In a welcome move for Canadian households facing rising utility costs, the federal government, in coordination with several provinces, has approved a $500 electricity bill rebate starting in mid-2025. This rebate aims to offset the burden of high power bills and help middle- and lower-income Canadians manage inflationary pressures.
What is the $500 Electricity Bill Rebate?
The rebate is a one-time payment of up to $500 per household, designed to offer financial relief to eligible residents struggling with electricity costs. The exact amount may vary depending on province, household income, and utility usage, but the federal ceiling has been fixed at $500. It will be delivered through provincial utility programs or direct deposit, depending on where you live.
Eligibility Criteria for the Rebate
Eligibility for the rebate depends largely on annual household income, the number of residents, and whether the household is a primary residence. Most provinces require households to earn below $100,000 annually to receive the full rebate.
Some provincial governments, such as Ontario, Alberta, and British Columbia, may automatically apply the rebate to eligible accounts. In other provinces, households may need to apply online or through local service providers.
Electricity Bill Rebate Schedule by Province
| Province | Rebate Amount | Distribution Date | Application Required |
|---|---|---|---|
| Ontario | Up to $500 | From July 15, 2025 | No |
| Alberta | Up to $400 | From August 1, 2025 | Yes (online) |
| British Columbia | Flat $350 rebate | Starting July 25, 2025 | No |
| Quebec | Up to $500 | Expected August 2025 | Yes (Hydro-Québec) |
| Atlantic Provinces | Varies by region | Late July to August 2025 | Yes |
In provinces where no automatic credit is applied, eligible Canadians will need to submit their 2024 Notice of Assessment, a valid utility account, and proof of residency.
How Will You Receive the Rebate?
Where applicable, the rebate will appear as a credit on your electricity bill, or be directly deposited into the bank account linked with your CRA profile. Utility companies will issue notifications on billing statements and their websites with further guidance. Those required to apply manually can expect processing times of 3–6 weeks after submission.
Why Now? Rising Costs and Energy Affordability
The $500 rebate comes at a time when many households are reporting sharp increases in their electricity costs, driven by colder winters, higher demand, and grid modernization fees. The rebate is also part of Canada’s broader affordability plan, which includes tax credits, housing assistance, and climate action rebates.