Net metering defined: credits for the power you export
Net metering is a billing arrangement in which the electricity a solar system sends to the grid is credited against the electricity you draw from it, so you pay only for the net difference. Rules are set province by province, and some places use a variant called net billing, so always check your own utility's terms.
How does net metering work?
A home with solar panels produces power in daytime, often more than it uses, and draws from the grid at night. A meter records both directions. Under net metering, the exported kilowatt hours are credited against the imported ones, so a bill reflects only the difference. If you export more than you import, you usually receive a credit that carries forward for a period set by the program. A refresher on the unit itself is in what is a kilowatt hour.
A worked example with assumed numbers: in a month you import 600 kWh and export 350 kWh. The net is 250 kWh, and you pay for those, plus any fixed and delivery charges that still apply. If you had exported 700 kWh, the net would be minus 100 kWh, which becomes a credit.
What is the difference between net metering and net billing?
Strictly speaking, net metering credits energy one for one. Net billing values exported power in money, at a rate set by the program, which may differ from the rate you pay to buy electricity. Names are used loosely in everyday talk, and one province's program may combine features of both. What matters to you is the answer to three questions: at what rate are exports credited, how long do credits last, and are there caps on system size.
Alberta offers a good example of the details. Read net metering in Alberta and Alberta's microgeneration regulation, then compare with Alberta versus Ontario to see how provinces differ.
Who sets the rules in Canada?
Electricity is a provincial matter, and in practice the rules are set by provincial governments, regulators and utilities. Some provinces have long-standing programs, others have changed or closed theirs to new customers, and some have none beyond a basic interconnection process. Eligibility often depends on system size relative to your own use, and on the type of customer. The Government of Canada does not set a national net metering rule. For the current terms, check your provincial energy ministry and your electricity utility.
Why does net metering matter for solar economics?
The value of an exported kilowatt hour can be higher or lower than the one you avoid buying, and that changes the payback of the system. Where exports earn full retail credit, a system sized to your annual use works well. Where exports earn little, you gain more from using the power on site, and a battery or a change in when you use appliances may help. The sizing logic is covered in how many solar panels to power a house, and the money side in solar panel payback period. For storage, see solar battery storage in Canada.
What should you check before you sign a solar contract?
Confirm in writing which program applies to your address, what the credit rate is, how long credits last, any annual true-up date, and who pays for the new meter. Ask what happens if the program changes after you install. Installers can explain, but the utility's own documents are the authority. Grid connection is compared with other setups in grid-tied versus off-grid solar.
The Drake Landing Solar Community did not export electricity at all. It stored solar heat for winter instead, as described on the how it works page.
Quick answers
What does net metering mean?
It means the electricity you send to the grid is credited against what you draw, so your bill reflects only the net amount. The details are set by each province and utility.
Is net metering the same everywhere in Canada?
No. Rules differ by province and sometimes by utility, including the credit rate, how long credits last and the allowed system size.
What is net billing?
It credits exported power in dollars, at a rate set by the program, rather than one kilowatt hour for one kilowatt hour. The rate may differ from the retail price.
Do I need a special meter for net metering?
Usually yes, a meter that records both imports and exports. Your utility will say whether it supplies it and who pays.