Many Canadians are feeling the pinch as costs rise. From higher heating costs to soaring electricity prices, utilities are becoming a bigger part of household budgets. However, despite rising costs, there are ways to bring these bills down without sacrificing your comfort.

Some simple changes can lead to savings, and some support programs are available to assist Canadians with their utility costs. Whether you’re a homeowner, renter, or landlord, lowering your monthly expenses can help you stretch your budget further.

---

Key Takeaways

• Lowering your thermostat temperature or unplugging devices when not in use can noticeably lower your bills.
• Some rebates, grants, and support programs are available at the federal and provincial levels to help lower energy costs.
• A refinance may help fund larger efficiency upgrades that save money long-term.

---

Why Canadian Utility Bills Are Rising

Energy prices are up across much of the country, driven by several overlapping factors. Increased demand due to extreme weather events like heatwaves pushes usage higher and strains aging systems. Inflation and global supply chain issues have led to higher operational costs for utility providers. Carbon pricing, which applies a price to carbon pollution, also shows up on energy bills when that energy is generated from fossil fuels. 

Energy Poverty 

As energy costs rise, they become more unaffordable for many households. Energy poverty can lead to the disconnection of utilities or the need to choose between energy and other necessities. Households in Canada are considered energy poor if 10% or more of their household’s after-tax income is spent on electricity and fuel. 

Based on the 2021 Census, 5.6% or 822,000 of Canadian households were considered to be energy poor. Of those, single households and dwellings that required significant repairs were nearly twice as likely to be energy poor compared to all households.

Easy Ways to Lower Your Utility Bills Today

You don’t need to do a complete home retrofit to see a reduced energy bill. Many of these changes can be done in just a few minutes and could result in meaningful savings over time. By being more mindful of how and when you use electricity, water, and heating or cooling systems, you’ll start to see your energy bills come down naturally.

• Lower your thermostat in winter by 1 to 2 degrees Celsius when you’re home, and set it even lower when you sleep or are away. 
• Set your air conditioning to a slightly higher temperature when you’re home and higher when away. Even a few degrees can reduce energy use and ease the load on your system.
• Use fans before turning on the air conditioning, and close blinds to keep direct sunlight out.
• Avoid using your oven during peak heat in summer. Try an air fryer, microwave, or BBQ instead.
• If your electricity is billed using time-of-use (TOU) pricing, try to shift household tasks like using washers, dryers and dishwashers to off-peak times when rates are lower. 
• Wash clothes in cold water and hang dry whenever possible.
• Unplug small appliances when not in use.
• Use power bars for electronics and switch them off when not in use.

Low-Cost Upgrades That Pay Off 

If you can spend a little money upfront, several affordable upgrades can help you conserve energy and save money on your utility bills. These improvements are easy to install yourself or can be done quickly by a contractor. The goal here is to tighten up your home’s energy performance without committing to a full, large-scale renovation. Even small changes can create a noticeable difference in how much energy you use day to day.

• LED light bulbs use around 75% less electricity than incandescent bulbs and last much longer.
• Weather stripping and draft stoppers around doors and windows to prevent air leaks.
• Caulking visible cracks near doors and windows can seal areas where cold and hot air may leak through.
• Installing a smart thermostat allows for more precise control over heating and cooling, adapting to your schedule.

Home Improvements to Cut Energy Use

If you’re planning larger upgrades or renovations, some changes can help you significantly cut utility costs. Consider rolling these upgrades into your mortgage during a refinance, especially if you have built up equity. A slightly larger loan could pay off long-term if it leads to lower energy usage, plus some improvements will also increase your home’s value.

• Switching to newer Energy Star-certified appliances can help reduce energy consumption.
• Upgrading insulation in attics, basements, and walls improves your home’s ability to retain heat.
• Replacing old windows helps reduce drafts and keep both heating and cooling costs down.

Utility Rebate and Assistance Programs in Canada

Eligible Canadians can access programs designed to help make energy-efficient upgrades more affordable, reduce monthly utility costs, and support sustainable living. Whether you’re replacing windows, upgrading a heating system, or improving insulation, there’s likely a program that can help offset the cost. 

Some municipalities may also have assistance programs available. It’s worth checking with your local government or utility provider to see what additional support you might qualify for if you’re struggling with high utility costs.

The Government of Canada provides a list of incentives related to energy efficiency by province and territory, municipality and from major electric and gas utility providers, so you can easily see the programs available in your area.

Federal Programs

• Canada Greener Homes Initiative: Offers various programs for home retrofits that help homeowners make their homes more energy efficient.

Provincial Programs

Ontario 

The Save on Energy Energy Affordability Program, combined with Enbridge’s Home Winterproofing Program (HWP), offers eligible residents a free energy needs assessment to identify opportunities to save energy, receive upgrades and replace eligible appliances. The program also supplies Energy Saving Kits for eligible households that include easy-to-install products to help reduce energy costs. 

The Ontario Electricity Support Program (OESP) helps qualifying households by reducing the cost of their monthly electricity bill through a monthly credit that is applied directly to their bill. Amounts vary based on household size and combined after-tax incomes. 

The Ontario Energy Board Low-income Energy Assistance Program (LEAP) helps households behind on their electricity or natural gas bills with emergency financial assistance to keep services from being disconnected. 

Quebec

Hydro Québec offers various financial assistance programs to help households implement energy efficiency measures to reduce energy use and bills. Other programs in partnership with the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (MELCCFP) help qualifying households reduce energy usage. 

Alberta

The Utilities Consumer Advocate (UCA) provides guidance and cost comparison tools, with a list of municipalities that have programs offering financial assistance if you need help with your utility bill costs. 

British Columbia

BC Hydro and FortisBC offer energy-saving kits filled with easy-to-install products to help save on heat, water and electricity costs. 

FortisBC also offers rebates and loans for energy efficiency upgrades. Rebates include Energy Star appliances, EV charging stations, electric heat pumps and water heaters, insulation, and more. 

The Better Homes BC Energy Savings Program helps qualifying households make energy-saving home upgrades. The program provides rebates that may cover up to 100% of the costs associated with eligible upgrades.

Other Provinces and Territories

Check your local utility providers or government websites for rebates and programs they may offer. Most provinces have assistance programs set up through energy efficiency agencies to help eligible residents reduce energy costs.

How Mortgage Refinancing Could Help With Energy Upgrades

If you’re a homeowner with equity in your property, you could use a mortgage refinance to fund major energy-efficient upgrades. This allows you to access cash at a lower interest rate than using credit cards or personal loans.

Energy-efficient improvements boost your home’s value, improve comfort, and reduce future energy costs. Just make sure the long-term savings from lower utility bills and potential rebates outweigh the upfront refinancing costs.

Frequently Asked Questions (FAQ) About Saving Money on Your Utility Bills

Final Thoughts

There are a variety of ways to lower your energy bills, from quick adjustments to your thermostat to more costly and time-consuming home retrofits. Whether you want to take advantage of rebates, protect yourself from rising utility costs, or use your HELOC or a mortgage refinance to fund upgrades, having the right strategy in place can help you save money in the long run.

If you’re ready to explore how refinancing or long-term financial planning could help improve your home’s energy efficiency and lower your costs, talk to a nesto mortgage expert today. We’ll walk you through the options that best fit your goals and help you build a plan that supports your lifestyle now and down the road.

---