Did you know that retrofitting costs just two-thirds of rebuilding, meaning every third building could essentially be “free”? That’s according to a study from UBC (Efficiency Canada). It’s a reminder that saving money and energy doesn’t always require brand-new infrastructure, often, the smarter move is to upgrade what you already have.
That’s exactly what Canada’s Retrofit Program is all about, and if your business uses industrial air blowers and compressors, you could see serious savings.
Why the Retrofit Program Makes Sense for Your Business
The Retrofit Program, run by Save on Energy as part of Ontario’s IESO, helps businesses cut energy bills, lower greenhouse gas emissions, and stay competitive. You can get up to 50% of eligible costs covered for upgrades like motors, variable-frequency drives (VFDs), and compressors.
There are two main streams:
- Prescriptive: Standard, straightforward upgrades (VFDs, ECM motors, compressors, etc.).
- Custom: Complex retrofits with higher rewards, up to $1,800 per kW of peak demand saved, or $0.20 per kWh saved, capped at 50%.
In some grid-constrained areas, businesses may even qualify for bonus “double” incentives, though the 50% maximum still applies.
Where Air Blowers & Compressors Drain Energy
For many factories, compressed air is known as the “fourth utility”, after electricity, water, and natural gas. But it’s also one of the least efficient. Studies show that up to 30% of the energy going into an industrial air system is wasted through leaks, poor controls, or outdated equipment.
Common culprits include:
- Oversized compressors that run at partial load, burning unnecessary electricity.
- Fixed-speed blowers instead of VFD models that adjust to demand.
- Aging motors that run hotter and less efficiently than modern TEFC or ODP versions.
- Air leaks in distribution lines, sometimes costing thousands per year.
This is why upgrading compressors and blowers isn’t just “maintenance”, it’s a direct path to cost savings.
Why Retrofit Beats “Run to Fail”
Some businesses hesitate to invest until equipment fails completely. But a run-to-fail approach often backfires:
- Emergency breakdowns lead to costly downtime.
- Replacement at short notice means fewer choices and higher prices.
- Energy inefficiency compounds year after year.
By contrast, planned retrofits let you:
- Access 50% cost coverage through incentives.
- Choose the right equipment (VFDs, high-efficiency motors, etc.).
- Reduce bills immediately, while avoiding surprise shutdowns.
- Calculate payback periods, often just 1–3 years depending on usage and incentive level.
For industries running compressors 24/7, think food processing, automotive, or packaging, the savings add up even faster.
What That Means for Industrial Air Blowers & Compressors
If you’re buying industrial air blowers for sale, comparing manufacturers, or upgrading existing compressors, these incentives can make a big difference.
Here’s what’s on the table for air systems:
- Compressed Air Variable Speed Drive Compressor – up to $34,280
- Variable Frequency Drive (up to 300 HP) – up to $58,500
- Open Drip-Proof (ODP) Motor – up to $1,820
- TEFC Motor – up to $2,200
These supports mean Toronto businesses, and Ontario industries more broadly, can upgrade industrial air blowers and compressors without the heavy upfront burden.
The Bigger Picture: A Retrofit Mission Across Canada
Ontario’s program is part of a national retrofit mission, supported by Efficiency Canada and Natural Resources Canada, which aims to scale retrofits across the country. The goal: coordinated programs instead of patchwork rebates, more Canadian jobs, and a bigger impact on climate and energy efficiency.
Deep retrofits can slash energy use by up to 90% and emissions by up to 99%. That includes smarter compressed air and blower systems.
For businesses outside Ontario, Natural Resources Canada’s Retrofit Hub provides tools, funding programs, case studies, and training to support retrofit projects across all provinces.
Real Impact for Toronto Industries
Toronto is home to diverse industries, automotive, aerospace, food production, and advanced manufacturing, all heavy users of compressed air. For these sectors, even a 5–10% efficiency improvement can translate to tens of thousands of dollars saved annually.
Consider this example:
- A mid-sized food processor operating three 200 HP compressors could save $40,000–$60,000 a year by switching to VFD models, with the Retrofit Program covering nearly half the upfront cost.
That’s money that can go back into hiring, expansion, or new technology.
Easy Steps to Get Started
- Talk to your Save on Energy rep or a qualified partner to see if your equipment qualifies.
- Collect quotes and costing.
- Choose between Prescriptive (simple upgrades) or Custom (complex projects).
- Submit your Retrofit Program application.
- Explore national resources via the Retrofit Hub.
For businesses in Toronto, the Retrofit Program’s incentives mean you can make smarter investments in industrial air blowers and compressors without breaking the bank.
That’s where AirComp Power, a Toronto-based expert, steps in. They specialize in compressors and blowers, know how to identify energy drains, and guide you through the retrofit process, helping you maximize both savings and efficiency.
Conclusion: Ready to Save?
Cutting energy costs doesn’t require starting from scratch. With Canada’s Retrofit Program, you can save money, reduce emissions, and boost efficiency, especially with air blowers and compressors.
With up to 50% of your upgrade covered, and local partners like AirComp Power in Toronto ready to help, now’s the time to retrofit smarter.
Canada’s Retrofit Program FAQs
Who qualifies for the Retrofit Program?
Industrial, commercial, municipal, educational, and agricultural facilities in Ontario are upgrading systems that result in measurable electricity savings.
What incentives are available for compressors and air blowers?
Compressed air VSD compressors: up to $34,280; VFDs (up to 300 HP): up to $58,500; motors up to $2,200.
Should I choose the Prescriptive or the Custom stream?
Prescriptive = simpler upgrades with fixed incentives. Custom = complex projects with higher rewards (up to $1,800/kW or $0.20/kWh saved), capped at 50%.
Are there national retrofit supports beyond Ontario?
Yes, Natural Resources Canada’s Retrofit Hub provides funding, case studies, and training, plus a push for a coordinated nationwide retrofit mission.
How can AirComp Power help?
Toronto-based AirComp Power offers energy audits, equipment selection, and retrofit support for compressors and blowers, ensuring you get the most from incentives.