Net Metering: How It Works & Why It Matters
Thinking about going solar and wondering how you’ll be credited for the power you send back to the grid? The answer is net metering: a provincially regulated program that tracks the electricity your panels generate, the energy you consume, and any surplus you export. Understanding the basics will help you maximize savings and see how solar fits into your household energy strategy.
What Is Net Metering?
Net metering lets solar (and other renewable) customers connect to the utility grid, export excess power, and earn billing credits - usually at the same retail rate you pay for electricity. Every province runs its own version (Ontario’s Net Metering Program, Alberta’s Micro-Generation Regulation, BC Hydro’s Self-Generation Program, and so on), but the core idea is the same: your bidirectional “net” electricity use is what shows up on your bill.
A Day in the Life of Your Solar Roof
Sunny Hours = Building Credits
When the sun is out, your panels often make more power than your home needs. That surplus flows through your smart meter and onto the grid, spinning the meter “backward” and banking credits at the full retail rate.Evenings & High-Demand Moments = Spending Credits
After sunset (or whenever your usage briefly exceeds production), you automatically draw electricity from the grid. The credits you earned earlier offset these imports, keeping your costs low. In most provinces, unused credits roll forward bill-to-bill for 12 months before true-up.Annual True-Up = Settling the Score
Each utility sets a “settlement month.” If you’ve banked more kilowatt-hours than you used over the year, many provinces reset the balance to zero without a cash payout, so right-sizing your system matters. If you consumed more than you produced, you pay only for the net difference.
Key Benefits for Canadian Homeowners
Lower Power Bills: Credits earned in summer can slash or even eliminate charges in darker winter months.
Greener Footprint: Solar generation displaces fossil-fuel electricity and helps Canada hit its emissions targets.
Energy Independence: By producing your own power, you’re less exposed to rate hikes and grid disruptions, especially if you pair panels with batteries.
Getting Started
Check your province’s rules – Credit rates, annual true-up dates, and system-size caps vary by utility.
Size your array properly – Aim to match, not wildly exceed, your annual consumption so you don’t forfeit credits at year-end.
Choose a reputable installer – A certified Canadian installer will handle permits, engineering, and the net-metering application for you.
Monitor & optimize – Once online, use monitoring apps to track production, adjust habits, and make the most of every ray of sunshine.
Net metering turns Canada’s grid into a giant battery: you “deposit” kilowatt-hours when the sun is high and “withdraw” them when you need power later. By tapping into this program, you can shrink your bills, shrink your carbon footprint, and take control of your household energy future - one sunny day at a time!