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Ontario hydro rates increased January 1, 2026 across multiple local utilities
Burlington Hydro: +$3.93/month (2.95%) · Grimsby Power: +$4.42/month (3.27%) · Utilities Kingston: +$2.33/month · Toronto Hydro delivery charges updated. These come on top of the 29–30% RPP rate jump from November 2025. The long-term fix is residential solar with net metering or the HRSP rebate program.
If you've opened your hydro bill lately and felt a wave of frustration — you're not imagining things. Ontario electricity costs have been climbing steadily, and 2026 is no exception. Effective January 1, 2026, the Ontario Energy Board approved distribution rate changes across multiple local utilities, adding to an already significant hike that hit in November 2025.
For a typical Ontario household using around 750 kWh per month, these changes have a real, measurable impact — and they're not going away. In fact, rates are expected to keep rising through 2028 and beyond, driven by infrastructure investment and ongoing nuclear refurbishment costs. Here's the full picture.
What Changed on January 1, 2026?
The Ontario Energy Board issued final Decision and Rate Orders for local distribution companies (LDCs) across the province. These are the delivery and distribution charges on your bill — separate from the electricity commodity price set under the Regulated Price Plan (RPP).
Here's a breakdown by utility, based on a typical residential customer using 750 kWh per month:
| Utility | Monthly Change | % Change | Notes |
|---|---|---|---|
| Burlington Hydro | +$3.93 | +2.95% | Before taxes and Ontario Electricity Rebate |
| Grimsby Power | +$4.42 | +3.27% | After taxes and Ontario Electricity Rebate |
| Utilities Kingston | +$2.33 | — | Before taxes and Ontario Electricity Rebate |
| Toronto Hydro | Delivery charges ↑ | — | Transmission Charge decreased by $0.118/kWh |
| Milton Hydro | +$0.04 | +0.02% | Electricity only — water rates +6.0% (Halton Region) |
Sources: OEB Decision EB-2025-0051 (Burlington Hydro) · Grimsby Power Rate Update · Utilities Kingston January 2026 · Toronto Hydro Residential Rates
Important clarification on Milton Hydro: The 6.0% figure that's been circulating relates to Halton Region water and wastewater rates — not electricity. Milton Hydro's electricity distribution increase for 2026 is just $0.04/month for a typical residential customer.
This Is on Top of the November 2025 Rate Jump
The January 2026 distribution rate changes don't exist in isolation. On November 1, 2025, the OEB implemented the largest RPP electricity price increase since 2019 — roughly 29–30% across all rate plans. The government responded by raising the Ontario Electricity Rebate (OER) from 13.1% to 23.5%, which offset some of the impact. But for a typical household using 700 kWh/month, the net result was still an extra $15–$25 per month.
Current Ontario RPP Rates (Winter 2025–2026)
| Rate Plan | Rate | When It Applies |
|---|---|---|
| TOU On-Peak | 20.3¢/kWh | Weekdays 7–11am and 5–7pm |
| TOU Mid-Peak | 15.7¢/kWh | Weekdays 11am–5pm |
| TOU Off-Peak | 9.8¢/kWh | Nights, weekends, holidays |
| Tiered (Tier 1) | 10.3¢/kWh | First 1,000 kWh/month (winter) |
| Tiered (Tier 2) | 12.5¢/kWh | Above threshold |
| ULO Overnight | 3.9¢/kWh | 11pm–7am daily |
| ULO On-Peak | 39.1¢/kWh | Weekdays 4–9pm |
Source: Ontario Energy Board – Regulated Price Plan. The next scheduled rate adjustment is May 1, 2026, when summer TOU periods take effect.
Why Are Rates Going Up? The Real Reasons
1. Nuclear generation costs
Approximately 50–60% of Ontario's electricity comes from nuclear power. Refurbishments at Darlington and Pickering — part of a multi-billion dollar infrastructure program — are flowing through to ratepayers over the coming years. This isn't going to reverse anytime soon.
2. Aging distribution infrastructure
Local distribution companies are replacing aging poles, transformers, cables, and control systems. Burlington Hydro sought approval for an Advanced Capital Module specifically to replace its SCADA system and implement an Advanced Distribution Management System.
3. Grid modernization and electrification
Ontario is building out the grid to support electric vehicles, heat pumps, and broader electrification. That investment is real and ongoing, and ratepayers fund it through delivery charges.
What Does Your Average Ontario Hydro Bill Look Like Right Now?
After all charges — electricity, delivery, regulatory fees — and after the Ontario Electricity Rebate is applied:
700 kWh/month
Typical household
$130–$160/month
1,000 kWh/month
Above-average usage
$180–$230/month
Electric heating (winter)
High-consumption homes
$200–$350/month
The Compounding Problem: Rates Are Not Going to Stop Rising
Even setting aside sudden jumps, a consistent 3–5% annual rate increase — which is roughly what Ontario has averaged over the past decade — has a serious long-term effect. Here's what it looks like for a household paying ~$145/month today:
| Year | Projected Monthly Bill (750 kWh, ~$145 today) |
|---|---|
| 2026 | ~$145 |
| 2028 | ~$156 |
| 2030 | ~$168 |
| 2033 | ~$186 |
| 2036 | ~$205 |
By 2036, a family doing nothing is likely paying over $200/month for the same electricity they pay $145 for today — that's over $700/year more, every year, indefinitely. This is why the financial case for residential solar keeps getting stronger.
