The hottest summer days will soon give some Ontarians the opportunity to earn some cold, hard cash by simply sweating it out.

Energy Minister Todd Smith announced $342 million in new funding for various energy efficiency programs, including one that'll pay certain households a yet-to-be-determined amount of money to let Ontario's energy operator reduce their cooling load during peak demand times.

There's also more money for retrofits, to help greenhouses up their energy efficiency game, and to get more folks on board with decentralized generation technologies. To be eligible, a household has to have central air conditioning or a heat pump and a smart thermostat. There are about 600,000 smart thermostats in Ontario, according to government figures.

The move comes as Ontario faces a looming energy shortage thanks to a growing population and economy, and more electric vehicles rolling across Ontario's roads.

Other recent decisions, like potentially extending and refurbishing the Pickering nuclear plant, take aim at the same target of ensuring enough supply through reducing demand or getting more generation.

READ MORE: Ontario asks to extend Pickering nuclear plant to 2026, eyes refurbishment

"You know, as the folks at the (Independent Electricity System Operator) always say, the most affordable type of energy is the energy you don't have to build. And with these types of energy efficiency programs in the Conservation and Demand Management program, this is generation that we don't have to build," Smith said at the Tuesday press conference.

"Energy efficiency is among the lowest-cost ways for meeting system needs," said Chuck Farmer, vice-president of planning, conservation and resource adequacy at the IESO.

In 2019, the IESO released a report arguing Ontario could seriously reduce its total future electricity demand by going harder on energy efficiency measures.

That same year, however, the PC government axed a slate of conservation programs, known as Conservation First, saying at the time it would save money.

Earlier this year, Smith tasked the Crown corporation with designing new energy efficiency programs "that could help families and businesses reduce their electricity use so that they can save money on their energy bills and at the same time help us to meet the province's growing electricity system needs," Smith said on Tuesday.

Mark Winfield, a professor of environmental studies at York University, was glad to see the government "re-engage on energy efficiency," but doesn't think Tuesday's announcement will accomplish much.

"This is throwing some money at demand response, which is basically shifting demand around in time," he said. "It doesn't really reduce total energy demand at all."

"We would need a much more comprehensive strategy, and one that encompasses natural gas as well as electricity, if you're going to make some serious progress in terms of reducing greenhouse gas emissions and also reducing potential future electricity demand," he said.

Liberal MPP Ted Hsu, his party's energy critic, said spending more on energy efficiency measures is "low-hanging fruit" but it'll help "save money and fight climate change."

"This is good news. But, had the government not waited so long, Ontario could be much further ahead in its energy conservation efforts. The government did not look ahead in 2019 and it is now scrambling again to have Ontario catch up," he said on Twitter.

For NDP interim leader Peter Tabuns, who also serves as his party's energy critic, it's too little too late.

"The programs Minister Todd Smith announced Tuesday don’t even replace the electricity conservation programs that Doug Ford's government recklessly cut in 2019. Ford has wasted years on cuts and political games, costing families a lot of money and putting our energy system on a path towards a shortage," he said in a statement.

Tabuns said the announcement is tantamount to "tinkering around the edges" versus "working on a comprehensive, transparent plan to secure our energy supply."

Green Leader Mike Schreiner welcomes "any investment in energy efficiency," but said, "this program is woefully inadequate to address the climate crisis and the electricity shortage Ontario faces."

Schreiner wants the province to get back into providing building retrofit incentives. The PC government scrapped a building retrofit program — which was funded by proceeds from Ontario's cap-and-trade program — in 2018.

Buildings are responsible for a significant chunk of Ontario's greenhouse-gas emissions, according to the Canada Energy Regulator.

The transportation sector is the most greenhouse-gas intensive in the province, responsible for 32 per cent of emissions. Residential and commercial buildings are second, accounting for 25 per cent of total provincial emissions. Industry and manufacturing is third, at 23 per cent.

Ontario eyes return to energy efficiency as supply shortage looms

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