Who Can Apply to Hydro‑Québec’s Efficient Solutions Program — Medium and Large Businesses

The Efficient Solutions Program — Medium and Large Businesses Component is Hydro‑Québec’s flagship utility rebate for commercial, institutional, and industrial energy efficiency in Québec. It provides incentives covering up to 75% of eligible costs to help organizations purchase and install equipment and systems that reduce electricity consumption and improve energy performance.

This guide explains who can apply to Hydro‑Québec’s Efficient Solutions Program (Medium & Large), how eligibility is determined, and how your rate class, facility type, and project scope affect your fit. Use it to self‑assess eligibility before preparing your application under the Simplified Option (predefined measures in the OSE tool) or the Customized Option (measures not listed in OSE, up to a maximum of $5 million).

As of December 1, 2025, the program remains focused on Québec‑based business customers on eligible business electricity rate classes G9, M, L, or LG, with institutional and industrial facilities included when they meet these conditions.

Program Overview

Hydro‑Québec’s Efficient Solutions Program (Medium and Large Businesses Component) supports energy‑efficient equipment and systems across more than 200 predefined measures via its OSE calculator, plus a Customized Option for unique or innovative measures not captured in OSE.

Key characteristics:

• Funding model: Utility incentive/subsidy (non‑repayable, subject to program rules)

• Typical coverage: Up to 75% of eligible project costs

• Eligible settings: Commercial, institutional, and industrial buildings in Québec

• Options:

• Simplified Option: Uses the OSE (Efficient Solutions) calculation tool for predefined measures

• Customized Option: Tailored projects not in OSE, up to $5 million in financial assistance

• Program update note: Requirements refreshed on October 7, 2024; transitional rules may apply if your project started before that date

Why eligibility matters:

• The Medium & Large component is tied to specific Hydro‑Québec business rates (G9, M, L, LG). Rate class is a practical first filter and appears on your electricity bill under Details of costs.

• The Small Businesses component serves customers on Rate G or Flex G; those customers should consider that component instead.

Applicant Type Requirements

Eligible applicant types include a broad range of organizations operating in Québec, provided they meet the rate class and facility criteria.

Eligible applicant categories typically include:

• For‑profit corporations and incorporated businesses

• Medium and large enterprises in manufacturing, processing, warehousing, logistics, retail with large footprints, hospitality, and offices

• Institutional organizations such as hospitals, long‑term care facilities, universities, CEGEPs, schools, and publicly funded institutions that take service under eligible business rates

• Municipalities and public sector facilities connected to Hydro‑Québec’s distribution network under eligible business rate classes

• Non‑profit organizations owning or operating qualifying commercial, institutional, or industrial buildings on eligible rates

Entity considerations:

• Owner vs tenant: Owners and tenants are generally eligible when they are the party responsible for the eligible Hydro‑Québec electricity account for the project site. Confirm your account holder status and authorization for project work.

• Aggregators/partners: Specialized companies and consulting engineering firms can support clients; aggregators may be involved under program rules when acting on behalf of multiple sites or customers (notice of participation forms may be required).

Size & Scale Criteria

The Medium & Large Businesses component is designed for facilities with higher demand profiles that fall under Hydro‑Québec’s business rate classes beyond Rate G/Flex G.

Key size indicators:

• Electricity rate class is the primary indicator, not headcount or revenue. For the Medium & Large component, typical eligible rates are G9, M, L, or LG.

• Facilities with significant demand or specialized process loads (industrial processes, cold storage, data centres, hospitals) often fall into these classes.

Project scale:

• There is no universally fixed minimum project size stated here; however, meaningful energy savings and compliant measures are expected.

• Customized Option projects can receive up to $5 million. The actual incentive depends on OSE outputs or the approved customized calculation and measure eligibility.

Geographic Eligibility

Location rules:

• The program is available to organizations in Québec with qualifying Hydro‑Québec business electricity accounts.

• Project sites must be located in Québec and connected to Hydro‑Québec’s network (some off‑grid network rules exist; verify specific conditions if you are on an eligible off‑grid system).

