Turn Ontario’s Peak Energy Hours into Savings with a Solar Energy System

Are Five Hours a Year Costing Your Facility Millions?

In Ontario, just a handful of high-demand hours, often no more than five, can determine the bulk of your annual Global Adjustment (GA) charges. For Class A manufacturers, this hidden cost can quietly erode profitability year after year. The question is: how do you take control before the next peak season hits? 

Ontario’s manufacturing sector is under constant pressure to manage energy costs, which have become a significant factor in operational budgets. One of the most critical components of these costs is the Global Adjustment (GA) charge—a fee that funds the province’s electricity infrastructure and conservation programs.

For Class A customers—those with an average peak demand of 1 MW or more—GA charges can account for a substantial portion of annual electricity expenses. As energy markets continue to fluctuate in 2025, manufacturers are seeking strategic, long-term solutions to manage this volatility. Solar energy is emerging as one of the most effective tools for mitigating these charges.

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What Are Global Adjustment Charges?

Global Adjustment is a fee added to electricity bills to cover the cost of building and maintaining Ontario’s electricity system, including contracts with generators and conservation programs.

Class A vs. Class B Customers

• Class A customers (large users, typically >500 kW demand) are billed based on their percentage contribution to the province’s top five peak demand hours each year. This is known as the Industrial Conservation Initiative (ICI).
  
• Class B customers (most other users) pay a fixed GA rate based on overall consumption.
  

For Class A manufacturers, this means that consumption during just five peak hours in a year can determine millions of dollars in costs.

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How Solar Energy Works to Lower Your Energy Costs

Solar photovoltaic (PV) systems do more than generate clean electricity—they are a strategic lever for reducing Global Adjustment (GA) charges for Ontario’s Class A manufacturers. Here’s how:

1. Reducing Peak Demand
   Solar generation naturally coincides with Ontario’s highest-demand hours, typically hot summer afternoons when cooling loads spike. By producing electricity on-site during these critical periods, your facility draws less from the grid, directly lowering your share of GA charges.
2. Shifting Load Profiles
   Beyond peak reduction, solar helps reshape your facility’s energy use. By supplying daytime electricity, it reduces reliance on grid power during costly hours, which can significantly lower your Industrial Conservation Initiative (ICI) peak contribution.
3. Protecting Against Rising Energy Prices
   Solar provides predictable, zero-fuel-cost energy over decades. This not only stabilizes electricity costs but also shields your facility from market volatility, making energy spending more manageable and strategic.

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Real-World Applications in Ontario

Ontario manufacturers are already using solar to turn energy costs from a liability into a strategic advantage. Facilities across industries—automotive, food processing, and metals—have implemented solar to directly reduce their GA exposure.

For example:

• A Class A facility with a 1 MW solar system can generate roughly 1.4 million kWh annually, cutting reliance on the grid during peak hours.
  
• When aligned with the province’s top five demand hours, these systems can reduce GA-related costs by around 370 kW.

Solar Incentives and Rebates in Ontario

Adopting solar doesn’t have to be a huge upfront expense. Ontario offers several programs that make solar adoption more financially attractive, with substantial funding for Class A manufacturers:

• Save on Energy Retrofit Program – Provides up to $860,000 in incentives for energy efficiency and renewable energy projects, including solar. This program helps offset upfront installation costs and improves the project payback period.
  
• Federal Investment Incentives – The Clean Technology Investment Tax Credit (ITC) provides a refundable credit of up to 30% of eligible project costs for solar systems. This incentive directly reduces the capital required, lowering payback periods and improving project economics.

By combining these programs, manufacturers can significantly reduce the initial investment for solar projects, turning them into a financially strategic and risk-mitigating solution.

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Long-Term Strategic Value

Solar delivers more than immediate savings—it’s a long-term business advantage:

• Predictable Energy Costs: Fixed-cost electricity generation for 25+ years.
  
• Sustainability and ESG Benefits: Helps meet carbon reduction goals and corporate responsibility targets.
  
• Enhanced Resilience: When paired with battery storage, solar can provide backup power during outages, keeping production running.
  

By integrating solar now, manufacturers can future-proof operations, insulate against energy market volatility, and align with evolving energy regulations.

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Key Takeaways: Solar Solutions for Ontario Class A Manufacturers

• Global Adjustment charges can represent a significant portion of electricity costs for Class A manufacturers.
  
• Solar energy aligns with peak demand periods to lower GA exposure and reduce overall electricity bills.
  
• Incentives and rebates make solar projects financially viable and strategically valuable.
  

Solar is not just a short-term cost-saver—it’s a long-term, risk-mitigating energy strategy.