Green Manufacturing and Decarbonization Grants in Ontario for 2026

Q: Can utility incentives be combined with federal tax credits in Ontario?

In many cases, yes, but stacking rules apply. Manufacturers often stack IESO Save on Energy incentives or Enbridge Gas incentives with the federal clean technology tax credit. Always check caps, ineligible cost categories, and double-counting rules before finalizing the budget.

Q: How do I start an application for industrial electrification incentives?

Begin with an energy audit or feasibility study to identify measures such as electrified boilers, induction heating, or high-temperature heat pumps. Gather quotes, establish baselines, and draft an M&V plan. Submit pre-approval where required and align procurement timelines with program deadlines.

Q: Which regions in Ontario offer additional industrial energy incentives?

Northern Ontario communities such as Sudbury, Thunder Bay, and Sault Ste. Marie often have regional development supports. Urban clusters like Toronto, Hamilton, Windsor, Kitchener-Waterloo, Niagara, and Ottawa provide access to utility and innovation programs tailored to local industry needs.

Q: Are SMEs eligible for Ontario decarbonization funding?

Yes. SME sustainability grants in Ontario provide non-repayable contributions for energy audits, retrofits, and energy management systems. Many programs offer higher incentive rates for small businesses, first-time applicants, or diverse-owned and Indigenous-owned companies.

Q: What documentation is required for Ontario industrial grants?

Expect technical studies, energy baselines, vendor quotes, schedules, and an M&V plan. Financial statements, proof of Ontario operations, and ESG or LCA/PCF documentation may be requested. Keep a checklist to track eligibility proofs and attestations.

Q: How long do Ontario grant approvals take for manufacturers?

Timelines vary by program and project complexity. Utility incentives with prescriptive measures can be faster, while large capital grants or SIF-style projects require multi-stage reviews. Plan for phased milestones and long-lead equipment.

Q: Can CCUS or hydrogen feasibility studies receive funding in Ontario?

Yes. CCUS feasibility study grants and clean hydrogen funding streams support front-end engineering, site assessments, and integration studies. These help cement, steel, and chemical facilities evaluate capture, transport, storage, or hydrogen-ready equipment.

Q: What are best practices for measurement and verification (M&V)?

Define metering points early, document baseline conditions, and select accepted protocols. Use sub-metering for major loads and integrate data into ISO 50001 systems. Retain third-party verification when programs require attestations.

Q: Are there grants for circular economy and recycled content in manufacturing?

Ontario programs may fund recycled content equipment, industrial waste diversion, eco-design, and low-carbon product development. ESG reporting support and LCA/PCF funding are also available to align with customer requirements and market access.

Accelerate plant decarbonization with Ontario and federal programs. Access incentives for energy efficiency, electrification, hydrogen, CCUS, and clean fuels.

Ontario manufacturers can leverage a robust mix of grants, incentives, and refundable tax credits to reduce Scope 1 and Scope 2 emissions while boosting productivity. This directory explains eligibility, application steps, and stackable funding across provincial, federal, and utility programs. It is designed for SMEs and large industrials seeking non-dilutive financing for green equipment, retrofits, and innovation.

40 opportunities available

Grant and FundingExpert AdviceOpen

Expanded Energy Management Program

Independent Electricity System Operator (IESO)

Funding to strengthen facility energy management and efficiency initiatives

Eligible Funding

Maximum amount : 250,000 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Mining, quarrying, and oil and gas extraction
Utilities
Construction

Types of eligible projects

TechnologyEnvironment and ClimateHuman Resources

Grant and FundingOpen

XLerate Program

Independent Electricity System Operator (IESO)

Pay-for-performance funding for large-scale Ontario energy-efficiency projects

Eligible Funding

Maximum amount : 15,000,000 $
Up to 75% of project cost

Eligible Industries

Manufacturing
Health care and social assistance
Public administration

Types of eligible projects

TechnologyEnvironment and Climate

Grant and FundingOpen

FedDev — Funding for southern Ontario

Federal Economic Development Agency for Southern Ontario (FedDev)

Funding for businesses in southern Ontario by FedDev Ontario.

