Does Net Metering in Ontario Lower My Bills?

Net metering is a program in Ontario that lets your solar system send extra renewable power that your solar generated back to the grid, lowering your electricity costs through on-bill credits for your household or business. It’s a practical option if you want more control over energy use and long term savings.

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Does Net Metering in Ontario Lower My Bills?

What is the Net Metering Program?

When your solar system produces more electricity than you use, that excess energy is measured and credited on your bill through a net metering program. By installing a bi-directional meter when you have solar installed, the excess credits your solar produces can be used when your system produces less than you consume, such as at night or during winter months, helping balance your energy use without wasting what you generate.

To achieve net metering, your system must meet technical and safety requirements and connect correctly to your consumption point. Once connected, you continue to rely on the grid while using your own renewable energy to reduce costs and increase control. Credits carry forward for up to 12 months, so planning for future needs and the system size matters.

Benefits of Net Metering in Ontario

Investing in a heat pump system is a wise decision for numerous reasons:

Energy Credits

Extra energy becomes credits that lower future bills during low production periods.

Lower Electricity Bills

You reduce what you pay by offsetting grid electricity with your own generated power. You will still have to pay for the fixed cost of being connected to the grid.

Faster Payback

Bill savings and credits help your system recover its cost sooner. Net metering has the highest ROI for your solar cost payback, because you don’t need additional batteries.

Energy Independence

You rely less on external power sources and gain more control over your energy use.

Reduce Strain on the Grid

Your excess renewable energy supports local electricity supply during peak demand.

Contact us to see how these benefits apply to your situation.

Who is Eligible for Net Metering in Ontario?

Net metering is available to Ontario home owners and business customers who generate electricity mainly for their own use. Your system must deliver power directly to your own consumption point, without depending on the Hydro One grid distribution system to move energy elsewhere. All electricity must come from renewable sources like solar or wind, either a single source or a combination. Eligibility can also vary by location and system setup. Check page for more information.
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Eligible and Non-Eligible Charges

Eligible Charges	Non Eligible Charges
Electricity consumption charges based on energy used	Fixed monthly service charges
Electricity credits applied to energy usage	Delivery charges
Energy offset through net metering credits	Regulatory charges
Variable electricity rate portions	Taxes and other non energy fees

Net metering credits only apply to energy related charges, not fixed or administrative costs.
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How Do I Join Net Metering?

Joining the net metering program involves several clear steps:
- Start by contacting us to understand if your electricity needs warrant net metering solar set up, the technical requirements, approval process, and the net metering agreement.
- You (through your installer) will also need to work with the Electrical Safety Authority (ESA), which must inspect and approve your system before it connects to the grid.
- Next, we help you explore renewable energy options that fit your location and your transfer station that considers load and local zoning rules.
- Finally, we size your system based on past electricity use. Credits only roll forward for 12 months, so oversizing beyond a certain point brings no benefit. Systems cannot exceed 30 kW for ‘microgeneration.

For guidance through every step, contact us for more information.

Is Net Metering Better Than ‘Behind the Meter’ Solar Systems?

Ontario currently has a rebate program for displacement, or “Behind the Meter” called the Home Renovation Savings Program for solar retrofits to your home. You can get $5,000 off the cost of solar and $5,000 off the cost of battery back up, depending on the size of your system.

While the rebate is attractive to lower your upfront cost, this only allows your solar system to offset your electricity needs i) when the sun is shining and ii) by using the power stored in your back-up battery. The cost of the batteries reduces system ROI, as they need to be charged and have a substantial cost associated with them, and has an impact on the financial payback over the life of the solar system for 25 years plus.

Net metering allows your solar array to produce as much electricity that you will need over 12 months, effectively using the electrical utility company as your “back-up storage”. This makes it a better ROI over the life of the solar array. It is worth noting that you can add batteries to a net metering system, to protect down time when the grid goes down, and you can use the batteries during peak rate tier, to further reduce your electricity cost.

Since it is difficult and costly to make a switch to your system once it is set up, make sure your plan is correct the first time through with your solar system. If you want to understand which system works best for your household or business, contact us for a free assessment and discuss it with our energy advisors.
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