Ontario · Clean Technology · 2026

Ontario Clean Technology Grants & Tax Credits

Ontario funds clean technology through three separate institutions, not one: OVIN for EV and mobility R&D, IESO's Save on Energy programs for large-scale efficiency, and Invest Ontario for critical-minerals capital, layered under the same federal Clean Economy tax credits every province shares. This is the plain-English map of the 2026 programs, who actually qualifies, and how an Ontario business reaches them.

See the top programs →

Updated October 2026 · OVIN · IESO XLerate · Clean Economy ITCs · ~25 minute read

Up to 30%Refundable federal Clean Technology ITC, the broadest entry point
$500MInvest Ontario's Critical Minerals Processing Fund pool
3 lanesdevelop, deploy, or claim, matched to your project's stage
Two taps: see which Ontario, federal and regional money fits your project
The short answer

Ontario funds clean technology through three different lanes, not one. The Ontario Vehicle Innovation Network (OVIN) funds R&D for electric and connected-vehicle technology, up to $1 million for commercialization. The Independent Electricity System Operator's XLerate program pays up to $15 million for large-scale industrial energy-efficiency projects on a pay-for-performance basis. Invest Ontario negotiates direct capital support for critical-minerals processing through its $500-million fund. And on top of all three, five federal Clean Economy investment tax credits, refundable from 15% to 60%, apply to clean technology, manufacturing, carbon capture, hydrogen, and clean electricity investments regardless of province. Which lane fits depends almost entirely on whether your project is developing new technology, ready to deploy it at scale, or already spending capital on qualifying equipment.

Why Ontario's cleantech funding spans three lanes

Ontario doesn't have one dominant cleantech funder the way Alberta has Emissions Reduction Alberta or Quebec has Investissement Québec. Instead, funding is split across three separate institutions built for three different jobs: the Ontario Vehicle Innovation Network (OVIN), delivered through the Ontario Centre of Innovation, which funds R&D for electric and connected-vehicle technology; the Independent Electricity System Operator (IESO), which runs Save on Energy's pay-for-performance incentives for large-scale energy efficiency; and Invest Ontario, which negotiates direct capital support for strategic manufacturing and critical-minerals projects. On top of all three sit the same five federal Clean Economy tax credits available to any taxable Canadian corporation, regardless of province.

The province's industrial geography shapes which lane fits a given company. Windsor-Essex is Ontario's EV and battery-manufacturing corridor and OVIN's primary constituency. Hamilton's steel industry and the Sarnia petrochemical cluster are the province's main candidates for the federal Carbon Capture, Utilization and Storage tax credit. Waterloo Region, anchored by Communitech and the University of Waterloo, is Ontario's deepest cleantech R&D cluster outside Toronto. And Northern Ontario, home to the Ring of Fire and Sudbury's nickel and cobalt operations, is where the province's two critical-minerals programs, the Critical Minerals Innovation Fund and the Critical Minerals Processing Fund, concentrate their support.

The verdict

If your project is deploying proven clean technology at scale, capital credits and Invest Ontario's negotiated support are your lane. If you're still validating a technology, NRC IRAP, OVIN's Stream 1, and the Critical Minerals Innovation Fund fund that earlier stage instead.

Sources: Ontario Centre of Innovation (OVIN); Independent Electricity System Operator (IESO); Invest Ontario; Ontario Ministry of Energy and Mines.

The top Ontario cleantech programs in 2026

These are the programs an Ontario business is most likely to use to fund a clean technology project: the province's own institutions first, then the federal tax credits available to any taxable Canadian corporation, then the regional and early-stage funding that rounds out the stack. Amounts and rates below are drawn from official program pages, always confirm the current terms with the delivering agency before you build a plan around them.

