[As announced via the IESO's November 27, 2023 Advanced Procurement Notice on MERX, "Efficient Heat Pump Rebate Program - Program Delivery Services".]
As the energy transition accelerates, ground source heat pump (GSHP) and cold climate air source heat pump (ccASHP) technology have rapidly advanced and their costs have decreased. This makes them a viable high-efficiency residential home heating solution that can operate throughout most of the heating season and effectively replace or supplement four of the most common and less efficient heating sources, namely: electric resistance, oil, propane and natural gas.
The IESO’s 2021-2024 Conservation and Demand Management (CDM) Framework includes local initiatives deployed to deliver CDM savings in targeted areas of the province with identified system needs (the “Local Initiatives Program” under the Save on Energy banner). As a part of the Local Initiatives Program, the IESO is currently developing an efficient heat pump rebate offering (hereinafter referred to as the “Residential Rebate Program”)* for electrically heated homes, with the goal of launching the offer to residents in select target areas in early 2024. Through the Residential Rebate Program, Participants can be eligible for a direct rebate equal to approximately 30% of the project cost (i.e., installation plus measure cost) following a two-stage application process that includes verification of installation.
To support the launch and ongoing management of the Residential Rebate Program, through this RFP, it is the intent of the IESO to enter into an Agreement with a single service provider for program delivery services, as further described in the RFP.
* The Residential Rebate Program is currently planned as an offer to targeted areas under the Local Initiatives Program, but will not necessarily be limited to the Local Initiatives Program and the target participants identified in this RFP for the entire duration of the Agreement term contemplated in this RFP - i.e., the offer may expand; however, is not guaranteed to. The Residential Rebate Program may also expand its list of Eligible Measures to include additional measures for residential consumers.
