in mid-2025 due to higher generation costs, carbon pricing, and infrastructure investments.
Key Factors Driving Higher Rates
- Carbon Pricing: As part of Canada’s climate action plan, carbon tax rates are climbing, directly impacting natural gas prices.
- Grid Modernization: Investments in renewable energy, smart grid technology, and system upgrades are being passed on to consumers.
- Global Energy Volatility: Supply chain disruptions and global demand shifts are contributing to higher wholesale energy prices.
In 2024, the average Ontario household paid roughly 13.1 cents per kWh, but projections indicate that by the end of 2025, rates could exceed 14.5 cents per kWh. Natural gas prices are also expected to rise, with Enbridge and other suppliers forecasting a 5-7% increase in delivery rates.
What This Means for Homeowners
For the average homeowner in Ontario, higher energy costs translate into higher monthly utility bills, especially during peak seasons like winter and summer. A typical household could see annual increases of $150-$250 on electricity bills alone, not accounting for higher heating costs during winter.
Easy Ways to Cut Your Energy Costs in 2025
The good news? Homeowners can fight back against rising rates with simple, cost-effective upgrades and smart habits. Here’s how:
1️⃣Apply for Energy Rebates & Incentives
Take advantage of Ontario’s Home Efficiency Rebate Plus (HER+), which offers:
Up to $10,000 in rebates for insulation, windows, and heat pumps.
Bonus incentives for completing multiple energy-saving upgrades.
Free energy audits to help homeowners find savings opportunities.
Pro Tip: Empower Home Comfort’s energy advisors can guide you through the rebate process to maximize your savings.
2️⃣ Install a Smart Thermostat
Smart thermostats can save homeowners up to 10% on heating and cooling bills by automatically adjusting temperatures based on your schedule. Plus, programs like Enbridge’s Smart Thermostat Rebate offer up to $75 back when you install an eligible device.
3️⃣ Seal Air Leaks & Improve Insulation
An estimated 25-30% of home energy loss happens through poorly sealed windows, doors, and attics. Simple fixes like:
Adding weatherstripping.
Sealing cracks and gaps.
Upgrading attic insulation.
These can cut heating and cooling costs by up to 15%.
4️⃣ Upgrade to High-Efficiency Equipment
Consider replacing old furnaces, air conditioners, and water heaters with ENERGY STAR®-certified models. Many of these upgrades qualify for government rebates and offer:
20-30% lower energy use.
Better comfort and reliability.
Lower maintenance costs.
Empower Home Comfort’s $99 Complete Comfort Package can help you assess your home and recommend affordable upgrades.
5️⃣ Run Appliances During Off-Peak Hours
Ontario’s Time-of-Use pricing means you pay less for electricity during off-peak times (usually evenings and weekends). Running dishwashers, laundry machines, and charging devices during these hours can shave 5-10% off your bill.
6️⃣ Take Advantage of Free Home Energy Audits
A professional audit can uncover hidden energy waste and help you prioritize improvements. Homeowners can access free or low-cost audits through programs like Enbridge’s Home Efficiency Rebate and Empower Home Comfort’s energy advisory services.
Quick Hacks to Save Even More
Unplug unused electronics to avoid phantom power drain (up to $100/year savings).
Switch to LED bulbs — they use 75% less energy than incandescents. Clean HVAC filters regularly to improve efficiency by 5-15%.
Lower your water heater temperature to 49°C to cut water heating costs.
Stay Ahead of Rising Energy Costs with Empower Home Comfort
Rising energy prices are inevitable, but smart homeowners in Ontario can take control of their bills with the right strategies and expert help. From rebate assistance to energy-efficient upgrades, Empower Home Comfort makes it easy and affordable to keep your home comfortable and your energy bills low.
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