Eligible Funding

From $125,000 to $10,000,000

Eligible Industries

Manufacturing
Information and cultural industries
Professional, scientific and technical services
Health care and social assistance

Types of eligible projects

CommercializationArtificial Intelligence (AI)TechnologyEnvironment and ClimateInnovation

Grant and FundingOpen

Regional Tariff Response Initiative (RTRI) — Southern Ontario

Federal Economic Development Agency for Southern Ontario (FedDev)

Supports southern Ontario businesses impacted by international trade disruptions

Eligible Funding

From $125,000 to $1,000,000
Up to 75% of project cost

Eligible Industries

Manufacturing
Wholesale trade
Retail trade
Transportation and warehousing

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovationDigital Transformation

Grant and FundingClosed

Food Safety and Growth Initiative

Sustainable Canadian Agricultural Partnership (SCAP)

Enhance food safety systems, adopt new technologies, and drive sector growth

Eligible Funding

Maximum amount : 75,000 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Wholesale trade
Transportation and warehousing

Types of eligible projects

TechnologyEnvironment and ClimateHuman ResourcesInnovation

Grant and FundingOpen

OVIN — Electric Vehicle (EV) — Stream 1

Ontario Vehicle Innovation Network (OVIN)

Money for electric vehicle related technologies

Eligible Funding

Maximum amount : 100,000 $
Up to 50% of project cost

Eligible Industries

Utilities
Manufacturing
Transportation and warehousing

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovation

Grant and FundingClosed

FedDev Ontario — Funding for organizations that help businesses grow

Federal Economic Development Agency for Southern Ontario (FedDev)

Supporting organizational growth through innovation and sustainable development

Eligible Funding

From $125,000 to $10,000,000

Eligible Industries

Manufacturing
Information and cultural industries
Professional, scientific and technical services
Administrative and support, waste management and remediation services

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Grant and FundingOpen

Eco-Roof Incentive Program

City of Toronto

Supports installation of green and cool roofs in Toronto

Eligible Funding

Maximum amount : 100,000 $

Eligible Industries

Construction
Manufacturing
Educational services
Health care and social assistance

Types of eligible projects

Environment and Climate

Grant and FundingOpen

Retrofit Program

Independent Electricity System Operator (IESO)

Financial incentives for energy efficiency upgrades reducing electricity use

Eligible Funding

Maximum amount : 250,000 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Educational services
Health care and social assistance

Types of eligible projects

TechnologyEnvironment and Climate

Grant and FundingOpen

Energy Performance Program

Independent Electricity System Operator (IESO)

Pays incentives for verified facility electricity savings over time

Eligible Funding

No Condition

Eligible Industries

Utilities
Manufacturing
Educational services
Health care and social assistance

Types of eligible projects

TechnologyEnvironment and Climate

Other SupportClosed

Commercial CoolSaver Program

Independent Electricity System Operator (IESO)

Free commercial HVAC tune-ups and discounts for York Region businesses

Eligible Funding

Maximum amount : 1,450 $
Up to 5% of project cost

Eligible Industries

Utilities
Construction
Manufacturing
Wholesale trade

Types of eligible projects

TechnologyEnvironment and Climate

Other SupportPartnering and CollaborationLoans and Capital investmentsOpen

Ventures at Coralus

Coralus

Funding and support for women and non-binary entrepreneurs

Eligible Funding

Up to 45% of project cost

Eligible Industries

Manufacturing
Health care and social assistance
Arts, entertainment and recreation
Other services (except public administration)

Types of eligible projects

Environment and ClimateInnovation

Other SupportPartnering and CollaborationExpert AdviceOpenClosing Soon

CFIN — Unpuzzling: Foodtech Ontario

Canadian Food Innovation Network (CFIN)

Mentorship program accelerating early-stage foodtech companies in Ontario

Eligible Funding

No Condition

Eligible Industries

Manufacturing
Wholesale trade
Retail trade
Transportation and warehousing

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovationDigital Transformation

Partnering and CollaborationGrant and FundingArchived

Ontario Automotive Investment Strategy (OAIS)

Ministry of Economic Development, Job Creation and Trade (ON)

