P.E.I. government reducing many of its energy efficiency rebates as of Monday

Prince Edward Islanders who invest in some energy efficiency measures will get lower rebates from the provincial government starting Monday, while amounts offered to help pay for insulation and window and door replacement will go up. 

The province announced the changes to its Net Zero and efficiencyPEI rebates on Thursday, after it paused accepting new applications for some programs earlier in the year. 

"We're trying to balance fiscal responsibility — staying within the budgets that we have in the division — while maximizing our return on investment," said Derek Ellis, the director of sustainability for the province's Department of Environment, Energy and Climate Action. 

That means "moving some investments away from some of the poorer-performing programs from an energy savings and greenhouse gas emission reductions perspective and over to the higher-performing programs," he said.

As a result, the amount of money Island homeowners will get for installing heat pumps, buying electric vehicles and putting in solar panels is set to decrease. 

The province will also pause new applications for free heat pumps, free insulation and free electric hot water heaters due to high demand, a news release said. 

The province measures the cost effectiveness of its programs based on dollar spent per ton of greenhouse gas emission elimination, as well as dollar per kilowatt hour saved, Ellis said. 

"We have a good idea of how [programs] perform over time and have made some changes in response to that," he said. 

The province has seen a lot of uptake on its heat pump and solar panel rebates, Ellis said, adding that the province is happy to continue offering rebates to homeowners on those items, at a lower rate. 

The heat pump rebate for residential properties is set to decrease from $1,200 to $900 per unit, while the solar panel program will see a change in incentive rate and a rebate capped at $5,000 for solar panels installed on a home, compared to the prior $10,000 cap.   

People wanting solar panels who were previously approved by the province will get the old amount, while anyone who applied on or after Jan. 8, 2025, will get the new amount if they are deemed eligible.

"Incentives and caps for commercial and agricultural clients will remain the same," the news release adds with regard to solar panels.

"Rebates on energy-efficient equipment for business, community, commercial and industrial buildings [are] increasing, including air source heat pump rebate increasing from $600 to $900. Rebates are also increasing for selected lighting and for packaged terminal heat pumps." 

Rebates for the purchase of electric or plug-in hybrid vehicles have been popular, particularly in Charlottetown and Summerside, Ellis said.