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Toronto — Capacity Buyback Program
Last Update: March 4, 2026
Toronto, Ontario, Canada
Rewards businesses for implementing permanent water-saving measures
Grant and Funding
Overview
The Toronto Capacity Buyback Program offers a one-time cash rebate of up to 30 cents per litre of water saved per average day to industrial, commercial, and institutional organizations that implement permanent water-saving measures. The program aims to encourage water conservation through free water audits and supports upgrades such as cooling towers, boilers, refrigeration, process equipment, and other site-specific water efficiency improvements.
At a glance
Funding available
Financing goals
- Buying or selling a company
- Obtain certifications
- Renovate your business/factory
Eligible Funding
- No Condition
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
- Wholesale trade
- Retail trade
- Educational services
- Health care and social assistance
- Arts, entertainment and recreation
- Accommodation and food services
- Other services (except public administration)
- Public administration
Location
- Toronto
- Ontario
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Non-profit candidates
Sector of operation
- Environment
- Economic, Social and Community Development
Target groups
- Business owners / entrepreneurs
- Nonprofits / charities
Revenue structures
- All structures
Scope
- Municipal
Activities funded
- Implementation of permanent water-saving measures in industrial, commercial, or institutional operations.
- Upgrading water efficiency in process equipment, such as cooling towers, boilers, and refrigeration equipment.
- Adoption of site-specific solutions like grey water reuse or rainwater harvesting systems.
- Execution of recommendations identified in professional water audit reports to reduce overall water consumption.
Examples of admissible projects:
$ 3,721
Retrofit of cooling towers to achieve significant water savings
$ 11,349
Execution of water audit recommendations in small plastics factory
$ 6,832
Upgrade of commercial boiler system for water conservation
$ 1,242
Upgrade of restaurant dishwashing equipment for efficient water use
Eligibility
- The company must be an industrial, commercial, or institutional entity located in Toronto.
- The applicant must consume up to 15,000 m3 of water per year to be eligible for the free audit.
- The applicant must be willing to implement permanent water-saving measures identified during the audit.
Who is eligible?
- Industrial organizations
- Commercial organizations
- Institutional organizations
Who is not eligible
- Organizations seeking incentives for domestic water fixtures, irrigation systems, or rain barrels, as these upgrades are not eligible for cash incentives under this program.
Eligible expenses
- Upgrades to cooling towers to improve water efficiency.
- Improvements or replacements of boilers for water conservation.
- Enhancements to refrigeration equipment to reduce water use.
- Modifications to food service equipment for water savings.
- Upgrades to process equipment and implementation of site-specific water-saving measures, such as grey water reuse or rainwater harvesting systems.
Eligible geographic areas
- Companies located in the City of Toronto.
How to apply
1
Indicate your interest
- Contact the City of Toronto to express your interest in the Capacity Buyback Program
- You can email savewater@toronto.ca or call 416-392-7000
2
Determine eligibility and options
- The City will assess your eligibility for the program
- If eligible, a professional engineer will be scheduled for a water use evaluation
3
Complete water audit and receive report
- An engineer will conduct a detailed water audit at your facility
- You will receive a report with suggested process or equipment changes and estimated water savings
4
Implement water-saving measures
- Review the water audit report and select which recommendations to implement
- Proceed with execution of selected water-saving measures
- Contact the City if you need support or further discussion
5
Verify implementation and results
- Fill out and submit the Notice of Completion form after implementing each measure
- The City will arrange a site visit to verify the water savings achieved
6
Receive financial incentive
- Upon successful verification, receive a one-time cash rebate based on water saved
- The cheque will be issued for up to 30 cents per litre of water saved per average day
Additional information
- Professional engineering support is provided for the water audit process.
- Participants receive a detailed report outlining potential water-saving measures and estimated savings.
- The program offers both financial incentives and long-term utility cost savings benefits.
Contacts
savewater@toronto.ca
416-392-7000
