The Benefits of Net Metering for Ontario Homeowners

Net Metering for Ontario

A utility rate program known as net metering, or NEM, obligates your electric provider to buy any excess solar energy produced by your solar panels at the full retail power rate. Know about reliable providers of net metering work in Ontario.

The excess electricity generated by your solar energy system is transmitted to the power grid when it is greater than your home requires, and your utility company pays you for it. 

Rooftop solar panels are a terrific method to cut costs because of net metering! The states with the finest net metering laws are the best for installing solar, not the ones with the most sunshine.

Let’s examine how net metering work in Ontario can quickly save you money in more detail.

What is the process of net metering?

Simply put, net metering allows you to receive credit for the solar energy you send back to the grid and offsets the electricity you will eventually purchase from the utility, allowing you to receive the entire economic worth of all the solar energy your solar panels create.

Your monthly electric expenditures may be eliminated if your solar system is sized properly. Solar panels produce the best electricity when the sun is shining in the middle of the day. 

The issue is that you use the least electricity in the middle of the day. As a result, at that moment, your home requires far more electricity than your solar panels are producing. 

Solar energy systems send their excess power to the grid when they generate more electricity than a home can use. This is the situation when net metering is useful. When a net-metered system exports excess solar energy to the grid, the utility credits the customer’s account for the full retail value of the electricity. 

When your solar panels aren’t producing throughout the night, you draw power from the grid, which causes your electric metre to spin again. The phrase “net metering” refers to a billing method where the utility computes your final bill by netting the amount of electricity you used and sends it to the grid after the billing period.

What advantages does net metering offer?

Let’s look at a few benefits that Net Metering offers:

Saving on utility bills:

Reducing utility costs is net metering’s main advantage for solar homeowners. Net metering can save several dollars on energy bills throughout your solar panel system’s lifetime.

Reduced payback times:

Payback times will be substantially shorter in areas with complete retail net metering than in those without it. This is because solar-powered homeowners will save more on their electricity bills and accelerate the amortisation of their investment. 

Your solar system’s payback period is impacted by various factors, not just net metering. How long it takes for your solar panels to pay for themselves will depend on several factors, including the size of your photovoltaic system, how much electricity you use, the installation cost, and the availability of solar incentives and rebates in your area.

Reduces the grid’s stress:

Because they lessen the strain on the electric grid distribution system, residential solar panels benefit utilities (and their consumers). Fewer people directly use power from the grid since solar homeowners use their electricity rather than the grid.

Ontario residents can benefit from renewable energy and lower their electricity costs using net metering. The net metering program in Ontario, and its eligibility standards, will all be covered in detail here. 

Overview of the Net Metering Scheme in Ontario

Under Ontario’s net metering scheme, households that use solar panels to produce renewable energy can send excess electricity back to the grid in exchange for credits on their electricity bills. The credits can be applied to future energy prices to balance them, lowering electricity costs.

The program is available to small enterprises, farms, and residences with a 500 kW maximum capacity. A feed-in tariff (FIT) scheme is also a part of the program, offering longer-term contracts for bigger-scale renewable energy installations.

Conditions that homeowners need to satisfy for participation

Homeowners must fulfil specific qualifying requirements to participate in the net metering scheme. These requirements include:

  • The renewable energy system installation must adhere to Ontario’s technical requirements and be performed by a licensed contractor.
  • The system must be wired into the grid and adhere to all electrical and safety regulations.
  • Homeowners must connect to the grid and have an active electricity account with a nearby distribution firm.
  • The electricity account and the renewable energy system must be on the same property.
  • The renewable energy system’s capacity cannot exceed the property’s electricity consumption.


Net metering is a powerful policy instrument for decreasing greenhouse gas emissions and increasing the usage of distributed renewable energy.

This helps utilities fulfil peak electricity demand without resorting to fossil fuel power plants and incentivizes private investors to put money into sustainable energy solutions. 

Net metering laws aim to produce a just and efficient method of controlling the power flow between customers and the grid, albeit these details vary by state and country.

In the grand scheme of things, net metering benefits everyone involved. It will continue to be integral to the movement toward a more sustainable energy future by benefiting customers and the environment.

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