Net Metering 101: How to Get Credit for Your Excess Solar Power
Introduction
Exporting surplus solar energy back to the grid can feel complex, but net metering is the mechanism that turns those extra kilowatt-hours into on-bill credits.
In this post, we’ll:
- Demystify Canadian net-metering programs
- Explain rollover credits and annual true-ups
- Share strategies to maximize the financial value of every surplus watt you produce
What Is Net Metering?
Net metering allows you to export excess solar generation to the grid in exchange for bill credits.
Key Features:
- Credit structure: Most programs offer kWh-for-kWh credit at retail or regulated export rates
- Cash flow benefit: Offsets future consumption instead of issuing payouts
- Rollover rules: Some utilities allow unused credits to carry over for more than 12 months
💡 Pro Tip: Ask your utility if credits roll over annually or expire—this can significantly affect your savings.
How Credits Work
| Feature | Description |
|---|---|
| Rollover Period | 12 months in most provinces |
| Credit Type | kWh-for-kWh at retail or fair-market export rate |
| Annual Settlement | Some utilities pay out or reset remaining credits |
| Interconnection Fee | $200–$500 for meter upgrade and application fees |
| System Size Limits | Typically capped around 10 kW for residential customers |
Interconnection & Application Steps
✔ Site Assessment
Ensure your system design meets local technical and structural requirements.
✔ Utility Application
Submit specs, pay application fees, and begin net-metering paperwork.
✔ Meter Upgrade
Your utility installs a bi-directional meter to measure imports and exports.
✔ Final Commissioning
Pass inspections and get grid-connection approval.
Maximizing Your Net-Metering Benefits
- Load Shifting
- Run high-use appliances (e.g. EV chargers) during midday solar production.
- Time-of-Use Awareness
- Export during on-peak hours for higher-value credits.
- Battery Storage
- Store excess energy during the day for use at night or during outages.
- Seasonal Strategy
- Bank summer surplus credits to offset winter demand.
Regional Net-Metering Variations
- Ontario: 1:1 retail credit, 12-month rollover, annual true-up
- Alberta: Regulated net billing; terms vary by provider
- British Columbia: Credits expire after 12 months (BC Hydro)
- Québec: Market-rate billing with annual reconciliation (Hydro-Québec)
- Atlantic Canada: NB Power, NS Power, and PEI each have unique program structures
Conclusion
Net metering is key to unlocking the full financial potential of your solar system. Every kilowatt-hour you export turns into real savings—but only if you understand how credits, limits, and provincial rules work.
Want to see how net metering will impact your ROI?