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Do I need a Level 2 audit to qualify for IESO saveONenergy incentives?

Yes. The IESO saveONenergy Retrofit Incentive Program requires an approved energy study meeting ASHRAE Level 2 methodology as the qualifying step for retrofit incentives covering LED lighting, HVAC upgrades, and building controls improvements.

UpdatedJune 2026
Read time4 min read
CategoryCommercial Energy Audits
Reviewed byGI Engineering
Clear answer

Clear answer, explained.

The saveONenergy Retrofit Incentive Program is Ontario's primary utility incentive for commercial and industrial energy efficiency upgrades. To qualify, the facility must complete an approved energy study — one that meets the ASHRAE Level 2 standard in terms of scope, data collection, and documentation. A walk-through assessment or a basic energy review does not satisfy this requirement.

The approved energy study identifies qualifying energy conservation measures and their estimated savings. These measures — LED lighting retrofits, HVAC upgrades, variable frequency drives, building controls improvements — are the eligible scope for incentive payments. The incentive is paid as a per-unit or per-kWh-saved amount for each qualifying measure implemented.

An audit that does not meet the ASHRAE Level 2 standard will not qualify for saveONenergy Retrofit Incentive funding, regardless of the savings it identifies. This is one of the most common reasons Ontario facilities leave incentive money unclaimed — the audit was done, the measures were implemented, but the audit documentation did not meet the program's methodology requirement.


Key points

What this means in practice.

  • saveONenergy Retrofit Incentive Program requires an approved energy study meeting ASHRAE Level 2 methodology
  • A walk-through assessment or basic energy review does not satisfy the saveONenergy documentation requirement
  • Qualifying ECMs include LED lighting, HVAC upgrades, VFDs, and building controls improvements
  • Incentives are paid per unit or per kWh saved for each qualifying measure implemented
  • Non-compliant audit documentation is the most common reason Ontario facilities miss saveONenergy incentives
  • NRCan IEM funding for the audit itself can be combined with saveONenergy ECM incentives in Ontario

When this applies

Best-fit environments.

  • You are planning LED, HVAC, or controls upgrades and want to confirm what audit documentation saveONenergy requires
  • You have completed an energy assessment but are not sure if it meets the saveONenergy methodology standard
  • You are sequencing an efficiency and solar project and need to confirm the audit qualifies before proceeding
  • You are a facility manager applying for saveONenergy funding and need the correct audit documentation

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