The Solar Equation: How Rate Hikes Change the Math
Every time hydro rates go up, your solar system's payback period gets shorter — and your total lifetime savings get larger.
An average 8 kW residential solar system in the Greater Toronto Area produces approximately 9,500–10,500 kWh annually. At current blended Ontario rates — including delivery and regulatory charges — that's roughly $1,400–$1,600 worth of electricity per year you're no longer buying from the grid.
Typical payback period
Depending on system size, cost, energy usage, and financing
8–12 years
Post-payback savings period
Panels warranted for 25 years, continue producing beyond
15+ years
Lifetime savings (8–10 kW system)
Against a capital cost recovered in under a decade
$40,000–$70,000
With Ontario's Net Metering program, excess solar generation is exported to the grid for a 1:1 bill credit, carried forward for up to 12 consecutive months — summer surplus offsets winter consumption.
Net Metering vs. HRSP Load Displacement: Which Is Right for You?
This is the most important decision Ontario homeowners face when going solar in 2026. Ontario's Home Renovation Savings Program (HRSP) offers up to $10,000 in rebates for solar + battery — but it requires load displacement configuration, meaning your system must avoid grid export. You cannot combine HRSP with net metering.
Choose Net Metering if:
Choose HRSP + Load Displacement if:
For most Ontario homeowners in 2026, the HRSP + load displacement + ULO combination produces a higher 25-year return than net metering alone. The ULO overnight rate of 3.9¢/kWh vs on-peak at 39.1¢/kWh creates a 35.2¢/kWh arbitrage spread — generating an additional $1,000–$1,500/year in savings.
What To Do Now: A Practical Action Plan
Pull your last 12 months of hydro bills
Understand your actual annual kWh consumption — not just a single month. This is the foundation of any accurate solar quote.
Get a proper site assessment
Roof orientation, shading, structural capacity, and your local utility's grid capacity all affect what system makes sense for your home.
Understand the HRSP rebate deadline
The $10,000 rebate program has funding limits. Waiting has a real cost — both in the rebate potentially tightening, and in every additional month you pay full grid rates.
Ask the right question
Not 'how much does solar cost?' but 'what is my 25-year return?' A properly installed 8–10 kW system typically generates $40,000–$70,000 in lifetime electricity savings.
Frequently Asked Questions
Will Ontario hydro rates keep going up after 2026?
Yes. Rate increases are expected to continue through at least 2028, driven by nuclear refurbishment costs and infrastructure investment. The next RPP adjustment is May 1, 2026 (summer rates). Even modest annual increases of 3–5% compound significantly over a decade.
Does the Ontario Electricity Rebate offset the increases?
Partially. The OER was raised to 23.5% in November 2025, which helps — but it doesn't fully offset the compounding effect of annual distribution rate increases on top of commodity price changes. Most Ontario households are still paying significantly more than before November 2025.
Can I really get $10,000 back for going solar?
Ontario's Home Renovation Savings Program (HRSP) offers up to $10,000 in rebates for qualifying solar + battery installations. Eligibility and program details apply. Contact Solar X to confirm your eligibility.
Does solar make sense if my utility's increase is small this year?
Yes — individual utility increases are part of a longer trend. The 2026 distribution rate changes come on top of a 29–30% RPP electricity price increase in November 2025. The decision to go solar is a 25-year financial decision, not a one-year calculation.
What is net metering and how do credits work?
Under Ontario's net metering program (O. Reg. 541/05), residential solar customers receive a 1:1 bill credit for every kWh of excess electricity exported to the grid. Credits carry forward for up to 12 consecutive months, then expire. Ontario does not pay cash for surplus generation — the program is credit-based only.
Will my Ontario electricity bill be zero with solar?
Not quite — delivery charges remain even if your solar system offsets 100% of your electricity consumption. The minimum delivery charge varies by utility (typically $20–$35/month). However, the electricity portion of your bill — typically 45–55% — can be reduced to near zero.
Tired of Watching Your Hydro Bill Climb?
Solar X installs residential solar across Ontario — full turnkey, permits, ESA, net metering or HRSP setup, and rebate coordination. Get a free assessment based on your actual bills and roof.
External References & Sources
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- 4Grimsby Power — January 2026 Rate Updategrimsbypower.com
- 5Utilities Kingston — January 2026 Rate Changesutilitieskingston.com
- 6Toronto Hydro — Residential Rates 2026torontohydro.com
- 7Milton Hydro — January 2026 Rate Updatemiltonhydro.com
- 8Hydro One — Net Metering Programhydroone.com
Related Guides
Last updated: March 2026. Rate data sourced from Ontario Energy Board official decisions and utility operator notices. This content is intended for informational purposes. Contact Solar X for a personalized solar assessment based on your specific home, utility, and consumption profile.