As Ontario’s greenhouse sector continues to expand—especially in regions like Windsor-Essex and Chatham—growers are seeking smarter, cleaner, and more cost-effective ways to manage energy. Two technologies often considered are Cogeneration (CHP) and Battery Energy Storage Systems (BESS). While both offer benefits, recent developments in incentives, grid integration, and sustainability are tipping the scales in favor of BESS.
What Is BESS and How Does It Compare to Cogeneration?
| Feature | Battery Energy Storage (BESS) | Cogeneration (CHP) |
|---|---|---|
| Primary Function | Stores electricity for later use | Simultaneously produces electricity and heat |
| Fuel Source | Electricity (often from solar or grid) | Natural gas or biomass |
| Emissions | Zero (if charged from renewables) | Emits CO₂ and NOx |
| Maintenance | Low | High (mechanical systems) |
| Scalability | Modular and flexible | Requires significant infrastructure |
| Grid Services | Peak shaving, demand response, backup power | Limited grid interaction |
| Incentives | Strong support via IESO and SaveOnEnergy | Fewer new incentives in 2025 |
Case Studies from Ontario
1. Windsor-Essex Greenhouse BESS Pilot
A group of greenhouses in Windsor-Essex participated in a Grid Innovation Fund project led by the University of Windsor and IESO. The project deployed BESS to manage peak demand and integrate solar generation. Results showed:
- Up to 30% reduction in peak demand charges
- Improved energy resilience during outages
- Enhanced ROI when paired with LED lighting upgrades[1]
2. Essex Powerlines DER Study
Essex Powerlines evaluated BESS across multiple greenhouse operations. Findings included:
- Value stacking (demand charge reduction + energy arbitrage + backup power)
- 2/3 cost reduction for utilities and customers through shared ownership models [2]
Incentives in 2025
Battery Energy Storage Incentives
- SaveOnEnergy and IESO continue to offer funding for behind-the-meter BESS projects, especially when paired with solar or LED upgrades.
- Grid Innovation Fund supports pilot projects and DER integration.
- IESO Capacity Auctions allow BESS to earn revenue by providing grid services.
Cogeneration Incentives
- Most CHP incentives have been phased out or are limited to specific industrial applications.
- Natural gas-based systems face increasing scrutiny under Ontario’s decarbonization goals.
Why Greenhouses Should Consider BESS Over CHP
- Cleaner Energy: BESS aligns with Ontario’s push toward a zero-emissions grid.
- Better ROI: When paired with solar, BESS can significantly reduce electricity bills and peak demand charges.
- Lower Risk: No fuel contracts, emissions compliance, or mechanical complexity.
- Future-Proof: BESS can participate in evolving grid programs and markets.
Download Our Latest Case Study
We’ve compiled a detailed case study showing how Ontario greenhouses are using solar + BESS to cut costs and boost sustainability—even without the old SaveOnEnergy solar incentives.
Interested in exploring how BESS could work for your greenhouse?
Let’s talk—book a free consultation today.
References
[1] Battery Energy Storage System Safety for Greenhouses
[2] DER Case Studies in Ontario