Quebec heats mostly with electricity, and Hydro-Québec's Hilo program is one of the ways the utility trims winter peaks. Hilo can include a home's electric water heater in its "challenges", short periods when participants agree to cut demand. The Hilo program contract, in the version dated August 2024, sets out how the water heater part works. This explainer summarises the clauses that matter to plumbing and heating contractors who install and replace water heaters in Quebec. The contract is in French; the summary below is our own translation of its substance.
Who can take part
The short answer: households with a working, compatible electric water heater.
Clause 1.3.2 says that for the smart water heater solution, the participant must have a functioning, compatible electric water heater system and a compatible dwelling, as shown on the Hilo website, for the whole term of the agreement. The wider program also needs a Hilo gateway and a smartphone with the Hilo app. Hilo's website, not the contract, is where the compatible equipment is listed.
How challenges and rewards work
The short answer: small rewards, capped events.
- Hydro-Québec can hold at most two challenges a day and 30 per winter period (clause 2.6).
- The reward for the water heater is $0.40 per connected water heater per accepted challenge (clause 2.9.2), with separate rates for other connected devices.
- Hydro-Québec makes no promise of energy savings or other benefits and is not responsible for a higher bill (clause 2.13).
- The utility may change the agreement from time to time, but a change cannot reduce rewards already earned (clause 9.1).
The public-health clause
The short answer: the water heater can be left out to protect water safety.
Clause 2.5 is the one contractors should know. Even when a participant accepts a challenge, Hydro-Québec may leave the water heater out if the requirements and directives of a government authority, including Quebec's public health directorate, have not been met beforehand. The contract says those requirements can change without notice. Clause 4.3 adds that the participant must follow the manufacturer's recommendations on temperature and water safety at all times. It advises waiting at least 24 hours after manually restarting a water heater before using the hot water, and advises against manually switching the water heater off for absences of less than a week. Elsewhere in the same part of the contract, the participant agrees not to change the water heater's temperature.
What the contract does not cover
The short answer: equipment lists, installation details and current reward rates live elsewhere.
The contract points to the Hilo website for the list of compatible water heaters and homes, so a model that works today may not be listed tomorrow, or the reverse. It does not set out who installs the controller hardware, and it does not describe how the smart solution manages tank temperature during a challenge beyond referring readers to the website for how it meets the water-safety criterion. The version we read is dated August 2024. Hydro-Québec can amend it, so a newer version may already apply to new participants. Before you tell a customer how Hilo will treat their new tank, read the current contract and compatibility page yourself, or point the customer to Hilo directly. When a homeowner is unsure whether they are enrolled at all, their Hydro-Québec customer account is the place to check, not the contractor.
Analysis: what it means for contractors
This section is our analysis, not part of the contract.
- Expect questions at replacement time. A homeowner enrolled in Hilo may ask whether a new tank will stay "compatible". Check the Hilo website's compatibility list before quoting, and say so in writing.
- Do not give public-health advice. Temperature settings and water safety belong with the manufacturer's instructions and public health guidance. A contractor's page can link to those sources without interpreting them.
- The money is small; the comfort story is bigger. At $0.40 per challenge, Hilo's water heater reward is modest. The marketing angle for a contractor is reliability: a correctly sized tank that still has hot water after a peak event.
- Bilingual pages matter. Quebec homeowners search in French. A French page with the same dated, sourced approach performs better than a translated sales sheet. We build those as part of local SEO for water heater work.
WaterHeaterNews.ca is a marketing newsroom; we are not affiliated with Hydro-Québec or Hilo, and we do not install equipment. Regional context is on our Quebec page. More stories are in the newsroom.
Frequently asked questions
What does Hilo do with a water heater?
Hilo's smart water heater solution lets the electric water heater take part in Hydro-Québec's peak-demand challenges. The contract requires a working, compatible electric water heater and a compatible home.
How much does a participant earn for the water heater?
The August 2024 contract sets the reward at $0.40 per connected water heater for each Hilo challenge the participant accepts. There are at most two challenges a day and 30 per winter period.
Why might the water heater be left out of a challenge?
The contract lets Hydro-Québec exclude the water heater if requirements from a government authority, including Quebec's public health directorate, were not met beforehand. Those requirements can change without notice.
Can a participant change the water heater's temperature?
The contract says the participant agrees not to change the water heater's temperature, and remains responsible for following the manufacturer's recommendations on temperature and water safety.