Funds innovative auto manufacturing projects creating or retaining jobs

Eligible Funding

No Condition

Eligible Industries

Manufacturing

Types of eligible projects

TechnologyEnvironment and ClimateHuman ResourcesInnovation

Researchers And FacilitiesGrant and FundingLoans and Capital investmentsArchived

Next Generation of Jobs Fund

Ministry of Economic Development, Job Creation and Trade (ON)

Supports green job creation and environmental sustainability in Ontario

Eligible Funding

No Condition

Eligible Industries

Agriculture, forestry, fishing and hunting
Utilities
Manufacturing

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateHuman ResourcesInnovation

Grant and FundingLoans and Capital investmentsArchived

Strategic Jobs Investment Fund (SJIF)

Ministry of Economic Development, Job Creation and Trade (ON)

Supports high-value job creation and strategic business investments

Eligible Funding

No Condition

Eligible Industries

Manufacturing
Information and cultural industries
Finance and insurance
Health care and social assistance

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateHuman ResourcesInnovation

Grant and FundingClosed

Regional Economic Growth Through Innovation & Southern Ontario Prosperity Program — Not-for-profit organizations

Federal Economic Development Agency for Southern Ontario (FedDev)

Funds for Southern Ontario not-for-profit organizations helping businesses

Eligible Funding

Minimum amount : 125,000 $
Up to 50% of project cost

Eligible Industries

Manufacturing
Information and cultural industries
Professional, scientific and technical services
Educational services

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Loans and Capital investmentsOpen

Energy Retrofit Loans (ERL)

City of Toronto

Low-interest financing for energy-efficient building retrofits in Toronto

Eligible Funding

Up to 100% of project cost

Eligible Industries

Manufacturing
Retail trade
Real estate and rental and leasing
Professional, scientific and technical services

Types of eligible projects

TechnologyEnvironment and Climate

Grant and FundingOpen

Forest Biomass Program — Innovative bioproduct manufacturing stream

Government of Ontario

Supports forest biomass innovation and utilization in Ontario

Eligible Funding

Maximum amount : 5,000,000 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Utilities
Construction
Manufacturing

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovation

Researchers And FacilitiesExpert AdviceOpen

NRC — Canadian Centre for Housing Technology

National Research Council Canada (NRC)

Housing technology test facilities in Ottawa

Eligible Funding

No Condition

Eligible Industries

Utilities
Construction
Manufacturing
Real estate and rental and leasing

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Grant and FundingClosed

Regional Economic Growth Through Innovation & Southern Ontario Prosperity Program

Federal Economic Development Agency for Southern Ontario (FedDev)

Funding for SMEs in Southern Ontario to grow, innovate and compete

Eligible Funding

Minimum amount : 125,000 $

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Information and cultural industries
Professional, scientific and technical services

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovationDigital Transformation

Grant and FundingClosed

Agri-Tech Innovation Initiative : Stream 3 – Agri-Tech Energy Costs Savings

Agricultural Adaptation Council (AAC)

Supports growth through agri-food innovation and efficiency

Eligible Funding

Maximum amount : 100,000 $
Up to 35% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Loans and Capital investmentsArchived

Advanced Manufacturing Investment Strategy (AMIS)

Ministry of Economic Development, Job Creation and Trade (ON)

Supports Ontario manufacturers investing in advanced technology and innovation

Eligible Funding

Maximum amount : 10,000,000 $
Up to 30% of project cost

Eligible Industries

Manufacturing

Types of eligible projects

TechnologyEnvironment and ClimateHuman ResourcesInnovation

Grant and FundingClosed

Critical Minerals Innovation Fund

Government of Ontario

Funding for innovative critical minerals projects in Ontario

Eligible Funding

Maximum amount : 500,000 $
Up to 50% of project cost

Eligible Industries

Mining, quarrying, and oil and gas extraction
Manufacturing
Professional, scientific and technical services
Administrative and support, waste management and remediation services

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Grant and FundingClosed

OVIN — R&D Partnership Fund – Advanced Charging and Vehicle-to-Grid (V2G) Stream

Ontario Vehicle Innovation Network (OVIN)

Supports R&D collaborations for advanced EV charging and V2G technologies

Eligible Funding

Maximum amount : 1,000,000 $
Up to 33% of project cost

Eligible Industries

Manufacturing
Transportation and warehousing
Information and cultural industries
Professional, scientific and technical services

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovation

Grant and FundingOpen

Site Readiness Program

Government of Ontario

Funding assistance for industrial site preparation in Ontario

Eligible Funding

Maximum amount : 25,000 $
Up to 50% of project cost

Eligible Industries

Manufacturing
Transportation and warehousing
Professional, scientific and technical services
Administrative and support, waste management and remediation services

Types of eligible projects

Environment and Climate

Grant and FundingClosed

Agri-Food Energy Cost Savings Initiative

Government of Ontario

The Agri-Food Energy Cost Savings Initiative supports agri-food processors in increasing energy efficiency.

