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

Written by solenery

July 9, 2025

min read

Introduction

Thinking of installing solar panels? Then understanding net metering in Canada is a must.

This billing arrangement lets you 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 how net metering works, who qualifies, and how to make the most of your solar system.

What Is Net Metering?

Net metering 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 Net Metering Benefits

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.

Conclusion

Net metering 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.