ProgramWhat it givesAmountBest for
OVIN R&D Partnership Fund (Ontario Centre of Innovation)R&D co-investmentUp to $1MEV, connected-vehicle, and mobility technology R&D
IESO: XLerate Program (Save on Energy)Pay-for-performance incentiveUp to $15MLarge-scale industrial or institutional energy efficiency
Critical Minerals Processing Fund (CMPF) (Invest Ontario)Negotiated capital support$500M poolCritical-minerals processing and refining facilities
Critical Minerals Innovation Fund (CMIF) (Ontario Ministry of Energy and Mines)Non-repayable grantUp to $500KCritical-minerals R&D and commercialization
NOHFC: INVEST North Innovation Stream (Northern Ontario Heritage Fund Corporation)Non-repayable contributionUp to $2MNorthern Ontario cleantech R&D and commercialization
FedDev Ontario: Business Scale-up and Productivity (FedDev Ontario)Interest-free repayable contribution$125K to $10MSouthern Ontario cleantech manufacturers scaling production
NRC IRAP Clean Technology Program (National Research Council Canada)R&D and advisory funding$100K to $1MSMEs developing or commercializing clean technology
Clean Technology Investment Tax Credit (Canada Revenue Agency)Refundable tax creditUp to 30%Solar, storage, heat pumps, and other clean-energy capex
Clean Technology Manufacturing ITC (Canada Revenue Agency)Refundable tax creditUp to 30%Equipment manufacturing clean tech or processing critical minerals
Carbon Capture, Utilization & Storage ITC (Canada Revenue Agency)Refundable tax credit37.5 to 60%Capture, transport, storage, and use equipment
Clean Hydrogen Investment Tax Credit (Canada Revenue Agency)Refundable tax credit15 to 40%Hydrogen production by electrolysis, reforming with CCUS, or pyrolysis
Clean Electricity Investment Tax Credit (CRA / NRCan)Refundable tax credit15%Clean electricity generation, storage, and transmission capital
Status note: the Critical Minerals Innovation Fund's 2026 intake is closed: it ran June 30 to August 25, 2026, and as of October 23, 2026 Ontario's page says the application period is now closed. OVIN's Stream 2 (commercialization) intake status changes through the year, and FedDev Ontario and NOHFC run on rolling or periodic intakes rather than a fixed calendar. Confirm the current intake on the delivering agency's own page before you plan around any single program.
Sources: Ontario Centre of Innovation (OVIN); Independent Electricity System Operator; Invest Ontario; Ontario Ministry of Energy and Mines; Northern Ontario Heritage Fund Corporation; FedDev Ontario; National Research Council Canada; Canada Revenue Agency (Clean Economy Investment Tax Credits).

What counts as clean technology in Ontario, and which money fits your project

Clean technology is equipment or know-how that cuts energy use, emissions or waste compared with what it replaces, and each Ontario funder counts a different slice of it. As of October 23, 2026, the CRA counts a list of property, OVIN counts vehicle and mobility tech, IESO counts electricity saved, Enbridge Gas counts gas saved, and the minerals funds count a minerals list.

1. What does your project do?

2. Where in Ontario?

As of October 23, 2026, for a project that cuts electricity use in the GTA, Hamilton or the rest of the south: start with the Save on Energy Small Business or Retrofit Program (XLerate from 600 MWh a year of savings), claim the Clean Technology ITC on any listed equipment once it is in service, and FedDev Ontario adds repayable money.

OntarioactiveSave on Energy Small Business or RetrofitUp to $5,500 installed free, or 50% of costsNon-repayable incentiveNo fixed deadlineAt 600 MWh a year of savings or more: IESO XLerate, up to $15M. Rule to know first: apply before any binding purchase commitment.
FederalactiveClean Technology ITCUp to 30%Tax creditOnly for property on the CRA list, such as heat pumps, solar or storage.
Your regionactiveFedDev Ontario Business Scale-up$125K to $10MRepayable, interest-freeRepaid in full, starting one year after the project ends.