Eligible Funding

Maximum amount : 300,000 $
Up to 20% of project cost

Eligible Industries

Manufacturing

Types of eligible projects

TechnologyEnvironment and Climate

Grant and FundingClosed

Entrepreneurship and Innovation Fund — Small Businesses or Entrepreneurs Developing Agri-tech and Cleantech Solutions

ventureLAB

Funding for agri-tech and cleantech solutions in York Region

Eligible Funding

Maximum amount : 10,000 $

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Professional, scientific and technical services

Types of eligible projects

Artificial Intelligence (AI)TechnologyEnvironment and ClimateInnovation

Researchers And FacilitiesExpert AdviceOpen

NRC — Hygrothermal performance of buildings testing facilities

National Research Council Canada (NRC)

Energy efficient building testing in Ottawa

Eligible Funding

No Condition

Eligible Industries

Construction
Manufacturing

Types of eligible projects

Environment and ClimateConstruction and Renovation

Grant and FundingClosed

Sustainable New Agri-Food Products & Productivity Program — New Products

Rural Agri-Innovation Network (RAIN)

Support for agriculture and food producers

Eligible Funding

Maximum amount : 10,000 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Grant and FundingOpen

Northern Energy Advantage Program (NEAP)

Government of Ontario

Rebates for Northern Ontario industrial electricity consumers

Eligible Funding

No Condition

Eligible Industries

Mining, quarrying, and oil and gas extraction
Manufacturing

Types of eligible projects

Environment and Climate

Grant and FundingClosed

Emissions Performance Standards program

Government of Ontario

Ontario EPS program reduces industrial greenhouse gas emissions

Eligible Funding

No Condition

Eligible Industries

Manufacturing

Types of eligible projects

Environment and Climate

Grant and FundingClosed

Agri-Tech Innovation Initiative : Stream 2 – Agri-Tech Innovation

Agricultural Adaptation Council (AAC)

Agri-Tech Initiative supports innovation and energy efficiency investments

Eligible Funding

Maximum amount : 100,000 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Grant and FundingOpen

Toronto — Capacity Buyback Program

City of Toronto

Rewards businesses for implementing permanent water-saving measures

Eligible Funding

No Condition

Eligible Industries

Manufacturing
Wholesale trade
Retail trade
Educational services

Types of eligible projects

Environment and Climate

Grant and FundingExpert AdviceClosed

i.d.e.a. Fund

TechAlliance

Funding and support for high potential businesses focusing on a sustainable and green recovery

Eligible Funding

No Condition

Eligible Industries

Manufacturing
Professional, scientific and technical services
Administrative and support, waste management and remediation services

Types of eligible projects

CommercializationEnvironment and ClimateInnovation

Grant and FundingClosed

Agri-Tech Innovation Initiative : Stream 1 – Agri-Tech Innovation

Agricultural Adaptation Council (AAC)

Supports agri-food growth through innovation and energy efficiency

Eligible Funding

Maximum amount : 49,999 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Grant and FundingClosed

Ontario — Biosecurity Enhancement Initiative

Sustainable Canadian Agricultural Partnership (SCAP)

Biosecurity Enhancement Initiative supports agriculture and food sector resiliency

Eligible Funding

Up to 35% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Wholesale trade
Transportation and warehousing

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Grant and FundingClosed

Investments in Forest Industry Transformation (IFIT) — Studies projects

Natural Resources Canada (NRCan)

Funding for forest sector studies

Eligible Funding

Minimum amount : 100,000 $
Up to 50% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovation

Grant and FundingOpen

Sustainable Growth and Adoption Program (SGAP)

Federal Economic Development Agency for Southern Ontario (FedDev)

