Grant and Funding Programs Offered by Hydro-Québec

Overview of Available Grants and Funding

Hydro-Québec is a leading public utility in Canada, renowned for its significant role in generating and distributing renewable hydroelectric power in Quebec since 1944. Owned by the Government of Quebec, it emphasizes sustainability and socio-economic development through various programs supporting energy efficiency, innovation, and community initiatives.

Hydro-Québec Subsidies for Businesses: Your Complete Guide to Energy Efficiency in Quebec

Introduction: Hydro-Québec's Commitment to Business Energy Efficiency

In Quebec, the abundance of hydroelectricity gives the province a distinct advantage in clean energy. However, optimizing electricity consumption remains a strategic priority for businesses. This approach is not limited to purely economic considerations; it also falls within a broader environmental vision. Energy efficiency Quebec has thus become a cornerstone of the provincial energy transition, offering businesses the opportunity to reduce their carbon footprint while strengthening their competitiveness in the market.

In this context, Hydro-Québec stands as a central player by offering a diverse range of Hydro-Québec subsidies and Hydro-Québec financial aid specifically designed for the business sector. These incentives aim to encourage the adoption of more sustainable technologies and practices, thereby propelling Quebec towards a more responsible energy future. This comprehensive guide aims to serve as a compass for businesses wishing to navigate the landscape of Hydro-Québec subsidies offered to businesses, detailing key programs, eligibility criteria, and essential steps to maximize the available Hydro-Québec financial support.

Hydro-Québec's commitment to business energy efficiency is driven by a dual consideration: economic and environmental. Financial assistance programs are designed to reduce businesses' electricity consumption, leading to significant savings on their bills, while improving their overall energy performance. This approach positions Hydro-Québec not only as an energy provider but also as a catalyst for sustainable development in Quebec. Financial incentives act as a public policy lever, harmonizing the economic interests of businesses with the environmental objectives of the province. Consequently, businesses participating in these programs not only benefit from reduced operational costs; they also proactively contribute to Quebec's eco-responsible image and can distinguish themselves as leaders in sustainable development. This distinction can, in turn, enhance their reputation, attract an increasingly environmentally conscious clientele, and open new business opportunities.

Solutions efficaces Program: A Strategic Lever for Businesses

The Solutions efficaces program constitutes the central pillar of Hydro-Québec subsidies for businesses. It is specifically designed to support equipment modernization and energy consumption optimization across various sectors of activity.

Objectives and scope: Modernize and save

This program offers substantial Hydro-Québec financial support for the implementation of projects aimed at a significant reduction in electricity consumption. It targets a wide range of businesses, whether small, medium, or large, operating in the commercial, institutional, industrial, or agricultural sectors.

The financial aid granted can reach up to 15 ¢ per kilowatthour (kWh) saved annually, with a maximum subsidy of $2M per project. For more complex or innovative initiatives, the "Offre sur mesure" (Customized Offer) component of the program can cover up to 75% of eligible costs, with a raised ceiling of $5M (up from $3M previously) and support of 45 ¢/kWh. This generosity reflects a desire to encourage high-impact projects.

Cost coverage is particularly advantageous: the program can cover up to 90% of eligible costs for businesses subject to G and Flex G rates, and up to 75% for those under G9, M, L, and LG rates. Furthermore, the minimum financial support threshold has been lowered to $500 for small businesses, making the program accessible to a greater number of economic players.

Beyond direct reductions in electricity bills, participating businesses can see improved productivity, realize recurring savings, and meet or exceed current environmental standards.

The structure of the subsidy amounts, which varies (up to 90% for G/Flex G rates, 75% for others) and the program's division into different components (small, medium, and large businesses) reveal a targeted incentive strategy. This segmentation indicates that Hydro-Québec has analyzed the consumption profiles and investment capacities of its clients to develop tailored incentives. Businesses with high consumption (G/Flex G rates) receive greater financial support, as the potential kWh savings they can achieve have a more significant impact on the overall stability and performance of the electrical grid. It is therefore imperative for businesses to know their exact electricity rate to accurately assess the aid they can claim. This segmented approach encourages broader participation by making the program relevant for various sizes and types of operations, thus maximizing the overall impact on energy efficiency Quebec.