• Regional availability: The program applies across the province, including the Montréal region, Québec City region, Estrie, Montérégie, Abitibi‑Témiscamingue, Saguenay–Lac‑Saint‑Jean, Outaouais, Côte‑Nord, and Bas‑Saint‑Laurent.

Cross‑border and multiple‑province organizations:

• Only Québec sites with eligible Hydro‑Québec accounts qualify under this program. Out‑of‑province facilities are not eligible.

Project & Activity Requirements

Eligible projects:

• Projects must involve the purchase and installation of energy‑efficient equipment or systems that improve electricity efficiency in commercial, institutional, or industrial buildings.

• Two pathways are available:

• Simplified Option: Choose from 200+ predefined measures using the OSE calculation tool (e.g., HVAC upgrades, efficient heat pumps, heat recovery, motors and variable frequency drives, controls/EMS/BMS, refrigeration efficiency, compressed air improvements, demand management automation).

• Customized Option: For measures not listed in OSE, subject to technical and financial evaluation, with incentives up to 75% of eligible costs and up to $5 million.

Timing:

• For the Simplified Option, you typically complete the work and then submit your request using OSE once installation is complete. Compliance verification is required before payment.

• If you plan an innovative or complex measure not in OSE, consult the Customized Option pathway and ensure timing aligns with program rules.

Multi‑site and multi‑measure projects:

• You can complete projects at multiple sites; each site’s rate class and savings profile will govern eligibility and incentive calculations.

• Combining multiple measures is allowed; OSE calculates by measure and aggregates incentives.

Financial & Operational Criteria

Financial standing:

• Applicants should be in good standing with Hydro‑Québec, with accounts active and in compliance.

• Applicants must be capable of cost‑sharing the non‑funded portion (the program covers up to 75%; your organization funds the balance and any ineligible costs).

Operational readiness:

• Applicants must be able to install and operate the energy‑efficient equipment as specified by the measure or customized approval.

• Adequate documentation, invoices, and proof of installation are required to claim the incentive.

Stacking:

• The program may allow stacking with other public funding within defined limits. Disclose all other incentives and subsidies. Total public support must respect program stacking rules; verify thresholds for your case.

Ineligible Applicants

The following are typically not eligible under the Medium & Large Businesses component:

• Customers on Rate G or Flex G (these are served by the Small Businesses component).

• Residential customers and projects in residential buildings.

• Projects outside Québec or without an eligible Hydro‑Québec business electricity account.

• Entities unable to provide required documentation (invoices, commissioning records, OSE outputs) or that do not meet program conditions and undertakings.

• Projects that have already received incentives for the same measure under this component or that double‑count savings contrary to program rules.

Important program distinction:

• Rate class determines which component you must use. If your site’s bill shows Rate G or Flex G, use the Small Businesses component. If your site’s bill shows G9, M, L, or LG, you are positioned for the Medium & Large component.

Special Cases & Exceptions

Institutional and public sector:

• Hospitals, schools, post‑secondary institutions, and municipal facilities can be eligible if they are on an eligible business rate class and meet technical criteria.

Leased buildings and multi‑tenant sites:

• Tenants may apply if they hold the Hydro‑Québec account for the project scope and have authorization from the owner for the installation.

• In owner‑metered multi‑tenant buildings, the owner typically applies; confirm metering and authorization.

Off‑grid and cooperative networks:

• Some municipal, cooperative, or off‑grid networks may qualify under specific documentation and rules. Dedicated program documents outline these cases; check applicable requirements before proceeding.

New construction vs retrofit:

• Many measures target retrofits and modernization. Some components may apply in major renovations or new construction when energy performance gains can be clearly demonstrated under program criteria.

Aggregators and advisors:

• Energy service companies, consulting engineers, and aggregators can support applicants. Notices or forms may apply when aggregators submit on behalf of clients.

Self‑Assessment Checklist

Use this quick checklist to determine if you are likely eligible for the Medium & Large component:

• Is your project site in Québec?

• Does your electricity bill for the site show a business rate class of G9, M, L, or LG?

• Is the building commercial, institutional, or industrial (not residential)?

• Are you installing energy‑efficient equipment or systems that reduce electricity use or demand?