Supports clean technology adoption and operational sustainability improvements

Eligible Funding

From $40,000 to $100,000
Up to 60% of project cost

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing

Types of eligible projects

TechnologyEnvironment and ClimateInnovation

Researchers And FacilitiesExpert AdviceOpen

Ontario Bioindustrial Innovation Network

Bioindustrial Innovation Canada (BIC)

Chemistry clusters in Sarnia-Lambton and St. Lawrence

Eligible Funding

No Condition

Eligible Industries

Manufacturing
Professional, scientific and technical services

Types of eligible projects

CommercializationTechnologyEnvironment and ClimateInnovation

Frequently asked questions about green manufacturing grants in Ontario

Here are clear answers about Ontario decarbonization funding, utility incentives, and clean technology tax credits for manufacturers.

What projects qualify for Ontario green manufacturing grants?

Eligible projects typically include process electrification, industrial heat pumps, waste heat recovery, high-efficiency motors and VFDs, refrigeration upgrades, energy storage, and carbon capture studies. Programs also support ISO 50001 energy management, audits, digital twins, and AI for energy optimization. Clean fuels, hydrogen-ready equipment, and RNG adoption may be eligible under specific streams.

Can utility incentives be combined with federal tax credits in Ontario?

How do I start an application for industrial electrification incentives?

Which regions in Ontario offer additional industrial energy incentives?

Are SMEs eligible for Ontario decarbonization funding?

What documentation is required for Ontario industrial grants?

How long do Ontario grant approvals take for manufacturers?

Can CCUS or hydrogen feasibility studies receive funding in Ontario?

What are best practices for measurement and verification (M&V)?

Are there grants for circular economy and recycled content in manufacturing?

What else should I know about Grants and Funding for Green Manufacturing and Decarbonization in Ontario?

What is green manufacturing and decarbonization funding in Ontario?

Green manufacturing and decarbonization funding in Ontario refers to grants, incentives, and tax credits that support emissions reduction, energy efficiency, fuel switching, and cleaner production across industrial facilities. Programs target low-carbon manufacturing projects that modernize plants, electrify processes, implement industrial heat pumps, deploy energy storage, and adopt clean fuels and carbon capture, utilization and storage (CCUS). In 2026, organizations can pursue Ontario decarbonization funding, industrial electrification incentives, manufacturing energy efficiency grants in Ontario, clean technology grants, and clean manufacturing tax credits to achieve net-zero manufacturing targets while improving competitiveness.

Why this matters for Ontario industry

Ontario’s manufacturing base spans steel, cement, chemicals, automotive and EV supply chains, battery manufacturing, food processing, plastics, pulp and paper, and advanced metal fabrication. Reducing Scope 1 and Scope 2 emissions is now interlinked with plant reliability, energy cost control, and ESG reporting. Industrial GHG reduction programs, productivity and decarbonization grants in Ontario, and SME sustainability grants help companies meet Ontario Emissions Performance Standards (EPS), prepare for federal Clean Fuel Regulations compliance, and capture export opportunities in low-carbon markets.

Types of support available to manufacturers

Funding mechanisms include:

- Non-repayable contributions and capital grants for equipment retrofits and process changes.

- Utility incentives and industrial retrofit rebates (e.g., IESO Save on Energy incentives, Enbridge Gas industrial incentives).

- Clean manufacturing tax credits and federal clean technology tax credits (including refundable credits).

- R&D-to-commercialization support (e.g., IRAP funding for cleantech manufacturing, Ontario Centre of Innovation programs).

- Pilot and demonstration funding for TRL advancement, measurement and verification (M&V), and digital twins for energy optimization.

- Regional development supports for Northern Ontario industrial energy funding and cluster/consortium grants.

Common eligible cost categories

- Process electrification (electrified boilers, induction heating, infrared curing).

- Industrial heat pumps and high-temperature heat pumps.

- Waste heat recovery and heat integration (heat recovery steam generator, thermal storage).

- Compressed air system upgrades, variable frequency drives, high-efficiency motors, power factor correction.

- Industrial refrigeration upgrades (including ammonia systems) and HVAC optimization.

- Energy management systems (ISO 50001), energy audits for manufacturers, retro-commissioning, smart metering, and AI-driven optimization.

