Skip to main content

How to Reduce Your Electricity Bill in Canada (2026)

Updated

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

  1. Set your fridge to 3–4°C and freezer to −18°C (most people keep them too cold)
  2. Clean fridge coils annually (improves efficiency by 10–15%)
  3. Use cold water for laundry (saves hot water heating)
  4. Air-dry dishes instead of using the heated dry cycle
  5. Unplug chargers when not in use
  6. Use a power bar with a switch for your entertainment system
  7. Keep your dryer lint trap clean (reduces cycle time)
  8. Replace incandescent bulbs with LEDs