The recent increase in financial support and the ceiling of the "Offre sur mesure" signals an acceleration of Hydro-Québec's commitment. Recent information indicates that financial support for several types of heat pumps has been increased, some even doubled, and the "Offre sur mesure" ceiling has risen from $3M to $5M. This enhancement is not just an update; it represents an intensification of Hydro-Québec's efforts to stimulate the adoption of energy efficiency. This decision can be interpreted as a response to more ambitious government objectives, such as the Green Economy Plan 2030, to growing market demand, or to the recognition that the initial costs of energy-efficient technologies can still be a barrier for some businesses. This evolution means that businesses that previously deemed certain projects unprofitable might reconsider their options, thus opening an increased window of opportunity for investments in energy efficiency. It is a clear signal that Hydro-Québec is ready to invest more to achieve its consumption reduction and decarbonization goals.

Business energy analysis: The foundation of any successful project

Before undertaking modernization work, a thorough business energy analysis is a fundamental step. Hydro-Québec recognizes this need and strongly encourages this approach by offering Hydro-Québec financial support for conducting detailed audits of energy consumption in buildings or processes.

This support can amount to up to $60,000. More specifically, it can cover up to 40% of the study cost (with a maximum of $20,000) after approval of the energy analysis, and up to 60% (with a maximum of $30,000) when the recommended energy efficiency measures are actually implemented.

The energy analysis helps identify the most profitable potential projects, target the most effective measures, and ultimately maximize future energy savings. Hydro-Québec's subsidy for energy analysis is not just aid, but a strategic investment. The fact that the aid is distributed, with a portion paid for the study itself and another upon implementation of the measures, demonstrates Hydro-Québec's desire to ensure that studies do not remain mere theoretical reports but lead to concrete projects. This structure reduces the initial financial barrier for businesses that might hesitate to invest in a costly analysis. For businesses, this means that investment in planning is not only encouraged but also substantially supported. A rigorous business energy analysis is the foundation of a successful project, as it ensures that Hydro-Québec subsidy funds are allocated to the most impactful and cost-effective measures, thereby optimizing energy efficiency Quebec and ensuring maximum return on investment.

Eligible energy-efficient measures: Concrete solutions for your sector

The Solutions efficaces program encompasses a wide range of eligible energy-efficient measures, with over 200 predefined options adapted to various sectors of activity.

The installation or replacement of a subsidized heat pump represents a flagship measure of the program. This includes air-source heat pumps (whether split-system, on air conditioners, or ENERGY STAR® certified), geothermal heat pumps for specific zone heating, and hydronic heat pumps. It is important to note that financial support for these technologies has recently been increased, some even doubled, particularly for geothermal heat pumps on mitigated water loops.

The program also supports the installation of a multitude of efficient equipment and systems in commercial, institutional, industrial, and agricultural buildings. This can include refrigeration systems, high-efficiency lighting solutions (such as LED luminaires), as well as optimized heating, ventilation, and air conditioning systems.

Support is also offered for the automation of power demand management (PDM) measures, allowing businesses to maximize their PDM credits and simplify the management of their energy operations. Finally, the program encourages heat recovery projects and the integration of solar energy solutions, demonstrating a comprehensive approach to energy optimization.

The diversity of eligible measures in the program reflects a holistic approach to energy efficiency. The program is not limited to a single technology, such as heat pumps, but encompasses a wide range of interventions, including insulation, caulking, heat recovery, solar energy, and power demand management. This breadth, with over 200 predefined measures, indicates that Hydro-Québec recognizes that energy efficiency Quebec is a complex ecosystem where a combination of several complementary interventions is necessary to achieve maximum impact. This perspective allows businesses to consider integrated projects, combining various measures to maximize savings and Hydro-Québec financial aid. Such an approach promotes further optimization of their facilities and a more significant reduction in their consumption, thus contributing more substantially to decarbonization efforts.

