Why Canadian Electricity Bills Are High
Canadian electricity rates vary enormously by province — from among the cheapest in the world (Manitoba, Quebec) to expensive (Nova Scotia, PEI). But regardless of your rate, consumption habits are within your control.
| Province | Average Rate (cents/kWh) |
|---|---|
| Quebec | 7–9¢ |
| Manitoba | 9–11¢ |
| British Columbia | 11–13¢ |
| Alberta | 10–16¢ (variable) |
| Ontario | 9–18¢ (time-of-use) |
| New Brunswick | 13–17¢ |
| Nova Scotia | 17–22¢ |
| PEI | 17–20¢ |
| Newfoundland | 14–17¢ |
Average Canadian household consumption: 10,000–12,000 kWh/year, costing roughly $1,200–$2,200/year depending on province and usage.
Highest-Impact Changes
1. Switch to a heat pump for space and water heating
Electric resistance heating (baseboard heaters, electric furnaces) is inefficient — 1 kWh of electricity = 1 kWh of heat. A heat pump delivers 2.5–4 kWh of heat per kWh of electricity consumed.
For an all-electric home spending $2,000/year on heating, upgrading to a cold-climate heat pump can reduce that to $600–$900/year — saving $1,100–$1,400/year. Most provinces offer rebates of $2,000–$10,000.
See our heat pump costs and grants guide for more detail.
2. Upgrade your hot water heater
Electric hot water heaters are the second-largest electricity user in many homes. Options to reduce costs:
| Option | Annual Cost (vs. standard electric) | Notes |
|---|---|---|
| Heat pump water heater | 60–70% less | ~$1,800–$2,500 installed; rebates available |
| Timer on existing heater | 10–15% less | Heat only during off-peak hours |
| Lower temperature setting | 5–10% less | Set to 55°C (not lower due to Legionella risk) |
| Insulation wrap | 3–5% less | Available for older models |
3. Take advantage of time-of-use rates
If your province offers time-of-use or tiered pricing, shift high-electricity tasks to off-peak hours:
| Task | Peak (avoid) | Off-Peak (target) |
|---|---|---|
| Dishwasher | Weekday 7–11am, 5–9pm | After 9pm, weekends |
| Washer/dryer | Same | Same |
| EV charging | Same | Set timer to charge overnight |
| Pool pump | Same | Same |
Ontario households on TOU rates can save $200–$400/year purely by shifting timing.
Appliance and Lighting Upgrades
LED lighting
LEDs use 8–12 watts vs. 60 watts for incandescent. Replacing all 30 bulbs in a home saves approximately:
- 30 × (60W − 10W) × 4 hours/day × 365 days = 2,190 kWh/year
- At 15¢/kWh = $329/year savings
LEDs are now inexpensive ($2–5/bulb) and widely available. Many utilities offer free LED bulb programs.
ENERGY STAR appliances
Look for the ENERGY STAR label when replacing appliances:
| Appliance | Typical Savings vs. Standard |
|---|---|
| Refrigerator | 15–20% |
| Dishwasher | 12–20% |
| Washer/dryer | 20–30% |
| Freezer | 15–25% |
Smart Home Controls
Smart thermostats
A smart thermostat (Nest, Ecobee, etc.) learns your schedule and reduces heating/cooling when you’re away or asleep.
- Average savings: $130–$200/year
- Cost: $150–$350 installed
- Payback: Under 2 years
Many utilities offer rebates of $50–$150 on smart thermostats. Enbridge Gas in Ontario covers up to $150; BC Hydro covers $75–$100.
Smart power bars
Electronics in standby mode (“vampire load”) account for 5–10% of a typical electricity bill. Smart power bars cut power to devices when the main device (TV, computer) is off.
Weatherization and Insulation
Air leaks and poor insulation force heating and cooling systems to work harder. Even if you rent, some improvements are worthwhile:
- Weatherstripping doors and windows: $30–$100 DIY; saves $100–$300/year
- Attic insulation: Major reduction in heating costs; see our home insulation costs guide
- Caulking gaps: Free to minimal cost; prevents drafts
Rebates and Financial Incentives
Province-by-province utility rebates
| Province | Program | Rebate Value |
|---|---|---|
| Ontario | Enbridge Home Efficiency Rebate Plus | Up to $10,000 (heat pumps, insulation) |
| BC | BC Hydro / FortisBC Efficient Home Program | $6,000–$16,000 for heat pumps |
| Alberta | Energy Efficiency Alberta (limited programs) | Varies |
| Quebec | Hydro-Québec Hilo / Thermos programs | $1,000–$2,000 |
| Nova Scotia | Efficiency Nova Scotia | Up to $12,000 for heat pumps |
| New Brunswick | NB Power Home Energy Efficiency | $2,000–$5,000 |
| Manitoba | Efficiency Manitoba | Varies |
See our full energy rebates by province guide for details.
Federal programs
- Canada Greener Homes Loan: Interest-free loans up to $40,000 for EnerGuide-recommended retrofits (insulation, heat pumps, windows). See the Greener Homes program guide.
Quick Wins Under $50
- Set your fridge to 3–4°C and freezer to −18°C (most people keep them too cold)
- Clean fridge coils annually (improves efficiency by 10–15%)
- Use cold water for laundry (saves hot water heating)
- Air-dry dishes instead of using the heated dry cycle
- Unplug chargers when not in use
- Use a power bar with a switch for your entertainment system
- Keep your dryer lint trap clean (reduces cycle time)
- Replace incandescent bulbs with LEDs