As energy prices rise across Canada, the government is taking action to ease financial stress through a $500 electricity bill rebate in 2025.
Designed to support low-income households, small businesses, farmers, and eligible renters and homeowners, this rebate is part of a nationwide effort to help Canadians cope with inflation and rising utility costs.
This financial relief is being issued through both federal programs (including the CRA) and provincial governments, such as Alberta and Ontario.
Whether you receive it as a credit on your utility bill or a direct deposit from the CRA, it’s important to understand how the program works.
Overview of Electricity Rebate Programs in Canada
Here’s a look at the key rebate programs available across Canada in 2025:
| Program | Region | Benefit | Eligibility |
|---|---|---|---|
| Ontario Electricity Rebate | Ontario | % discount on monthly bills | Residential and small business users |
| HER+ Rebate | Nationwide | Up to $10,000 for efficiency upgrades | Homeowners upgrading heating and insulation |
| Banff Green Rebate | Alberta (Banff) | Rebates for cisterns and eco upgrades | Banff residents |
| Alberta Electricity Rebate | Alberta | $500 across several months | Homeowners, small businesses, farmers |
| $500 Affordability Cheque | Nationwide | One-time $500 payment | Low-income Canadians via CRA |
What Is the $500 Electricity Rebate?
The $500 electricity rebate is a federally and provincially funded support payment to help Canadians manage rising electricity costs. It may be:
- Applied monthly as a bill credit on your utility statement
- Delivered as a one-time affordability cheque from the CRA
- Issued by provincial governments like Alberta under their own electricity rebate initiatives
On your bill, this rebate may appear as “GOA Utility Commodity Rebate” or a similar line item depending on your region.
Key Payment Dates for 2025
The $500 rebate will be disbursed in three key phases throughout 2025:
| Rebate Period | Details |
|---|---|
| Jan – Apr 2025 | Monthly utility bill credits continue from 2024 cycle |
| Mar – Apr 2025 | Final CRA affordability cheque processed and issued |
| Apr 2025 | $500 one-time cheque released to eligible residents |
If you’re eligible through the CRA, expect your cheque or direct deposit to arrive in April 2025. Utility bill credits depend on your billing cycle and energy provider.
Eligibility Criteria for the $500 Rebate
To qualify for the electricity rebate or affordability cheque, you must meet the following conditions:
- Residency: Must be a Canadian resident as of December 31, 2025
- Age: Must be 18 years or older
- Income Threshold: Must fall within low-income brackets (adjusted annually)
- Tax Filing: Must have filed a 2025 tax return
- Electricity Use Limits:
| Group | Usage Limit (Per Year) |
|---|---|
| Homeowners/Renters | Below 250,000 kWh |
| Small Business Owners | Below 250,000 kWh |
| Farmers | Below 25,000 kWh |
Applicants enrolled in other subsidized electricity programs may be excluded from this rebate.
How to Receive the Rebate
For most Canadians, no separate application is required. You will automatically receive the payment if:
- You’re already enrolled in eligible utility programs
- You meet CRA affordability cheque requirements
Here’s how the rebate is issued:
- Utility Bill Credit: Automatically applied monthly by energy providers
- CRA Payment: Direct deposit or cheque sent to your address or bank account on file
Tip: Make sure your bank details and address are up to date with the CRA to avoid delays.
The $500 electricity bill rebate in Canada for 2025 is a much-needed lifeline for households and small businesses facing rising energy costs.
With a mix of monthly bill credits and one-time CRA payments, the program ensures Canadians receive timely financial support without the need for complex applications.
To benefit fully, file your taxes on time, verify your banking information, and stay informed through official channels. This rebate, along with Canada’s energy efficiency incentives, offers immediate relief and long-term cost-saving opportunities.
FAQs
Do I need to apply for the $500 rebate manually?
No. Most payments are automatic if you meet income and residency criteria or are already on supported utility plans.
Can I receive both the CRA cheque and a utility bill rebate?
Yes, some households may receive both, depending on their province and program participation.
What if I don’t see the rebate on my bill or in my bank account?
Contact your utility provider or the CRA to check eligibility and update your information.