Every date open now, in one list →

These are three layers, not the whole list.
See every Ontario program your project clears, not just these →

All ten projects side by side
Your projectOntarioFederal
Cut electricity useSmall Business Program, $5,500 installed; Retrofit Program, 50%; XLerate to $15M (600 MWh+)Clean Technology ITC, up to 30%, listed property
Cut natural gas useEnbridge Gas Custom Retrofit, up to $100,000Clean Technology ITC if you install a heat pump
Build EV, battery or charging techOVIN R&D Partnership Fund, up to $1MClean Technology Manufacturing ITC, up to 30%
Process or refine critical mineralsProcessing Fund, negotiated; Innovation Fund, R&D to $500KClean Technology Manufacturing ITC, up to 30%
Make or use hydrogenHydrogen Innovation Fund, $1M to $4.5M, between intakesClean Hydrogen ITC, 15% to 40%, for producers
Generate or store clean electricityRetrofit Program for solar PV at a business siteClean Technology ITC, up to 30%; utility scale: Clean Electricity ITC, 15%
Capture carbon at a heavy plantNone on our listCCUS ITC, 37.5% to 60%
Turn wood or forest residue into energyOntario Forest Biomass Program, up to $10MClean Technology ITC, listed equipment only
Prove a technology not selling yetOVIN Stream 1 for vehicles; the Innovation Fund for mineralsNRC IRAP Clean Technology, $100K to $500K typical
Software with no clean outputNot clean technology to these fundersOntario technology grants instead
Sources: our records for each program, status as of October 23, 2026; saveonenergy.ca (XLerate) and ovinhub.ca (OVIN). Read October 23, 2026. Credit rates and calculator: Clean Economy tax credits.

OVIN, IESO, and Invest Ontario: the province's own cleantech engines

If you're building EV or connected-vehicle technology

OVIN is the most Ontario-specific route

The Ontario Vehicle Innovation Network, delivered through the Ontario Centre of Innovation, co-invests in Ontario SMEs developing next-generation automotive and mobility technology: EVs, connected and autonomous vehicles, charging, and semiconductors. Stream 1 covers up to $100,000 for proof-of-concept work at a 50% co-investment; Stream 2 covers up to $1 million for commercialization, with OVIN contributing up to a third of eligible costs and a 2:1 private-to-public matching requirement. Your project needs to demonstrate Ontario economic benefit, which puts Windsor-Essex, the province's EV and battery-manufacturing corridor, at the centre of OVIN's activity.

If you're retrofitting a facility for energy efficiency

IESO's XLerate program pays for verified results, not applications

Launched in November 2025, XLerate is a pay-for-performance incentive from Ontario's Independent Electricity System Operator, delivered through Save on Energy. It pays up to $300 per MWh of verified electricity savings, or $450/MWh in grid-constrained areas, covering up to 75% of eligible project costs to a maximum of $15 million per project. Your project needs to deliver a minimum of 600 MWh per year in anticipated savings, and you have to apply before entering any binding purchase commitment for equipment, so this is a program to bring in early, not after you've already signed a vendor contract.

If you're processing critical minerals at scale

Invest Ontario negotiates capital, it doesn't run a competition

The Ontario Critical Minerals Processing Fund is a $500-million provincial pool, launched by Invest Ontario in December 2025, for businesses building, expanding, or modernizing facilities that process or refine critical minerals used in EV batteries, defence, aerospace, and advanced manufacturing supply chains. It isn't a traditional grant application: businesses engage Invest Ontario directly to structure a tailored support package, and large strategic projects can take six to eighteen months from initial engagement to a funding agreement. Foreign-owned companies are eligible if the project is based in Ontario and creates Ontario jobs.

Sources: Ontario Centre of Innovation (OVIN R&D Partnership Fund); Independent Electricity System Operator (XLerate); Invest Ontario (Critical Minerals Processing Fund).

Too small for XLerate? Efficiency money for one building or plant

Clean energy funding for one building or plant in Ontario comes from Save on Energy and Enbridge Gas, because XLerate needs at least 600 MWh a year of savings. As of October 23, 2026, the Save on Energy Small Business Program installs up to $5,500 of upgrades at no cost, the Retrofit Program covers up to 50% of costs, and Enbridge pays up to $100,000 a project on gas savings.

