Ontario Residential Electricity Rates Increase by 20%: What You Need to Know Ontario residents are gearing up for another hike to their electricity bills, as the Ontario Energy Board (OEB) has approved a 20% increase in electricity rates effective November 1, 2023. This decision will impact all available residential pricing plans. Additionally, the Ontario Electricity [...]

Ontario Residential Electricity Rates Increase by 20%: What You Need to Know

Ontario residents are gearing up for another hike to their electricity bills, as the Ontario Energy Board (OEB) has approved a 20% increase in electricity rates effective November 1, 2023. This decision will impact all available residential pricing plans.

Additionally, the Ontario Electricity Rebate (OER) will be set to 19.3%, down from 31.8% when it was first introduced in 2017, which provides financial relief to consumers in the wake of soaring energy prices.

The government issued mandates throughout the pandemic which held electricity rates down, providing relief to those who lost work during lockdown, which are now coming to an end.

This rate increase is likely a sign of things to come, as electricity providers seek to make up for lost ground. The back-swing of holding prices down is the mounting economic pressure to suddenly increase prices, which is playing out now. We expect to see more sudden price upticks over the next few years.

Below are graphs showing how the Nov 1 2023 rate increase will affect each billing plan:

Time-of-Use (TOU) Billing Changes

Tiered Rate Billing Changes

Ultra-Low Overnight Billing Changes

This is a newer billing plan that will be launched more broadly as of November 1, 2023. To learn more about the Ultra-Low Overnight Rate, click here.

What the future has in store

Amid the Covid-19 pandemic era, the energy market, like many other sectors, experienced considerable fluctuations.

As depicted in the chart below, you’ll notice a normal gradual price escalation in response to inflation, but a distinct trend emerges in the graph around the beginning of the pandemic. It becomes evident that market pressures during the Covid-19 pandemic exerted substantial upward pressure on energy costs, only to be subsequently stabilized by government regulations.

The forthcoming 20% rate hike, scheduled for November 1st, 2023, signifies a return to the pre-pandemic norm in energy pricing. The industry is now focused on recovering the ground lost during this period of economic stagnation.

The grid has not gotten any younger during the last few years, and will require significant investment for its upkeep. We still have entire neighborhoods that still can’t go solar due to the outdated and over-capacity infrastructure.

Generate Energy Yourself with Solar

The 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 25 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 the rebates you get back. 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.

Request a consultation with one of our solar energy experts
Check out our article on the Canada Greener Homes Grant here.