
Toronto — Capacity Buyback Program
Last Update: July 22, 2025
Toronto, ON
Rewards businesses for implementing permanent water-saving measures
At a glance
Eligible Funding
- No Condition
Timeline
- Unspecified
Financing Type
Grant and Funding
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
Funds Providers
Unspecified
Program status
Open
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.
Financing terms and conditions
- One-time cash rebate of up to $0.30 per litre of water saved per average day, based on implemented permanent water savings measures.
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
Frequently Asked Questions about the Toronto — Capacity Buyback Program Program
Here are answers to the most common questions about the Toronto — Capacity Buyback Program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Toronto — Capacity Buyback Program?
How much funding can be received?
What is the deadline to apply?
Is the Toronto — Capacity Buyback Program a grant, loan, or tax credit?
Who are the financial supporters of the Toronto — Capacity Buyback Program?
Who is eligible for the Toronto — Capacity Buyback Program program?
Who can I contact for more information about the Toronto — Capacity Buyback Program?
Where is the Toronto — Capacity Buyback Program available?

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