Application process and OSE tool: Simplifying your procedures

To facilitate access to Hydro-Québec financial support, the Solutions efficaces (OSE) calculation tool has been developed. This is a PC application designed to simplify the evaluation and acquisition of this aid. This tool allows businesses to confirm the eligibility of the measures they are considering, estimate the amount of potential aid, and submit an application in a few clicks.

The process via the OSE tool involves several key steps: registering the building concerned, selecting the energy efficiency measures envisioned, calculating the estimated Hydro-Québec financial support, determining the final project, and finally, submitting the application. It is important to note that, although the OSE tool allows for the evaluation of potential aid at any time, the formal submission of the project to Hydro-Québec generally takes place once the work has been completed.

For projects submitted under the Medium and Large Businesses component, rigorous documentation is required. This includes providing copies of all purchase and installation invoices for each energy efficiency Quebec measure implemented, in addition to other specific documents. The OSE tool is regularly updated to incorporate changes in financial support and the addition of new measures, including the integration of the ENERGY STAR® API to facilitate the entry of required data.

A facilitating aspect of the program is the role of partners. Businesses can collaborate with consulting engineering firms, specialized companies, or aggregators. These experts can not only guide the company through the technical complexities of the projects but also simplify administrative procedures, including submitting OSE files on their behalf.

The implementation of the OSE tool indicates Hydro-Québec's willingness to democratize access to Hydro-Québec subsidies. The creation of a calculation tool that simplifies the evaluation and submission of applications suggests a clear intention to make the process more transparent and accessible, even for businesses without in-depth internal expertise in energy efficiency. The fact that external partners can submit applications on behalf of their clients reinforces this idea of facilitation and accessibility. This simplification reduces the administrative burden for businesses, which is likely to encourage more of them to participate in the programs. It also allows businesses to better plan their investments by having a clear estimate of potential Hydro-Québec financial aid even before work begins, which is a crucial factor in financial decision-making and project management.

LogisVert Program: An Opportunity for Installation and Construction Businesses

The LogisVert program, although primarily aimed at the residential and multi-unit housing sectors, represents a significant opportunity for installation and construction businesses that wish to play an active role in Quebec's energy transition.

Role of installation companies: Actors in the energy transition

Installation companies are essential players in the LogisVert program, as they are responsible for proposing and installing energy-efficient solutions for their residential and multi-unit property clients.

To encourage their participation and recognize their contribution, Hydro-Québec offers direct incentive remuneration to installation companies. For example, they can receive $1,000 for each subsidized heat storage unit sold and installed, whether or not this unit is combined with a central heat pump.

The application process for installation companies involves choosing the measures for which they wish to offer Hydro-Québec financial aid, accessing the LogisVert portal to consult potential amounts, referring to the program's terms and conditions, completing the application form, and submitting all required documents, such as the Régie du bâtiment du Québec (RBQ) license, detailed invoices, and photos of the installed equipment.

The LogisVert program acts as a catalyst for the green economy by stimulating the installation sector. By offering direct incentives to installation companies, such as the $1,000 remuneration per heat storage unit, Hydro-Québec uses these companies as multipliers to reach a vast audience of residential property owners. By subsidizing installers, Hydro-Québec not only stimulates demand for energy-efficient equipment; it also contributes to the development and specialization of a skilled workforce in energy efficiency Quebec. This approach creates a beneficial synergy between Hydro-Québec, installation companies, and end consumers. It promotes the growth of companies specializing in energy-efficient solutions, strengthens their role in the energy transition, and ensures better dissemination of green technologies to the general public, thereby contributing significantly to achieving the objectives of the Green Economy Plan 2030.

LogisVert financial aid for clients: Subsidized energy-efficient appliances

Under the LogisVert program, installation companies are responsible for directly deducting Hydro-Québec financial aid from their clients' invoices, which significantly simplifies the process for the end consumer.

For the installation of a geothermal subsidized heat pump, the financial aid is $750 per 1,000 BTU/h. It should be noted that as of August 25, 2025, this aid will be capped at $54,000 per address. These devices are particularly efficient and can generate savings of 25% to 35% on home heating costs.

