Ontario Smart Thermostats to Cut Peak Demand by 200 MW This Summer

An Ontario program to boost energy efficiency with smart thermostats has 200,000 households enrolled and expects to cut 200 megawatts of electricity demand during peak periods this summer.

The Peak Perks program is open to households that use smart thermostats, which can adjust heating and cooling temperatures to boost energy efficiency. Enrollees get a C$75 sign-up incentive, then $20 each year in return for allowing grid operators to temporarily adjust their temperature settings during periods of peak demand. The program aims to help Ontario’s Independent Electricity System Operator (IESO) reduce energy use at times when it would strain the grid.

Last summer, the program was activated nine times and achieved an estimated maximum one-hour peak demand reduction of 187 megawatts, the IESO said in a release.

Ottawa homeowner Jeff Prevett switched to a smart thermostat last year to address some reliability issues and to avail of some of the smarter technology’s added features. He signed up for Peak Perks following a prompt to enroll during the thermostat setup.

As part of the program, his thermostat’s temperature setting at times when no one is regularly home is raised a few degrees above normal during times of peak electrical demand in the summer, Prevett told The Energy Mix. This effectively turns off the air conditioning during that period, but the change usually goes unnoticed as the house is unoccupied. Enrollees can override the changes on a per-day basis if the temperature change ever causes a problem.

Prevett said he hasn’t noticed that the program tangibly affects his energy bills. The main benefit is knowing he is “contributing to maximizing the use of existing generation and distribution infrastructure by shifting a portion of [his] consumption to off-peak demand times.”

Peak Perks began in June 2023 and by the end of its first winter included 100,000 households that were networked together to form Canada’s largest virtual power plant. Its enrollment numbers have doubled since, and the program is also now open to small businesses.

The program is among those expanding as part of the Ontario government’s Affordable Energy Act, passed in December 2024. Energy Minister Stephen Lecce said the legislation will help implement Ontario’s long-term energy plan, and will also “prioritize zero-emission nuclear energy to meet growing energy demand, expand programs to help families and businesses save money and energy, support electric vehicle adoption and, as well, reduce last-mile connection costs.”