ProgramPays forFits if
Save on Energy Small Business ProgramUp to $5,500 installed at no cost: $3,000 lighting, $2,500 refrigeration and thermostatsA small business site that wants the work done for it
Save on Energy Retrofit ProgramUp to 50% of eligible costsHVAC, controls or production equipment at an existing site
Enbridge Gas Commercial Custom Retrofit$0.40 per m³ saved, up to 75% of upgrade costs and $100,000 ($500,000 for institutions)Heat recovery, ventilation, steam or building automation
Enbridge Gas Prescriptive Incentive$200 to $18,000 per unit, capped at 50% of cost and $100,000 a projectStandard gas equipment from its list, applied for by December 31, 2026

Apply before you commit. The Retrofit Program and XLerate want your application before a binding purchase commitment, such as a purchase order; Enbridge pre-approves custom projects before equipment is bought.

Sources: saveonenergy.ca and enbridgegas.com, read October 23, 2026; Enbridge prescriptive terms from our record, verified August 31, 2026.

Most single sites start with the program that installs the upgrades for them.
See what the Small Business Program installs →

The federal Clean Economy tax credits

Ontario's manufacturing and automotive base means its cleantech businesses draw on the federal Clean Economy investment tax credits as heavily as any province. Unlike OVIN or IESO's competitive or performance-based funding, these are refundable credits: you incur eligible capital costs, then claim the credit with your corporate tax return. There's no application to win, and for most of them, no deadline beyond the program's multi-year window.

Credit 1 · General capex

Clean Technology ITC

Up to 30% refundable, no sector restriction. Covers solar PV, energy storage, heat pumps, and non-road zero-emission vehicles.

Delivered byCanada Revenue Agency
Credit 2 · Manufacturing

Clean Tech Manufacturing ITC

Up to 30% refundable for equipment that manufactures clean-tech products or processes critical minerals, directly relevant to Ontario's battery supply chain.

Delivered byCanada Revenue Agency
Credit 3 · CCUS

CCUS ITC

37.5% to 60% refundable (60% for direct air capture), most relevant to Hamilton's steel producers and the Sarnia petrochemical cluster.

Delivered byCanada Revenue Agency
Credit 4 · Hydrogen

Clean Hydrogen ITC

15% to 40% refundable, depending on the carbon intensity of your hydrogen production pathway.

Delivered byCanada Revenue Agency
The verdict

The Clean Technology ITC (up to 30%) is the most broadly useful credit for an Ontario business investing in clean energy equipment, no sector restriction, no competition. For critical-minerals processors and EV supply-chain manufacturers specifically, the Clean Technology Manufacturing ITC and Invest Ontario's negotiated capital can often apply to the same project, confirm the eligible-cost boundaries with the CRA and Invest Ontario before assuming a combined rate. Ontario also has a fifth credit, the Clean Electricity ITC (15% refundable, enacted March 2026), aimed mainly at utility-scale generation, storage, and transmission projects.

Sources: Canada Revenue Agency (Clean Economy Investment Tax Credits); Department of Finance Canada, Budget 2025 and the Spring 2026 Economic Update.

Regional and early-stage funding: FedDev Ontario, NOHFC, and NRC IRAP

OVIN, IESO, and Invest Ontario's flagship programs assume your technology already works or your project is ready for capital. If you're a Southern Ontario manufacturer scaling up, a Northern Ontario company building a critical-minerals R&D project, or a company still validating a technology before commercial deployment, three other programs fund that work instead.

Expert deep-dive: sequencing critical-minerals funding from R&D to capital

A workable sequence for an Ontario company working in critical minerals: use the Ontario Critical Minerals Innovation Fund (up to $500,000, 50% of eligible costs) to fund R&D, prototyping, testing, and IP protection through the Transfer Payment Ontario portal. Northern Ontario companies can pair this with NOHFC's INVEST North Innovation Stream (up to $2 million, uniquely allowed to stack with other government funding up to 75% of eligible costs), which funds applied R&D and commercialization specifically in the north. Once a technology or facility is ready to build at commercial scale, Invest Ontario's Critical Minerals Processing Fund is the capital-stage program, a negotiated engagement rather than a competitive application, backed by its $500-million pool.