The installation of a subsidized heat storage unit entitles the client to $15,000 in aid when this system replaces a central heating system with a clean and renewable solution. If a heat storage unit is combined with a central heat pump, the financial aid increases to $22,000. The associated central heat pump must have a minimum capacity of 24,000 BTU/h to be eligible.

The LogisVert program also offers a home insulation subsidy and caulking financial aid of $1,500 for combined roof insulation and caulking work. These measures are crucial for the building envelope and can reduce heat loss by up to 25%.

LogisVert program eligibility: Criteria for homes and businesses

Eligibility for the LogisVert program is subject to specific criteria for both businesses and homes.

An eligible business must be an installation company or a construction company, particularly for new homes. The company must be registered with the Registraire des entreprises du Québec and hold the appropriate licenses from the Régie du bâtiment du Québec (RBQ). For heat storage unit installations, an additional condition is that the company must be on the list of authorized Steffes companies, the manufacturer of eligible models.

As for the eligible dwelling, it must be a house or a multiplex (up to 19 units for new constructions) located in Quebec, habitable year-round, and supplied with electricity by Hydro-Québec's grid, an autonomous, municipal, or cooperative grid. A measure is eligible only once per dwelling. For insulation and caulking work, the dwelling must be primarily heated by electricity.

Specific conditions for work and equipment are also rigorous. Equipment must be new, purchased in Quebec, and installed in an eligible dwelling. Heat storage units must be specific models (Steffes 4120 or 4210, or an approved equivalent) and must be programmed so that their heating elements do not operate during peak periods (6 a.m. to 9 a.m. and 4 p.m. to 8 p.m., Eastern Standard Time) throughout the year. High-efficiency heat pumps must be on Hydro-Québec's list of eligible heat pumps. For roof insulation, insulating material must be installed to achieve a minimum thermal resistance of RSI 8.8 (R-50) over 100% of the surface. Caulking must target all sensitive areas of the building envelope, such as windows, doors, access hatches, electrical outlets, and fireplaces.

The strict eligibility conditions imposed by Hydro-Québec guarantee the quality and impact of investments. The requirements for businesses (Registraire registration, RBQ licenses, authorized installer lists) and equipment (new, purchased in Quebec, certified, specific programming for accumulators) are not mere administrative formalities. They aim to ensure that the work is carried out by competent professionals and that the installed equipment is of high quality, safe, and truly efficient. The restriction on the use of accumulators during peak hours is a power demand management measure that contributes to the stability of the electrical grid. All these conditions reinforce confidence in the program and ensure that Hydro-Québec financial aid is used optimally to maximize energy efficiency Quebec. For businesses, this implies the need to ensure full compliance and to collaborate with certified partners, which can also serve as a guarantee of quality for their own clients.

It is also important to understand the complementarity of the programs. The LogisVert program generally cannot be combined with other provincial and federal subsidies for the same equipment, with the notable exception of the electricity conversion component of the Chauffez Vert program for heat storage units, where the client applies. Furthermore, the Rénoclimat program can be complementary to LogisVert for certain works. This nuance is crucial and indicates a certain coordination between different levels of government and energy distributors. The objective is to maximize incentives without creating duplication, while allowing strategic combinations of funding. Businesses (and their clients) must therefore be well-informed of the cumulation rules to optimize their energy renovation financial aid. An energy efficiency project can potentially benefit from multiple funding sources if the measures are distinct or if complementarity agreements are in place, thus increasing the overall return on investment of the project.

Innovative Projects Program and Customized Offers: For Large-Scale Initiatives

Hydro-Québec recognizes that some energy efficiency Quebec projects are inherently complex and do not always fit within the framework of standard programs. For these large-scale initiatives, specific offers are put in place to support innovation and the realization of high-impact projects.

Innovative Projects Program

This program offers significant Hydro-Québec subsidies to developers and builders who undertake projects aimed at optimizing the energy consumption of several buildings through the integration of high-performance technologies and innovative electromechanical systems.

Eligibility conditions are rigorous to ensure the impact of the projects. Initiatives must involve the construction or major renovation of several buildings, whose total usable area must exceed 50,000 square meters. An energy network must be established to connect and supply all buildings, and heat pumps or the recovery of thermal waste must necessarily cover at least 80% of the heating needs for spaces and domestic hot water for all buildings. Furthermore, the energy performance of the entire project must be improved by at least 25% compared to a reference scenario established by Hydro-Québec.

