How to Apply to Hydro‑Québec’s Efficient Solutions Program (Medium & Large Businesses)

Hydro‑Québec’s Efficient Solutions Program — Medium and Large Businesses Component provides incentives of up to 75% of eligible costs for energy‑efficiency projects in commercial, institutional, and industrial buildings across Québec. This utility incentive helps organizations fund efficient equipment and systems, from HVAC to process upgrades and demand management automation.

This guide explains how to apply to the Hydro‑Québec Efficient Solutions Program, the application process for the Simplified Option (predefined measures in the OSE tool) and the Customized Option (measures not listed in OSE), required documents, timelines, and practical tips to improve approval and payment speed.

Overview of the Efficient Solutions Program (Medium & Large Businesses)

The Efficient Solutions Program — Medium and Large Businesses Component is a Québec utility rebate for organizations on Hydro‑Québec’s business rate classes other than Rate G or Flex G. Eligible medium and large customers typically fall under rate classes G9, M, L, or LG, as shown in the “Details of costs” section on your Hydro‑Québec bill.

Key facts:

• Funding coverage: up to 75% of eligible project costs

• Components: Simplified Option (over 200 predefined measures via the OSE calculator) and Customized Option (measures not included in OSE)

• Maximum under the Customized Option: up to $5 million in financial assistance

• Program scope: commercial, institutional, and industrial buildings in Québec

• Update: program requirements updated on October 7, 2024 (transitional rules apply to projects started before that date)

In one sentence: Hydro‑Québec’s Efficient Solutions Program for medium and large businesses in Québec provides incentives covering up to 75% of eligible costs to install energy‑efficient equipment and systems.

Eligibility Requirements

Use this checklist to confirm basic eligibility before preparing your application:

• Location and jurisdiction

• Your project is located in Québec and served by Hydro‑Québec.

• Electricity rate class (Medium/Large indicator)

• Your business is billed on a Hydro‑Québec business rate other than G or Flex G.

• Typical eligible rate classes for this component: G9, M, L, or LG.

• Verify your rate in the “Details of costs” section of your electricity bill.

• Applicant types

• Commercial, institutional, and industrial organizations, including private companies and public institutions operating eligible Québec facilities.

• Non‑profits operating eligible facilities may also qualify if other conditions are met.

• Project scope

• The project consists of installing equipment and systems that improve electrical energy efficiency or demand management.

• For the Simplified Option, planned measures must be listed in the OSE (Outil Solutions efficaces) calculator.

• For the Customized Option, measures not in OSE can be proposed with the required technical and savings documentation.

• Timing and transition

• As of October 7, 2024, updated requirements apply. Projects initiated before that date should follow transitional rules.

• Program compliance

• You agree to the program’s Conditions and Undertakings.

• You will provide complete documentation (technical, financial, and proof of installation).

• You will cooperate with verification, which may include a site visit.

• Component alignment

• If your facility is on Rate G or Flex G, your project belongs to the Small Businesses component.

• If different sites have different rates, you may apply under different components accordingly.

Note: Specific edge cases (multi‑tenant buildings, leased facilities, multi‑site roll‑ups, and public sector nuances) may be admissible; confirm details in the participant’s guide relevant to your rate class and component.

Required Documents

Prepare a complete package to avoid delays. The following list reflects common requirements for the Medium and Large Businesses component:

• OSE calculator files (Simplified Option)

• Correct OSE version aligned with your project start date and program rules.

• Complete data entry for each selected measure (operating assumptions, baseline, equipment specs).

• Technical documentation

• Manufacturer datasheets and cut sheets for all equipment.

• Commissioning/start‑up reports, where applicable.

• Controls sequences, setpoints, and photos of installed equipment.

• Financial documentation

• Detailed invoices for equipment and installation (labour and materials itemized).

• Proof of payment (e.g., paid invoice stamp, accounting ledger entries).

• Breakdown of any credits, discounts, or rebates from suppliers.

• Eligibility proofs

• Copy of a recent Hydro‑Québec electricity bill showing the rate class (G9, M, L, or LG).

• Proof of site location and applicant legal name matching the bill and invoices.

• Signed Conditions and Undertakings.

• Customized Option (if applicable)

• Engineering analysis and savings calculation methodology.

• Measurement and verification (M&V) plan or monitoring approach.

• Any required pre‑approval confirmation issued by the program (if requested).

• Aggregator participation (if applicable)

• Notice of participation – Aggregator, when a third‑party aggregates multiple projects.

Always keep pre‑ and post‑installation photographs, serial numbers, and commissioning logs ready. Digital signatures are generally acceptable unless stated otherwise in program documents.

Step-by-Step Application Process

Follow these steps to apply for Hydro‑Québec business incentives under the Efficient Solutions Program (Medium & Large):

Step 1: Confirm you are in the correct component

• Check the “Details of costs” section of your Hydro‑Québec bill to verify your business rate.

• If your facility is on G9, M, L, or LG, you are in the Medium and Large Businesses component.

• If your portfolio includes sites on Rate G or Flex G, those sites should use the Small Businesses component.

Step 2: Choose your pathway — Simplified or Customized

• Simplified Option:

• Use the OSE tool to select from 200+ predefined energy‑efficiency measures.

• Typical examples include efficient heat pumps, VFDs, HVAC upgrades, refrigeration improvements, compressed air measures, controls/EMS/BMS, and demand management automation.

• Customized Option:

• For measures not listed in OSE, prepare a customized proposal describing the technology, baseline, expected savings, and calculation approach.