Federally, NRC IRAP's Clean Technology Program, established in February 2025, took over funding that Sustainable Development Technology Canada (SDTC) used to provide before it was wound down. It funds Canadian SMEs with 500 or fewer employees that already have a validated proof of concept, typically $100,000 to $500,000 through an assigned Industrial Technology Advisor, though the program is in transition toward the new Canada Innovation Corporation by fiscal year 2026-27, so confirm current availability before you count on it. Southern Ontario manufacturers scaling cleantech production can also draw on FedDev Ontario's Business Scale-up and Productivity program, $125,000 to $10 million in interest-free repayable contributions, provided you can match at least 50% of eligible project costs.

Sources: Ontario Ministry of Energy and Mines (CMIF); Northern Ontario Heritage Fund Corporation (NOHFC); National Research Council Canada (NRC IRAP Clean Technology Program); FedDev Ontario (Business Scale-up and Productivity).

Where you are in Ontario changes the money

Where your business sits in Ontario decides which regional funder can add money. As of October 23, 2026, NOHFC funds Northern Ontario, FedDev Ontario funds the south, and two provincial development funds split the south into east and southwest. We know of no official ranking of Ontario municipalities for technology clusters, and we do not make one.

  • Northern OntarioNOHFC INVEST North Innovation Stream: up to $2M, non-repayable, for R&D and commercialization. Its Grow Stream closes its next round October 31, 2026.
  • Eastern OntarioEastern Ontario Development Fund: a loan up to $5M, interest-free during the project, with up to 30% of it (at most $500K) forgiven if you meet your investment and job targets; a grant to $500K only for rural firms under 100 staff. Upcoming: next window November 3, 2026 to January 21, 2027. FedDev Ontario covers you too.
  • Southwestern OntarioSouthwestern Ontario Development Fund: the same terms and window, with a regional advisor consulted first. Windsor-Essex and Sarnia-Lambton sit here. FedDev Ontario covers you too.
  • Toronto, the GTA and HamiltonFedDev Ontario Business Scale-up: $125K to $10M, interest-free, repaid in full. On a county line, check both development funds' lists.
City incentives that can sit under an expansion (5)
CityIncentiveWhat it gives
TorontoEDGE Incentive Program100% of the municipal tax increase back over five years, at that rate until December 31, 2027
TorontoCapacity Buyback ProgramUp to $0.30 per litre of water saved per average day
BramptonIndustrial Expansion DC ExemptionCity development charges waived on an expansion of up to 50% of floor area
WindsorBusiness Retention and Expansion GrantUp to 100% of the municipal tax increase back for up to 10 years
WaterlooUptown Waterloo CIPA sustainability grant of 50%, up to $10,000, for work done by October 31, 2026

Near Kitchener and Waterloo, FedDev Ontario covers the region. See who was funded in Kitchener and Waterloo.

Sources: our records for each program, as of October 23, 2026; public funding records by city, data as of July 2026. Read October 23, 2026.

The Ontario cleantech funding journey: develop, deploy, claim

Most Ontario cleantech projects move through the same three stages. Matching the right program to your stage is what separates a funded project from a stalled application.

DevelopUp to $1M
Validate the technology

NRC IRAP, OVIN's Stream 1, and the Critical Minerals Innovation Fund fund R&D, prototyping, and testing before your technology or facility is ready for commercial deployment.

Deploy$2M to $15M
Build or scale it

IESO's XLerate program, NOHFC, FedDev Ontario's Business Scale-up and Productivity program, and OVIN's Stream 2 fund demonstration and deployment once your technology is proven and ready to build.

Claim15 to 60%
Capture the capital credits

The federal Clean Economy tax credits, Clean Technology, Manufacturing, CCUS, Hydrogen, and Electricity ITCs, apply once you're building at commercial scale, claimed directly on your tax return. Invest Ontario's negotiated capital operates at the same stage for critical-minerals processing.

