In Ontario’s industrial sector, power reliability isn’t just a nice-to-have anymore. It’s a necessity. For manufacturers, food processors, and distribution centers, even a short power outage can lead to serious consequences. Production lines stop. Inventory spoils. Deadlines are missed. The financial and operational risks are too high to ignore.

That’s why more facilities are investing in industrial standby generators. These systems don’t just provide backup power during outages. They also help reduce electricity costs through Ontario’s Global Adjustment (GA) program. In this blog, we’ll explore how industrial standby generators are helping Ontario businesses cut costs, improve reliability, and future-proof their operations.

Why Power Reliability Is a Business Priority

Let’s say a food processing plant loses power for just 20 minutes. Production halts. Temperature-sensitive goods spoil. Orders are delayed. The ripple effect can be costly and damaging to customer relationships.

In industries like food, pharmaceuticals, and logistics, uptime is critical. Power interruptions can damage equipment, compromise safety, and lead to regulatory issues. That’s why power reliability has become a top priority for industrial operations across Ontario.

Understanding Ontario’s Global Adjustment Program

The Global Adjustment (GA) is one of the largest charges on a commercial electricity bill in Ontario. It funds long-term energy contracts, conservation programs, and infrastructure upgrades. Businesses are categorized into two classes:

• Class A customers are large users with peak demand over 1 megawatt (MW).
• Class B customers are smaller users charged based on total consumption.

Class A customers are charged based on their contribution to the top five peak demand hours on Ontario’s grid each year. This creates a unique opportunity: if you can reduce your demand during those five hours, you can significantly lower your GA charges.

How Industrial Standby Generators Reduce GA Charges

Industrial standby generators are more than just emergency power solutions. For many Ontario facilities, they are a strategic tool for reducing electricity costs. If your facility qualifies as a Class A customer under Ontario’s Global Adjustment (GA) program, you can use a generator to reduce your grid demand during peak hours. This approach is known as peak shaving.

During the five highest-demand hours on the provincial grid, your facility can switch to generator power. This temporarily removes your load from the grid, which lowers your contribution to peak demand and reduces your GA charges. It is a proactive way to turn a backup power system into a long-term cost-saving asset.

One Ontario auto manufacturer did exactly that. By installing a 2 MW natural gas generator system, they were able to significantly reduce their GA costs while improving power reliability for their operations. 

Check out that Case Study: https://www.ttpowergroup.com/case-study/auto-manufacturer.

How Much Can You Save?

The financial benefits of peak shaving can be substantial. On average, Class A participants using standby generators save between $200,000 and $500,000 per year for every megawatt of demand they shave. These savings are consistent year after year, as long as your facility accurately identifies and responds to peak events.

In the case of the auto manufacturer mentioned above, the savings were significant enough to justify the investment and strengthen their energy resilience at the same time.

What Does a Generator System Cost?

Installing an industrial standby generator does require upfront capital. A typical system costs around $1.5 million per megawatt. This estimate includes the generator unit, switchgear, fuel infrastructure, site preparation, engineering, and commissioning.

Actual costs can vary depending on several factors, such as:

• Generator type (diesel or natural gas)
• Location and permitting requirements
• Custom enclosures
• Paralleling capabilities
• Electrical system complexity

Despite the initial investment, many facilities find that the long-term savings and operational benefits far outweigh the cost.

Sample ROI: Is It Worth It?

Let’s consider a common scenario. A facility with a peak demand of 1.5 MW installs a generator system at a cost of $2.25 million. If the facility saves between $300,000 and $450,000 annually through GA reductions, the system could pay for itself in five to eight years.

After the payback period, the savings continue. The generator also provides backup protection for another 10 to 20 years, making it a smart investment for both cost control and operational continuity.

Can You Qualify for Class A If You’re Under 1 MW?

Yes, in some cases. If your peak demand is close to 1 MW—typically in the 850 to 999 kW range—you may be able to qualify for Class A by increasing your load during the IESO’s base period (May 1 to April 30). This can be done by running load banks or temporarily operating additional equipment. If successful, your facility would be reclassified as Class A the following year, unlocking access to GA savings.

What Is Peak Shaving and How Does It Work?

Peak shaving is the practice of reducing your facility’s grid demand during Ontario’s five peak hours. These hours usually occur in the summer, on hot weekdays, between 3 PM and 7 PM. By switching to generator power during these windows, you lower your peak contribution and reduce your GA charges. It’s a proactive strategy that turns energy management into a competitive advantage.

Choosing the Right Generator for Peak Shaving

Both diesel and natural gas generators are commonly used for peak shaving. Each has its advantages. Diesel generators are ideal for shorter runtimes and remote locations. They offer high power density and fast startup. Natural gas generators are better suited for longer runtimes and urban areas. They produce lower emissions and offer fuel cost savings.

The right choice depends on your facility’s infrastructure, runtime needs, and environmental goals. T&T Power Group can help you evaluate your options and select the best fit.

How Long Does Installation Take?

Installing an industrial standby generator is a multi-phase project that typically takes 6 to 12 months from planning to commissioning. The process includes site assessment, engineering, permitting, equipment procurement, installation, and testing. Planning ahead ensures your system is ready when you need it most.

Maintenance Requirements for Industrial Generators

To keep your generator system reliable and efficient, regular maintenance is essential. This includes monthly inspections, quarterly load testing, annual servicing, and remote monitoring. T&T Power Group offers full-service maintenance plans tailored to industrial operations, so you can focus on your core business while we handle the rest.

How the Global Adjustment Program Supports Resilience

Beyond cost savings, the GA program supports operational resilience. With increasing pressure on the grid from electrification, climate-related demand spikes, and aging infrastructure, having a standby generator in place protects your operations from grid outages, voltage fluctuations, and planned maintenance disruptions.

Why Now Is the Right Time to Act

The Global Adjustment program is well-established, but like any government incentive, it could change. By acting now, you can lock in multi-year savings, improve power reliability, and justify capital investment with a clear ROI. Waiting could mean missing out on significant financial and operational benefits.

How T&T Power Group Supports Industrial Clients

At T&T Power Group, we specialize in helping Ontario’s industrial facilities take full advantage of the Global Adjustment program. Our team works with manufacturers, food producers, and logistics operators to assess GA savings potential, design and install turnkey generator systems, help facilities qualify for Class A, navigate load testing strategies, and provide ongoing maintenance and monitoring.

Our solutions are customized to your facility’s size, infrastructure, and energy goals.

Frequently Asked Questions

Let’s Talk About Your Facility’s Potential

Whether you already qualify as a Class A customer or are close to the threshold, now is the time to explore how a smart standby power investment can pay for itself while protecting your operations from the next unexpected outage.

Contact T&T Power Group today to schedule a no-pressure assessment. Let’s design a generator solution that delivers long-term value for your business.