Electricity Demand in Ontario Set to Grow by 75% by 2050
By Chris Ogilvie
Electricity Demand in Ontario Set to Grow by 75% by 2050: What It Means for Solar Energy What’s Driving the Surge in Demand? Rapid and transformative innovations in new technology, and the demand for such technology, will cause a sharp rise in demand for electricity within Ontario in the next 25 years. According to the [...]
Electricity Demand in Ontario Set to Grow by 75% by 2050: What It Means
for Solar Energy
What’s Driving the Surge in Demand?
Rapid and transformative innovations in new technology, and the demand for such technology, will cause a sharp rise in demand for electricity within Ontario in the next 25 years. According to the Independent Electricity System Operator (IESO), the province’s electricity demand is expected to rise by 75% by the year 2050. This equates to the annual consumption of electricity increasing from 151 terawatt-hours (TWh) in 2025 to 263 TWh in 2050. This biggest surges in electricity demand are right around the corner, and are expected to happen by 2035.
The accelerated increase in demand growth in this year’s forecast is mostly attributed to industrial sector growth. This is attributed to the growth of electric vehicle production and the supply chain for manufacturing electric vehicles. By 2035 it is projected that industrial sector growth will increase by 58% which accounts for 23 terawatt-hours (TWh) of electricity demand in that short time.
Since the industrial sector’s growth is primarily based on electric vehicle production, electric vehicles themselves are also going to garner a large chunk of electricity demand. electric vehicles are predicted to account for 31% of the new electricity demand by the same year, accounting for 20 TWh of increased electricity demand.
A compounding factor of energy demand in Ontario is our rising population. Ontario households are expected to grow 15% by 2035, which will project one million more homes. This population growth will account for 6 TWh or 9% of new electricity demand in the province.
The advancement and proliferation of Artificial Intelligence (AI) is also pushing up the demand for electricity as more energy intensive data centers are being built to support AI. Data centers account for 13% of new electricity demand by the year 2035, or 15 TWh.
How Solar Energy Fits Into the Picture
As electricity demand keeps climbing in Ontario, renewable energy is more important than
ever. That’s where solar steps in—offering a clean, sustainable way to balance the scales
and keep things running.
Here’s why solar is the perfect fit as Ontario’s electricity demand keeps climbing:
- Solar Grows with Demand: As Ontario’s energy needs go up, solar can scale right
along with it. Both homeowners and businesses can install panels to save money
on energy while also easing the load on the grid and boosting the overall electricity
supply. - Solar Saves You Money: With electricity costs soaring, solar gives you a long-term
way to cut those bills. With electricity demand now expected to increase by 75%,
prices on energy will increase even more. Once your system’s up and running, you
generate your own power—and can even sell extra energy back to the grid with net
metering. - Solar Powers Peak Demand: As the IESO works to bring in new power sources,
solar steps up by producing energy during peak daylight hours when demand is
highest. - Energy Independence: Installing solar panels means less reliance on an already
strained grid. With demand set to spike by 75%, that energy independence will be
more valuable than ever.
Why Now Is the Time to Go Solar
The IESO’s forecast is a wake-up call for anyone thinking about solar. With electricity demand set to soar and governments pushing for sustainability, there’s no better time to go solar than now. Energy prices in Ontario have already increased by 20% in October of 2023, and these increases are only slated to rise with the demand for electricity.
You’re not just investing in cleaner energy—you’re shielding yourself from the unpredictability of rising electricity costs. Plus, with government programs like the Canada Greener Homes Loan, going solar is more affordable than ever, offering zero-down financing and 0% interest loans to make the switch easy.
Solar can last you as long as 30 to 40 years. If you choose to go solar now, you are effectively locking in your energy costs for the lifetime of the system. No matter how many times electricity rates go up, you won’t feel the pinch—your solar system takes care of your power bill. If you want to see in more detail how solar saves you money, check out our blog post on the topic.
The Future of Ontario’s Energy Landscape
The government is already taking steps to tackle the rising electricity demand, investing in nuclear power and other large-scale energy projects to secure supply through the 2030s. But as demand keeps outpacing expectations, more needs to be done to keep energy both affordable and reliable.
Solar will be key in this future. Whether it’s powering homes, businesses, or electric vehicles, solar energy can help ease the load on the grid and contribute to a cleaner, more sustainable Ontario.
Prepare for the future with XOLAR
Any upcoming rate hikes will be far less noticeable to individuals who have invested in solar power. By paying a fixed cost to install solar, you are effectively freezing your cost of electricity for the next 30 or more years.
Being able to self-generate your energy will place you in a unique position to capitalize on rate increases by increasing the value of your investment as time goes by.
The good news is that government rebate programs remain available, rendering the initial costs of acquiring a solar installation well within financial reach. These incentives make transitioning to solar energy an economically viable choice for both environmentally conscious and budget-savvy consumers.
It’s not uncommon for homeowners to generate 90% or more of their annual electricity with solar. Due to recent changes allowing homeowners to sell energy back at time-of-day rates, it’s possible to net even more value for each kWh you generate during peak hours.
If you are thinking of going solar, our Solar Specialists and Project Managers can cleanly walk you through the steps of what is required in your province and make sure you maximize the value of any government programs in your area. We’ll also get you started on the vital first step of acquiring a tailor-made solar proposal for your personal energy needs at home.
Read more about the projected electricity demand increase at the IESO website.
Schedule a consultation for our solar specialist’s expert guidance here.
XOLAR INC.
Xolar is a full service turn-key platform for transitioning both residential and commercial clients, book a free quote today!
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