What Ontario cleantech funding actually covers

EVBattery, vehicle & charging tech
MWhIndustrial energy efficiency
MineralsProcessing & refining capacity
R&DPrototyping, testing, commercialization

Who qualifies

Eligibility varies by program, but Ontario cleantech funding shares a common core. You generally qualify if:

  • Your business or project is based and operating in Ontario. OVIN, IESO's XLerate program, NOHFC, and the Ontario provincial funds all require this.
  • You're a taxable Canadian corporation for the federal tax credits, or a private-sector business incorporated in Ontario for the provincial R&D and capital programs.
  • Your technology readiness matches the lane: NRC IRAP requires a validated proof of concept, not a pre-concept idea; OVIN funds work at technology readiness level 3 through 9; and IESO's XLerate program and Invest Ontario's capital funds require commercially available, proven technology.
  • You can contribute matching funds. OVIN requires a 2:1 private-to-public match, the Critical Minerals Innovation Fund covers 50% of eligible costs, and FedDev Ontario's Business Scale-up program requires you to match at least 50%.

The province's own programs add their own gates: OVIN requires your project to demonstrate Ontario economic benefit; IESO's XLerate program requires a minimum of 600 MWh per year in verified electricity savings; and the Critical Minerals Innovation Fund allows only one project per applicant per intake round and bars concurrent funding from other Ontario government programs on the same project.

Overlap note: R&D tax credits like the federal SR&ED program (refundable up to 35% on the first $6M of qualifying CCPC expenditures) reward inventing something new, while the programs above mostly reward deploying or scaling proven technology. Consult a tax advisor before layering SR&ED, provincial grants, and the federal Clean Economy tax credits on the same project costs.
Sources: Ontario Centre of Innovation; Independent Electricity System Operator; Ontario Ministry of Energy and Mines; National Research Council Canada; Canada Revenue Agency.

How to apply

There is no single cleantech portal in Ontario, each program is submitted to the institution that delivers it. The path that works for most businesses:

  1. Identify your funding lane. Development-stage R&D (NRC IRAP, OVIN, the Critical Minerals Innovation Fund), deployment-stage capital (IESO XLerate, Invest Ontario, FedDev Ontario), or a tax credit claimed at year-end: each suits a different project stage.
  2. Confirm your Ontario footprint. Provincial programs need the project or business to be based and operating in Ontario, and OVIN specifically requires demonstrated Ontario economic benefit.
  3. Assemble your cost case. Vendor quotes, engineering estimates, and confirmation of your matching-fund contribution. Most grants expect all three.
  4. Apply directly to the delivering agency. The Ontario Centre of Innovation for OVIN, IESO's Save on Energy portal for XLerate, Invest Ontario directly for critical-minerals capital, or the Transfer Payment Ontario portal for CMIF.
  5. Register early for tax credits that require it. The federal CCUS Investment Tax Credit needs a project plan submitted to Natural Resources Canada before major capital spending; the others are claimed directly on your T2 return.
  6. Track your intake window. The Critical Minerals Innovation Fund and Invest Ontario's programs run on periodic or rolling cycles rather than a fixed yearly deadline. Apply as early as you can, and for IESO's XLerate program, apply before you sign any equipment purchase commitment.

Which Ontario cleantech programs are taking applications right now?

As of October 23, 2026, the GrantCompass catalogue shows three Ontario cleantech programs with a deadline ahead: NOHFC's Grow Stream (October 31), OVIN's R&D Partnership Fund (November 4) and AMIC for manufacturing expansions (November 5). XLerate and the Forest Biomass Program have no fixed deadline; the Critical Minerals Innovation Fund and the Hydrogen Innovation Fund are between intakes.

  1. NOHFC INVEST North Grow Stream: up to $400K grant or $1M loan for Northern Ontario expansions.
  2. OVIN R&D Partnership Fund, round 3: expression of interest due, up to $1M.
  3. AMIC: grants up to $1.5M and interest-free loans up to $5M. The next period runs January 28 to April 27, 2027.
  4. Forest Biomass Program, XLerate while funding lasts, the Retrofit Program.
  5. Critical Minerals Innovation Fund (closed August 25, 2026) and the Hydrogen Innovation Fund (closed February 11, 2026).