• This pathway may require program review prior to procurement/installation; verify the specific pre‑approval requirements.

Step 3: Review eligibility rules and conditions

• Read the participant’s guide for the Medium and Large Businesses component and the Conditions and Undertakings.

• Confirm transitional rules if your project started before October 7, 2024.

• Align your procurement plan and schedule with documentation and verification needs.

Step 4: Prepare the savings estimate and incentive calculation

• Simplified Option (OSE):

• Populate OSE with accurate baseline and operating data for each measure.

• Upload or attach required technical specs and assumptions.

• Generate the estimated incentive and confirm measure‑specific conditions.

• Customized Option:

• Build the engineering model (e.g., calculations, simulations, benchmarks) to quantify kWh and demand savings.

• Draft the M&V approach to confirm results post‑installation.

• Ensure your incentive request reflects eligible costs only and aligns with the 75% coverage limit and any measure caps.

Step 5: Implement the project (procurement and installation)

• Proceed with purchase and installation according to program rules.

• Keep detailed records: purchase orders, delivery slips, commissioning reports, and photographs.

• Maintain a clean separation between eligible and ineligible costs in your accounting.

Note: For Simplified Option measures, the program indicates you submit the request after installation using the OSE tool. For Customized Option projects, confirm whether pre‑approval is required before purchase to maintain eligibility.

Step 6: Compile your application package

• Export or finalize your OSE files (Simplified) or compile your customized proposal package.

• Attach invoices, proof of payment, datasheets, commissioning/start‑up reports, and rate‑class proof.

• Include the signed Conditions and Undertakings and any required aggregator notice.

• Ensure the applicant name and site address are consistent across bill, invoices, and forms.

Step 7: Submit your request

• Submit your application through the submission channel indicated for the component (portal or email, as specified in the participant’s guide).

• Use a clear subject line and include the project/site identifier, component, and applicant name where requested.

• Retain a copy of the complete submission for your records.

Step 8: Respond to verification and technical review

• Hydro‑Québec will review your file for compliance and may request clarifications or additional documents.

• A site visit may be scheduled to verify installation and operating conditions.

• Provide prompt, complete responses to avoid delays.

Step 9: Receive approval and payment

• Once your project is confirmed compliant, Hydro‑Québec issues approval and processes the incentive payment.

• Payments are generally made after acceptance of a complete file; timing varies with volume and the complexity of your project.

• Keep your financial records and equipment in service for the required period, as stated in program conditions.

Application Timeline

Timelines vary by project size and volume of applications. A typical sequence is:

• Planning and OSE preparation: 2–6 weeks, depending on data availability and vendor quotes.

• Procurement and installation: varies by scope, typically several weeks to a few months for medium projects.

• Submission and review: often several weeks after a complete package is received.

• Payment: processed after approval; allow additional time for disbursement.

If your project began before October 7, 2024, account for transitional rule checks. Customized Option proposals may require extra time for technical review.

Tips for a Successful Application

• Verify your rate class early

• Confirm G9, M, L, or LG on your bill before investing effort.

• Use the correct OSE version

• Ensure your OSE files match the current rules associated with your project start date.

• Provide complete, consistent documentation

• Align applicant name, site address, invoices, proofs of payment, and bill details.

• Prioritize high‑impact measures

• Focus on equipment with strong kWh and demand reductions (e.g., efficient heat pumps, VFDs, controls, heat recovery).

• Coordinate with qualified professionals

• Engage consulting engineers or specialized contractors to validate savings and documentation quality.

• Plan for verification

• Take pre/post photos, retain serial numbers, and document control sequences.

• Disclose other funding

• If stacking with other incentives or public funding, disclose sources and amounts to avoid over‑funding beyond permitted limits.

• Bundle multi‑site or multi‑measure projects

• Consolidate where appropriate to streamline review and speed execution.

Common Mistakes to Avoid

• Applying under the wrong component

• Sites on Rate G or Flex G must use the Small Businesses component.

• Using outdated or incomplete OSE files

• Always work with the correct OSE version and fill all required measure fields.

• Missing proof of payment or insufficient invoices

• Provide detailed, itemized invoices and clear payment evidence.

• Insufficient technical evidence

• Include datasheets, commissioning documents, and control details that substantiate savings.

• Starting a Customized Option project without necessary approvals

• For non‑OSE measures, confirm any pre‑approval requirements before purchasing equipment.

• Ignoring transitional rules

• Projects that began before October 7, 2024 may follow different requirements; document your timeline.

• Submitting before installation (Simplified Option)

• Under the Simplified Option, submit after installation as directed.

What Happens After You Apply

• Acknowledgement and file creation

• You receive confirmation that your request was received.

• Technical and compliance review

• Hydro‑Québec evaluates eligibility, documentation sufficiency, and savings.

• Clarifications or site visit

• You may be asked for additional evidence; a site inspection can occur.

• Decision and payment

• Approval is issued if the project complies; payment is processed thereafter.

• Obligations after payment

• Maintain equipment in service and keep records for audit purposes.

• If not approved

• You will be informed of reasons for refusal; address gaps and consider resubmission if eligible.

Conclusion

The Hydro‑Québec Efficient Solutions Program — Medium and Large Businesses Component is a practical way to fund energy‑efficient upgrades in Québec, with incentives covering up to 75% of eligible costs. By confirming your rate class, selecting the right pathway (Simplified vs. Customized), preparing accurate OSE or engineering files, and submitting complete documentation, you can streamline approval and payment. Use this application guide to plan your project, avoid common pitfalls, and accelerate access to Hydro‑Québec business incentives.