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Ontario’s Local Solar Adjustment (LSA): What You Need to Know in 2025

Written by solenery
July 9, 2025
min read

Introduction

If you’re a solar owner—or planning to become one—in Ontario, the Local Solar Adjustment (LSA) could offer an additional stream of savings beyond traditional net metering.

This emerging incentive recognizes the localized value your solar power adds to the grid, particularly during times of peak demand or in high-cost service areas.

While the program is still limited to select utilities and pilot zones, understanding how LSA works can help you future-proof your solar strategy and potentially earn extra credits.

What Is the Local Solar Adjustment (LSA)?

The Local Solar Adjustment is a performance-based credit or debit applied to your electricity bill. It’s designed by Ontario’s Independent Electricity System Operator (IESO) and participating local distribution companies (LDCs).

LSA reflects grid value: Credits are based on the value of your exported solar at a specific time and place.

Monthly adjustment: You’ll see a credit (or rarely, a debit) depending on the grid benefit your system provided.

Goal: Reduce strain on transmission infrastructure and reward solar generation during peak periods.

This adds a locational and temporal value component on top of standard net metering credits.

How Does the LSA Impact Solar Owners?

  • Credits vary by month and location: Calculations account for time of export, system output, and grid conditions.
  • Positive LSA = more money saved: Especially during summer peaks or in constrained grid zones.
  • Debits are rare: They may occur in highly saturated solar areas during low demand.
  • Incentivizes better grid behavior: Encourages homeowners to align generation with demand and avoid overbuilding systems.

Who Qualifies for the LSA?

As of 2025, eligibility includes:

  • Residential or commercial customers enrolled in net metering
  • Systems typically between 10 kW and 500 kW
  • A bi-directional meter must be installed
  • Must be located in an area where your LDC participates in the LSA pilot (e.g., Hydro One or local municipal utilities testing the program)

Note: LSA availability is not universal across Ontario—check with your local utility.

Practical Tips for Maximizing LSA Benefits

Check your LDC’s LSA participation: Not all areas offer it yet. Contact your utility or visit the IESO pilot updates page.

Right-size your system: Don’t exceed your actual energy use—this limits risk of LSA debits.

Time your consumption: Shift appliances to daytime use to reduce net exports and use solar on-site.

Monitor rates monthly: Since LSA values fluctuate, staying informed helps you plan system upgrades or usage shifts.

Conclusion

Ontario’s Local Solar Adjustment is a cutting-edge initiative that adds precision and fairness to solar billing.

While not available everywhere yet, it offers promising new value for solar adopters—especially in areas with grid constraints.

Stay proactive, track your LDC’s participation, and size your system wisely to make the most of LSA now and in the future.

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