- Carbon capture pilots, CCUS feasibility studies, and carbon utilization.

- Clean hydrogen production, hydrogen-ready equipment, and clean fuels (bioenergy, biogas, renewable natural gas).

- Energy storage incentives (behind-the-meter battery systems), demand response, peak shaving, and load shifting.

Program landscape in Ontario (provincial, federal, and utility)

Ontario companies can combine several program streams to accelerate decarbonization and manage cash flow.

Provincial and regional programs

- Ontario Made Manufacturing Investment Tax Credit (OMMITC) for capital investment that supports productivity and modernization within the province.

- Ontario manufacturing innovation funding through provincial agencies and the Ontario Centre of Innovation (OCI) for clean technology pilots and scale-up.

- Regional development funds and Northern Ontario industrial energy incentives for projects in Sudbury, Sault Ste. Marie, Thunder Bay, and other northern communities.

Utility and system operator incentives

- IESO Save on Energy incentives (industrial) support retrofits, energy performance, and demand-side management, suitable for factories in the Toronto region, Hamilton, Windsor, Kitchener-Waterloo, Niagara, Ottawa, and beyond. Manufacturers frequently ask who qualifies for IESO Save on Energy industrial programs and how to submit an IESO retrofit application for manufacturing.

- Enbridge Gas industrial incentives Ontario provide custom and prescriptive incentives for process improvements, boiler replacement, waste heat recovery, and fuel efficiency. Applicants often seek Enbridge Gas industrial custom incentive application steps and guidance on combining Enbridge and Save on Energy incentives.

Federal programs and tax credits

- Federal clean technology tax credit Ontario (refundable/transferable concepts are relevant to cash flow), stacking with provincial incentives where permitted.

- Strategic Innovation Fund (SIF) Net Zero Accelerator funding in Ontario for large-scale decarbonization, battery and EV supply chain investments, and clean technology manufacturing.

- Low Carbon Economy Fund (LCEF) Ontario projects for industrial retrofits and fuel switching.

- Sustainable manufacturing grants Canada that accept Ontario-based plants, including support for CCUS funding Ontario, clean fuels funding, and hydrogen funding for industry.

- Accelerated capital cost allowance for eligible clean tech equipment to support capex decisions.

Technology pathways commonly funded

Manufacturers can structure projects around high-impact decarbonization levers.

Process electrification and heat

Electrification reduces onsite fossil fuel consumption and enables net-zero manufacturing with cleaner electricity. Priority measures include:

- Electrified boilers and process heating electrification grants in Ontario for ovens, kilns, dryers, and curing lines.

- Industrial heat pump incentives in Ontario for low-to-high temperature needs; high-temperature heat pump grants enable fuel switching for hot water and low-pressure steam.

- Induction heating funding for metal processing and infrared curing energy grants for paint and coatings lines.

- Thermal storage funding and waste heat recovery to stabilize loads and improve energy resilience.

Energy efficiency and energy management

Manufacturing energy efficiency grants in Ontario help deliver immediate savings and robust paybacks:

- Compressed air leak detection and repairs, VFDs on motors, and high-efficiency motors rebates.

- Industrial refrigeration upgrades incentives and HVAC optimization for temperature-controlled environments.

- Process optimization grants, smart factory energy management funding, and ISO 50001 funding for continuous improvement.

- Digital twin for energy optimization grants and AI for energy efficiency funding to identify peak demand reduction opportunities and M&V-ready baselines.

Clean fuels, hydrogen, and RNG

Clean fuels funding in Ontario supports projects deploying renewable natural gas, bioenergy boilers, and hydrogen-ready equipment:

- Clean hydrogen production Ontario funding for pilot-scale electrolysis tied to industrial uses.

- Hydrogen funding for furnaces and process burners, including hydrogen-ready retrofits.

- Bioenergy and biogas for industry Ontario projects that reduce lifecycle emissions and support Clean Fuel Regulations compliance.

Carbon capture, utilization, and storage (CCUS)

Ontario manufacturers—especially in cement, lime, steel, and chemicals—are exploring CCUS:

- CCUS feasibility study grants in Ontario to assess capture technologies and CO2 transport options.

