What is Net Metering?
Net metering is a billing arrangement that allows solar homeowners in Canada to receive credits on their electricity bill for surplus energy they send to the grid. When your solar panels produce more electricity than you're using, the excess flows back to the grid and your meter effectively runs backward.
Net metering policies vary by province, with most major provinces offering some form of net metering program. Understanding your province's specific rules is important for calculating your solar savings.
How It Works
- 1.Your solar panels generate electricity during the day
- 2.You use what you need in your home first
- 3.Surplus electricity flows to the grid
- 4.Your meter records the net difference
- 5.You receive credits on your electricity bill
How Net Metering Billing Works
Under net metering, your electricity bill reflects the “net” difference between what you consumed from the grid and what you exported. In months where you generate more than you use, credits roll over to future months.
Credit Rollover
In most Canadian provinces, excess credits roll forward on a monthly basis. The settlement period varies by province — some settle annually, others allow indefinite rollover. Check with your utility for specific terms.
Net Metering by Province
| Province | Credit Rate | System Cap | Status |
|---|---|---|---|
| Ontario | Full retail rate | 500 kW | Active |
| British Columbia | ~$0.10/kWh credit | 100 kW | Active |
| Alberta | Full retail rate | 5 MW | Active |
| Saskatchewan | Full retail rate | 100 kW | Active |
| Nova Scotia | Full retail rate | 100 kW | Active |
Important: Net metering policies change frequently. Check with your utility and provincial energy regulator for current rules.
Billing & Credits
Summer Months
Credit Builder
High generation builds credits for winter use
Winter Months
Credit Use
Lower generation offset by accumulated credits
Annual True-Up
Settlement
Excess credits settled at end of billing cycle
Alternatives to Net Metering
Battery Storage
As net metering rates decline in some provinces, battery storage becomes more attractive. Storing surplus energy for evening use avoids the gap between retail and export rates.
Self-Consumption Optimisation
Scheduling high-consumption appliances (EV charging, dishwasher, laundry) to run during peak solar hours maximises the value of your generation, regardless of net metering rates.
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