How Net Metering Works in Canada: A Homeowner’s Guide (2025)

Written by Solenery

2 min read

How Net Metering Works is essential to understand if you’re thinking of installing solar panels in Canada. This billing arrangement allows you to send excess solar electricity back to the grid in exchange for utility bill credits, making it a key driver of solar return on investment.

But net metering rules vary by province and utility, so it’s important to know your local options. This guide breaks down who qualifies and how to make the most of your solar system.

What Is Net Metering?

How Net Metering Works allows homeowners with solar panels to feed surplus electricity into the utility grid and receive credits against their consumption.

Key Features:

Pay for what you use: You’re billed for net electricity—total used minus what you exported.
Retail-rate credits: In most provinces, you’re credited at the same rate you pay.
System size limits: Usually capped at 50 kW (Ontario, Quebec) or 100 kW (BC).
Rolling credits: Excess credits typically carry forward to future bills.

Your bi-directional meter tracks both usage and generation, helping you earn maximum value for your solar output.

How Does Net Metering Work Across Provinces?

Ontario

Eligibility: Solar systems up to 50 kW
Credits: Based on the retail rate
Carryover: Unused credits roll over for up to 12 months
Local Solar Adjustment (LSA): May apply in select municipal utility areas, offering extra value for exported solar

British Columbia

Eligibility: Up to 100 kW for residential systems
Credits: Full retail rate via BC Hydro or FortisBC
Carryover: Unused credits roll over indefinitely

Quebec

Eligibility: Systems up to 50 kW with Hydro-Québec
Credits: Awarded at the retail electricity rate
Annual reset: Credit reconciliation occurs once a year

These net metering policies make solar a practical investment in all three provinces—especially when paired with rebates and zero-interest federal loans.

How to Enroll in Net Metering

Check utility eligibility: Start by contacting your electric utility to confirm requirements.
System approval: Your solar installer must design a compliant system and get it approved.
Install bi-directional meter: Required to track electricity in and out.
Submit paperwork: Complete net metering forms and interconnection agreements.
Start earning credits: Once connected, your solar system will generate energy and savings.

Tips to Maximize Benefits of How Net Metering Works

Right-size your system: Don’t oversize—excess generation you can’t use or carry forward is often wasted.

Match usage with production: Shift appliance use to daylight hours.

Explore TOU (Time-of-Use) pricing: In Ontario, this can increase savings when aligned with solar output.

Track credits monthly: Review utility bills or online dashboards to monitor your performance.

Beyond Savings: The Role of Net Zero Marketing

While net metering helps homeowners save money and reduce dependence on the grid, it also supports a broader sustainability story.

Many Canadian solar companies now highlight their Net Zero Marketing approach, showing how residential solar adoption contributes to national carbon reduction goals and climate targets.

By participating in net metering, you’re not just lowering your electricity bill; you’re part of a growing movement toward Net Zero living.
Sharing your results (like annual CO₂ savings or energy offsets) can inspire others and strengthen awareness around clean energy adoption.

Conclusion

How Net Metering Works remains one of Canada’s most powerful solar incentives. Whether you’re in Ontario, BC, or Quebec, exporting solar power for bill credits can dramatically reduce your electricity costs, especially when combined with local rebates and the Canada Greener Homes Loan.