• Can your measures be found in the OSE tool (Simplified Option), or do you have a case for a Customized Option not listed in OSE?

• Can you provide invoices, proof of installation, and any required commissioning or performance documentation?

• Are you prepared to fund at least 25% of eligible costs plus any ineligible expenditures?

• If multiple sites are involved, can you provide separate information per site and rate class?

• Are you in good standing with Hydro‑Québec and compliant with program terms and undertakings?

• If you are a tenant, do you have owner permissions for the work (when required) and control over the Hydro‑Québec account for the project scope?

If you answered “yes” to most of the above, your organization likely qualifies to apply under the Medium & Large Businesses component.

How to Verify Your Rate Class (G9, M, L, LG)

Your Hydro‑Québec bill contains a Details of costs section. In that section, look for your rate class code:

• G9

• M

• L

• LG

These codes are the practical gateway for eligibility under the Medium & Large component. If your bill shows Rate G or Flex G, consider the Small Businesses component instead.

Common Eligibility Questions

Am I eligible if I operate an institutional facility?

• Yes, institutional buildings like hospitals, schools, and universities can be eligible if they take service under an eligible business rate class and meet measure criteria.

Do multi‑tenant buildings qualify?

• Yes, but eligibility depends on who holds the electricity account and who has authority to perform the work. Owners often apply for owner‑metered buildings; tenants can apply if they are the account holder for their space and have owner authorization.

Can I apply if my project already started?

• For the Simplified Option, projects are generally completed and then submitted via OSE with proof of installation. For the Customized Option, ensure alignment with program timelines before proceeding. Verify rules if work started before October 7, 2024.

Are public institutions and municipalities eligible?

• They can be, provided their facilities are on eligible Hydro‑Québec business rate classes and projects meet technical requirements.

Can I combine this with other incentives or tax credits?

• Often yes, but stacking rules limit total public support. Disclose all other funding when you apply.

Practical Examples of Eligible Organizations

• A food and beverage processor on Rate M replacing compressors and adding heat recovery under the Simplified Option using OSE measures.

• A cold storage warehouse on Rate L installing high‑efficiency heat pumps and advanced controls through OSE measures.

• A hospital on Rate LG implementing demand management automation and VFDs as a combined project.

• A municipality upgrading wastewater treatment plant aeration with high‑efficiency blowers via a Customized Option due to specialized equipment not listed in OSE.

• A data centre on Rate G9 optimizing chilled water plants and adding sequencing controls under the Simplified Option.

All examples assume the site is in Québec, the applicant is on an eligible rate class, and program documentation is provided.

What’s Not Eligible in Practice

• Residential buildings and mixed‑use projects where the scope is exclusively residential.

• Sites outside Québec or with electricity provided by a non‑eligible supplier under different rate structures.

• Small commercial customers on Rate G or Flex G (they belong to the Small Businesses component).

• Projects that do not produce verifiable electricity savings or demand reductions, or that lack required documentation to validate eligibility.

Documentation Tips Tied to Eligibility

• Rate class proof: Keep a recent Hydro‑Québec bill for the site showing the rate (G9, M, L, LG).

• Site control: If you are a tenant, keep a copy of your lease or owner authorization letter permitting the installation.

• Technical eligibility: For Simplified Option, export OSE results for each measure. For Customized Option, compile engineering analyses that demonstrate baseline conditions, proposed improvements, and estimated savings.

• Timing: Note project start and completion dates, especially if any work predates the October 7, 2024 program update.

Conclusion

Eligibility for Hydro‑Québec’s Efficient Solutions Program — Medium and Large Businesses Component rests on a few core factors: Québec location, an eligible business rate class (G9, M, L, or LG), a commercial, institutional, or industrial facility, and an energy‑efficiency project that aligns with OSE measures (Simplified Option) or meets Customized Option criteria. Confirm your rate class on your bill, ensure you can document the project and savings, and review program terms and undertakings. With up to 75% of eligible costs available — and up to $5 million under the Customized Option — qualifying organizations can meaningfully reduce project payback times while advancing energy performance across Québec.