- Carbon capture for cement/steel Ontario and carbon utilization pilot funding for mineralization, chemicals, or fuels.

- Pipeline and CO2 transport studies Ontario for future sequestration and hub development.

Energy storage, demand response, and grid-side opportunities

- Energy storage incentives Ontario (industrial) for behind-the-meter batteries that enable peak shaving and load shifting programs.

- Demand response incentives Ontario industry provide payments for flexible load; manufacturers seek demand response payments for manufacturers Ontario and peak demand reduction incentives Ontario plants.

- Integration with onsite solar for factories and power quality improvements, including power factor correction incentives.

Sector-specific opportunities across Ontario regions

Targeted decarbonization funding aligns with local industry clusters.

Steel, cement, and heavy industry

- Hamilton steel decarbonization funding focuses on fuel switching, DR-electric arc furnaces, waste heat recovery, and CCUS pilots.

- Cement decarbonization grants Ontario prioritize kiln electrification studies, alternative fuels, and carbon capture feasibility.

- Chemical industry emissions reduction grants Ontario support process intensification, heat integration, and pollution prevention funding.

Automotive, EV, and battery supply chain

- Windsor EV manufacturing incentives and battery manufacturing grants Ontario assist with electrified process lines, thermal management, and energy storage integration.

- EV supply chain funding Ontario helps tooling firms and component suppliers deploy efficient ovens, induction heating, and smart controls while meeting export ESG requirements.

Food and beverage, agrifood processing

- London Ontario food processing grants (energy) fund refrigeration upgrades, heat recovery, and high-efficiency steam generation.

- Niagara food processing energy efficiency funding targets cold storage optimization, ammonia refrigeration upgrades, and CHP/cogen optimization incentives.

Advanced manufacturing hubs

- Kitchener-Waterloo advanced manufacturing funding supports automation, digital twins, and AI-driven energy optimization.

- Ottawa cleantech manufacturing funding advances pilot and demonstration projects with university-industry collaboration grants.

- Northern Ontario industrial energy funding addresses mining and mineral processing in Sudbury, Sault Ste. Marie, and Thunder Bay.

Eligibility, application steps, and success factors

Eligibility varies by program but often includes:

- Ontario-based manufacturers with a valid business number and facility address; Indigenous-owned manufacturing funding and women-led and diverse-owned SME green grants may have dedicated streams.

- Evidence of measurable GHG reductions, energy savings (kWh, m3), or peak demand impacts; projects must be additional and meet M&V requirements.

- Technical documentation: energy audits for manufacturers in Ontario, feasibility studies, vendor quotes, engineering drawings, load data, and emissions baselines.

- Financial information: project budgets, matching funds for pilots, attestations, and reporting commitments under program rules.

Step-by-step application guide (typical)

1. Define objectives: Scope 1 or Scope 2 emissions reduction, EPS compliance, productivity plus decarbonization outcomes.

2. Conduct audit or feasibility: identify measures such as electrified boilers, high-temperature heat pumps, waste heat recovery, and compressed air optimization.

3. Build the business case: include baseline, savings estimates, demand response potential, and lifecycle benefits; some seek a sample business case for industrial decarbonization grant Ontario.

4. Confirm eligibility and stacking: review IESO Save on Energy incentives, Enbridge Gas industrial incentives, federal clean technology tax credits, SIF Net Zero Accelerator opportunities, and Low Carbon Economy Fund Ontario streams.

5. Prepare documentation: letters of intent, vendor quotes, M&V plans, GHG inventory, life-cycle assessment (LCA) or product carbon footprint (PCF) where relevant.

6. Submit application: follow grant deadlines Ontario manufacturing, utility application portals, and tax credit claiming rules.

7. Implement and verify: adhere to procurement guidelines, commissioning, measurement and verification (M&V), and reporting timelines.

8. Claim incentives and credits: coordinate milestones to align incentive payments and refundable tax credit claims; consider stackable incentives Ontario where permitted.

Stacking and compliance considerations

- Stacking IESO and federal credits in Ontario can improve ROI; ensure total assistance does not exceed program-specific thresholds.

- Combining Enbridge and Save on Energy incentives Ontario may be possible if measures impact both electricity and gas; clarify interactions to avoid double counting.