What about the 2026 budgets? A budget announces money; a program pays once its funder opens an intake. Budget 2025's changes to the clean economy credits are under what changed in 2026, and every open Ontario program, cleantech or not, is on Ontario grants open now.

Sources: our records (OVIN checked October 19, 2026; AMIC July 31; NOHFC Grow August 3); ontario.ca CMIF page. Read October 23, 2026.

All sectors, not only clean technology

Federal business funding on record for Ontario companies

2,481 companies in 8 Ontario cities are named in federal business-funding records, fiscal 2005 to 2026; 773 of them were funded in fiscal 2025 or later. In Toronto the typical company on the record received $84K in total across those years. The record is federal: territorial and provincial programs are not in it.

CityCompanies on recordTypical total per companyFunded since fiscal 2025
Toronto1,168$84K349
Ottawa396$149K134
Mississauga285$116K99
London140$144K34
Markham140$64K45
North York121$120K39
Kitchener117$188K37
Waterloo114$216K36

Data as of July 2026. Covers published federal agreements over $25,000 for the programs we track, in cities with 20 or more named companies; loans and most tax credits are not in it. Each city links to its full list. Contains information licensed under the Open Government Licence – Canada.

What's changed in 2026

Two major Ontario programs launched within weeks of each other. IESO's XLerate program launched in November 2025 as a new pay-for-performance incentive for large-scale industrial and institutional energy efficiency, and Invest Ontario's $500-million Critical Minerals Processing Fund launched in December 2025 to attract investment in critical-minerals processing, refining, and recovery. Together they give Ontario cleantech companies two new, well-funded deployment-stage options that didn't exist a year ago.

A fifth Clean Economy tax credit arrived. The Clean Electricity Investment Tax Credit was enacted March 26, 2026 through Bill C-15, a 15% refundable credit on clean electricity generation, storage, and transmission capital, applied retroactively to property placed in service from April 16, 2024.

The CCUS tax credit got bigger and broader. Budget 2025 extended the CCUS ITC's full rates by five years, through 2035, a meaningful change for Ontario's steel and petrochemical manufacturers weighing multi-year capital plans.

Clean hydrogen and clean-tech manufacturing credits both widened. Budget 2025 added methane pyrolysis as an eligible Clean Hydrogen ITC production pathway and expanded the Clean Technology Manufacturing ITC's critical-minerals list to include antimony, indium, gallium, germanium, and scandium, directly relevant to Ontario's battery and EV supply chain.

NRC IRAP's clean technology program is mid-transition. Established in February 2025 to take over funding SDTC used to provide, it's moving toward the new Canada Innovation Corporation by fiscal year 2026-27, which may affect how it's delivered. Confirm current status with an Industrial Technology Advisor before you count on it for project timelines.

The Critical Minerals Innovation Fund's 2026 intake has closed. After a period between intakes, the fund reopened with applications accepted June 30 through August 25, 2026. As of October 23, 2026, Ontario's page says the application period is now closed.

Sources: Independent Electricity System Operator; Invest Ontario; Canada Revenue Agency; Department of Finance Canada (Budget 2025, Spring 2026 Economic Update); National Research Council Canada; Ontario Ministry of Energy and Mines.