The maximum Hydro-Québec financial support for this program can reach up to $12 million per project, an amount calculated based on the kilowatthours saved. A maximum incentive remuneration of $50,000 is also provided for the partner involved in the project.

Customized Offer

The Customized Offer is specifically designed for energy efficiency Quebec measures that are innovative, complex, or personalized and that are not eligible for the simplified offers of the Solutions efficaces program.

Hydro-Québec financial support under this offer can cover up to 75% of eligible costs, with a maximum ceiling of $5M. The amount of aid is calculated at 45 ¢ per kilowatthour saved. An essential prerequisite is obtaining preliminary project acceptance from Hydro-Québec before work begins.

Technological and Commercial Demonstration

This distinct program offers Hydro-Québec financial aid for validating the technical or commercial applicability of innovative measures for electrical energy savings or power demand optimization. Financial support can reach up to 75% of the total eligible cost, with a ceiling of $500,000.

Hydro-Québec's strategy, through the "Innovative Projects," "Customized Offer," and "Technological and Commercial Demonstration" programs, aims to stimulate innovation and support high-impact projects. The high subsidy ceilings (up to $12M and $5M) and significant cost coverage (up to 75%) demonstrate that Hydro-Québec is willing to take financial risks to support the experimentation and deployment of cutting-edge energy efficiency Quebec solutions. The requirement for superior energy performance (25% compared to the reference) for Innovative Projects pushes businesses towards excellence and the adoption of best practices. This approach positions Hydro-Québec as a strategic partner for businesses looking to innovate in the energy sector. These programs encourage not only the adoption of existing technologies but also the development and validation of new approaches, thereby contributing to overall technological advancement and Quebec's competitiveness in the green energy sector.

Energy efficiency Quebec: Economic and environmental benefits

Investing in energy efficiency Quebec with Hydro-Québec's support generates benefits that extend far beyond simple savings on electricity bills.

Significant reduction in electricity bills

This is the most immediate and tangible advantage. Businesses can achieve recurring savings by optimizing their energy consumption. Concrete examples illustrate annual bill reductions of over $23,000 through the integration of heat pumps.

Accelerated return on investment and increased profitability

Hydro-Québec financial support significantly reduces the initial cost of projects, making the investment profitable more quickly. In 2024, Hydro-Québec paid an impressive $177.8M in financial support, thus supporting over 6,800 building consumption optimization projects.

Contribution to Quebec's decarbonization and eco-responsible brand image

By adopting eligible energy-efficient measures, businesses directly contribute to the reduction of greenhouse gas emissions and actively participate in Quebec's collective decarbonization effort. This approach also helps enhance their brand image, an asset increasingly valued by environmentally conscious consumers and partners.

Power demand management (PDM)

Participation in power demand management (PDM) offers allows businesses to receive credits on their bill by reducing their consumption during winter peak periods. During the 2024-2025 season, over 1,900 businesses benefited from the PDM option, receiving a total of $51.8M in credits.

Concrete examples of successful projects and financial support granted

Hydro-Québec highlights numerous project scenarios by sector, illustrating the concrete benefits and financial support granted. These examples demonstrate the diversity of applications and the extent of available aid:

Commercial Market: An office building received $453,405 for the implementation of various energy-saving measures. A refrigeration and lighting project in a grocery store received $56,845. A multi-unit residential building obtained $294,670 for heating and lighting projects.

Commercial Market – Small Businesses: A retail business received $6,775 for energy efficiency measures, a restaurant $12,960, a commercial office $17,375, a fine grocery store $12,145, and a garage $5,925.

Industrial Market: An industrial refrigeration project in a food processing plant received $49,135. A notable case is IPL North America Inc., which received Hydro-Québec financial support of $315,477 to modernize its equipment.

Institutional Market: A school obtained $372,975 for a heating and lighting project. A high school received $796,060 for the implementation of various energy-saving measures, and an arena $69,145.

