Ontario's net metering program allows homeowners with solar panels to receive bill credits for surplus electricity sent to the grid. Regulated by the Ontario Energy Board (OEB), the program is available through all licensed distribution utilities — but the details of how credits are calculated and carried forward matter significantly for solar payback analysis.
Net metering is a billing arrangement rather than a rebate program. When your solar panels produce more electricity than you're using at a given moment, the surplus flows back to the grid and your electricity meter runs backwards — crediting your account at the same retail rate you pay per kWh.
Over the course of a month, your bill reflects the net of electricity consumed from the grid versus electricity sent to the grid. In summer months, many Ontario solar homeowners end up with a credit that rolls forward to offset winter bills.
The Ontario Energy Board regulates net metering requirements and mandates that all licensed distribution companies (LDCs) — including Toronto Hydro, Hydro One, Alectra, and others — offer the program. The specific rate you receive depends on your electricity plan (tiered vs time-of-use).
Ontario's Feed-In Tariff (FIT) program, which paid homeowners premium rates for all solar generation regardless of consumption, ended for new applicants years ago. Under net metering, you receive the retail rate — not a premium rate. This means the value of solar in Ontario is lower than it was under FIT, but still meaningful for well-sited systems with adequate base consumption to offset.
Net metering is a necessary component of the solar economics calculation, but it doesn't answer the question on its own. Whether solar makes sense depends on your roof orientation, shading, consumption level, and how much of your generation you can self-consume (use directly rather than exporting). We model all of these variables as part of our independent solar advisory service.
Homeowners who have recently added a heat pump for heating have a larger base consumption to offset, which generally improves solar economics under net metering. We typically recommend electrifying home heating before sizing a solar system, precisely for this reason.
Net metering is one part of the solar calculation. We model all the variables and give you an honest answer before you talk to a single installer.
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