- Ontario Emissions Performance Standards (EPS) compliance, carbon pricing cost mitigation programs, and Clean Fuel Regulations can influence project selection and payback.

- Attestation, audit, and reporting requirements in Ontario require clear M&V documentation and third-party verification for large projects.

Budgeting, M&V, and timeline planning

Manufacturers frequently ask about what documents are needed for Ontario industrial grants, timelines for approvals, and average grant amounts for decarbonization in Ontario. Best practice includes:

- Early M&V planning with metering and sub-metering to enable credible savings attribution.

- Technology vendor engagement to validate performance guarantees and integration risks.

- Phase-gating for pilot and demonstration projects, with TRL milestones and go/no-go criteria.

- Scheduling procurement to align with grant deadlines, utility incentive pre-approvals, and construction windows.

- Ensuring cash flow with non-repayable contributions, refundable tax credits for clean tech equipment in Ontario, and accelerated CCA benefits.

Special topics: circular economy, ESG, and workforce

- Circular economy grants Ontario manufacturing support recycled content, industrial waste diversion, and eco-design/eco-innovation for low-carbon products.

- Support for ESG reporting in manufacturing Ontario and funding for LCA and product carbon footprint help suppliers meet buyer requirements.

- Training and upskilling for green jobs funding builds capacity for ISO 50001, energy management, safety, and commissioning of new electrified equipment.

- Indigenous participation funding, diversity-led SME funding, and consortium/cluster funding encourage inclusive growth and regional development.

City and region modifiers for targeted searches

To improve discovery and local relevance, applicants often search for:

- Retrofit funding Toronto region manufacturing; Hamilton steel industry funding; Windsor automotive plant electrification incentives.

- Kitchener-Waterloo advanced manufacturing green grants; Niagara industrial decarbonization grants; Ottawa cleantech manufacturing grants and tax credits.

- Sudbury mining processing emissions reduction funding; Thunder Bay industrial retrofits grants; Northern Ontario manufacturing energy incentives list.

Practical examples of funded measures

- Replacing gas-fired ovens with electric models: funding for IR curing systems in paint lines, induction heating in metal processing, and electrified boilers.

- Waste heat recovery: heat exchangers, heat recovery steam generators, and thermal storage integration for batch processes.

- Compressed air: leak detection and repairs, variable speed compressors, heat-of-compression recovery, and advanced controls.

- Refrigeration: ammonia system upgrades, floating head pressure controls, and high-efficiency condensers.

- Controls and analytics: digital twins, AI optimization, peak shaving, load shifting, and demand response enrollment.

- Power quality: power factor correction incentives and voltage optimization to reduce losses.

Key takeaways for 2026 Ontario projects

- Ontario green manufacturing grants and Ontario decarbonization funding can reduce capex and accelerate time-to-value for industrial retrofits.

- Utility incentives (IESO Save on Energy, Enbridge Gas) remain foundational for manufacturing energy efficiency grants Ontario and custom retrofits.

- Federal clean technology tax credit Ontario and clean manufacturing tax credits Ontario can be stacked with provincial supports, subject to program rules.

- CCUS funding Ontario, hydrogen funding Ontario, and clean fuels funding Ontario are increasingly relevant to steel, cement, chemicals, and large emitters.

- SMEs can access SME sustainability grants Ontario, energy management grants Ontario (ISO 50001), and grant writing support Ontario manufacturing to build capacity.

- Early planning for measurement and verification, LCA/PCF, and ESG reporting helps secure awards and meet attestation requirements.

Conclusion: Building a competitive, low-carbon factory in Ontario

Green equipment rebates Ontario, industrial retrofit rebates Ontario, and non-repayable contributions Ontario can transform payback periods for electrification, heat pumps, CCUS pilots, energy storage, and digital optimization. By aligning projects with EPS compliance, Clean Fuel Regulations, and customer ESG expectations, manufacturers can unlock stackable incentives Ontario while future-proofing operations. Whether pursuing battery manufacturing grants Ontario, EV supply chain funding Ontario, cement decarbonization grants Ontario, or agrifood processing energy efficiency, a structured approach—eligibility confirmation, robust M&V, careful stacking, and timely applications—positions Ontario plants to lead in net-zero manufacturing.