FAQ

What's the best cleantech grant for an Ontario business in 2026?
It depends on your project's stage and sector. If you're developing EV, autonomous vehicle, or connected-vehicle technology, the OVIN R&D Partnership Fund (up to $1 million) is the most Ontario-specific route. If you're investing in large-scale industrial energy efficiency, IESO's XLerate program pays up to $300 to $450 per MWh of verified savings, covering up to 75% of eligible costs to a maximum of $15 million. If your capital spending is broader clean energy equipment, the federal Clean Technology Investment Tax Credit (up to 30% refundable) applies with no competition. If your technology is still being validated, NRC IRAP's Clean Technology Program funds that earlier stage.
Is there specific funding for EV and battery technology companies in Ontario?
Yes. The Ontario Vehicle Innovation Network (OVIN), delivered through the Ontario Centre of Innovation, funds R&D partnerships for automotive and mobility technology: up to $100,000 for proof-of-concept work and up to $1 million for commercialization, with Ontario covering up to a third of eligible costs. For larger-scale battery and critical-minerals processing investments, Invest Ontario's $500-million Critical Minerals Processing Fund negotiates direct capital support for companies building or expanding EV-supply-chain processing facilities in the province.
What is the Ontario Critical Minerals Processing Fund?
It's a $500-million provincial fund, launched by Invest Ontario in December 2025, that provides negotiated financial support to businesses building, expanding, or modernizing facilities that process or refine critical minerals used in EV batteries, defence, aerospace, and advanced manufacturing supply chains. It isn't a traditional grant application; businesses engage Invest Ontario directly to structure a tailored support package, and the fund stays open until its capital is allocated.
Do I need to be doing R&D to get Ontario cleantech funding?
No, not for most of it. IESO's XLerate program and the federal Clean Economy tax credits fund proven technology you're deploying, not inventing, and Invest Ontario's critical-minerals fund is built for capital projects, not research. Original R&D is funded separately, through NRC IRAP's Clean Technology Program, the OVIN R&D Partnership Fund's Stream 1, and the Ontario Critical Minerals Innovation Fund, for companies still developing or validating their technology.
Can I combine Ontario provincial grants with the federal Clean Economy tax credits?
Generally yes, they're different mechanisms: a provincial grant reimburses costs directly while a tax credit is claimed on your corporate return, but the same dollar of eligible cost usually can't be counted twice. The Ontario Critical Minerals Innovation Fund specifically bars concurrent funding from other Ontario government programs on the same project, so confirm the eligible-cost boundaries with each delivering agency before assuming you can layer more than one Ontario grant on identical costs.
What changed with Ontario cleantech funding in 2026?
IESO's XLerate program launched in November 2025 as a new pay-for-performance energy-efficiency incentive, and Invest Ontario's $500-million Critical Minerals Processing Fund launched in December 2025. On the federal side, the Clean Electricity Investment Tax Credit was enacted March 26, 2026, a 15% refundable credit applied retroactively to property placed in service from April 16, 2024, and Budget 2025 extended the CCUS tax credit's full rates through 2035.
Is NRC IRAP still funding clean technology projects in Ontario?
Yes. NRC IRAP's Clean Technology Program, established in February 2025 to take over funding that Sustainable Development Technology Canada (SDTC) used to provide, is actively funding through its Industrial Technology Advisor network as of mid-2026, typically $100,000 to $500,000 per project. The program is in transition toward the new Canada Innovation Corporation by fiscal year 2026-27, so confirm its current status with an ITA before committing to a project timeline around it.
Which Ontario cleantech funding does not have to be paid back?
As of October 23, 2026: IESO's XLerate and Retrofit Program, Enbridge Gas incentives, the OVIN R&D Partnership Fund, the Critical Minerals Innovation Fund and NOHFC's INVEST North Innovation Stream. FedDev Ontario's Business Scale-up money is repaid in full, and the federal credits are claimed on your tax return.
Is there clean technology funding near Kitchener-Waterloo?
Yes. FedDev Ontario funds businesses in the region, and Ontario-wide programs such as OVIN and XLerate apply there too. Public funding records name 117 Kitchener companies and 114 in Waterloo (data as of July 2026).
What new cleantech funding is available after the 2025 federal budget?
Two new Ontario programs: IESO's XLerate, up to $15M a project, launched in November 2025, and Invest Ontario's $500M Critical Minerals Processing Fund, launched in December 2025. Federally, Budget 2025 extended the CCUS tax credit's full rates through 2035, added methane pyrolysis to the Clean Hydrogen ITC and widened the Clean Technology Manufacturing ITC's critical-minerals list. The Clean Electricity ITC, 15% refundable, was enacted March 26, 2026. Details are under what changed in 2026.
How does Ontario's cleantech funding compare with the rest of Canada?
The federal Clean Economy credits are the same in every province. The provincial layer differs: Ontario splits it across OVIN, IESO and Invest Ontario, where Alberta has Emissions Reduction Alberta and Quebec has Investissement Québec. The Canada-wide picture is on our clean technology grants page.

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