Greenhouse Market: The installation of two air-source heat pumps received $66,750. A project for the installation of three geothermal heat pumps coupled with a hydro-accumulation tank received $1,109,611. A larger project for the installation of four air-source heat pumps coupled with a hydro-accumulation tank, as well as LED photosynthesis lighting, obtained $3,799,660.

Project Partners / Aggregators: The installation of LED luminaires and regulation received $24,865. Various energy-saving measures obtained $149,005. A project for the sale and installation of LED lighting products in several businesses received $37,720. A heating and lighting project in a school obtained $386,390.

The benefits of these programs extend far beyond simple financial savings, creating multidimensional added value for businesses. The available information highlights not only cost reductions but also improved productivity, compliance with environmental standards, enhanced brand image, and credits obtained through power demand management. This demonstrates that energy efficiency Quebec is perceived as a global strategic investment, not just an expense to be reduced. Businesses that engage in these programs are not mere beneficiaries of subsidies but true investors in their own sustainability and competitiveness. The cumulative benefits – savings, improved image, operational performance – create a virtuous cycle that strengthens their market position and their resilience to current and future energy and environmental challenges.

Practical tips for maximizing your Hydro-Québec subsidies

To make the most of Hydro-Québec subsidies and Hydro-Québec financial aid, a methodical and proactive approach is strongly recommended.

Importance of planning and energy analysis

As previously emphasized, conducting a thorough business energy analysis is the crucial first step. This analysis helps identify the most relevant savings opportunities and structure a solid project, thereby increasing the chances of obtaining Hydro-Québec financial support.

Collaboration with accredited professionals and partners

Hydro-Québec actively encourages collaboration with consulting engineering firms, specialized companies, and aggregators. These experts can not only guide the company through the technical complexities of the projects but also simplify administrative procedures, particularly through the use of the OSE tool.

Monitoring program updates and conditions

Hydro-Québec programs, such as Solutions efficaces and LogisVert, are dynamic and subject to regular updates. It is therefore essential to stay informed of the latest changes regarding financial support, eligible energy-efficient measures, and eligibility conditions to avoid missing any opportunities.

Rigorous documentation

Meticulous retention of all purchase and installation invoices, as well as other required documents, is imperative for the success of a subsidy application. Complete and accurate documentation greatly facilitates the approval process.

Understanding cumulation rules

Checking the possibility of combining financial aid with other government programs (e.g., Rénoclimat, Chauffez Vert) can optimize the overall project financing. A well-thought-out cumulation strategy can maximize the return on investment.

The professionalization of the application process is a decisive factor for success. Hydro-Québec's emphasis on conducting a business energy analysis, collaborating with accredited professionals (RBQ license holders, registered with the Registraire des entreprises), and rigorous documentation (detailed invoices) clearly indicates that the organization expects well-structured and compliant projects. The fact that partners can submit applications via the OSE tool reinforces the idea that expertise is valued and even encouraged. Businesses that invest in professional planning and surround themselves with experts significantly increase their chances of obtaining Hydro-Québec subsidies. This approach also ensures that projects are technically sound and truly maximize energy efficiency Quebec, which helps avoid costly errors and delays in project implementation.

Conclusion: An energy-efficient and prosperous future for Quebec businesses

Hydro-Québec subsidies represent an unprecedented opportunity for Quebec businesses to modernize their facilities, reduce their operating costs, and actively contribute to the province's energy transition. Whether through the Solutions efficaces program for large-scale projects, or the LogisVert program for installation and construction businesses, Hydro-Québec financial aid is substantial and diversified. It covers a wide range of eligible energy-efficient measures, from subsidized heat pumps to subsidized heat storage units, as well as home insulation subsidies and caulking financial aid.

Energy efficiency Quebec is no longer a simple option, but an essential strategic and economic necessity. Hydro-Québec positions itself as a committed partner, offering significant Hydro-Québec financial support and tools like OSE to facilitate every step of the process. It is imperative for businesses of all sizes to explore these opportunities, conduct a thorough business energy analysis, and implement their projects. By doing so, they will not only optimize their own operations but also contribute to building a greener and more prosperous future for all of Quebec.

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