Short answer
Net metering in Canada lets you send extra solar power to the grid and earn credits that reduce future bills. How much those credits are worth, and how long they last, varies by province and utility, and it can change your solar payback by years.
Key takeaways
- Net metering credits your exported solar power against power you buy later.
- Most programs bank summer credits for use in darker months.
- The value of an exported kWh is one of the biggest factors in solar payback.
- Rules differ in every province and change over time.
- Confirm current terms with your utility before you sign a solar contract.
Net metering in Canada is how most homes with solar connect to the grid. When your panels make more power than your home is using, the extra flows out to the grid and your utility records it. When your panels make less, you draw power back. You pay for the difference, or net, between the two.
Every province has some form of program for small solar systems, but the details differ. The key questions are how your utility values the power you export, and how long you can keep unused credits. Those two answers can change your solar payback by several years.
How net metering works in Canada
Your utility installs a bidirectional meter, or uses a second meter, that measures power in both directions. Over each billing period it compares what you imported with what you exported.
- If you imported more, you pay for the net amount.
- If you exported more, you earn a credit that carries forward.
Most programs require that your system be sized to cover roughly your own yearly use. They are not set up to let you sell large surpluses for profit.
Banking credits through the seasons
Solar in Canada produces much more in summer than in winter. A typical system might send a lot of power to the grid from May to August, then draw heavily from November to February. Banking lets summer credits offset winter bills. Many programs reconcile once a year on a set date. What happens to leftover credits at that point varies. Some expire, some roll over for a limited time, and some are paid out at a set rate.
What credits usually cover
Your bill has several parts. Energy charges, delivery charges, regulatory charges and fixed monthly fees. In some programs, credits offset only some of these. Fixed monthly charges almost never go away, even if your panels cover all your use. Ask your utility which parts of the bill your credits apply to.
Why export value matters so much
Each kWh you use directly from your panels saves you the full cost of buying that kWh. Each kWh you export is worth whatever your program credits it at. If that credit matches the full retail rate, it makes no difference whether you use solar power now or later. If the credit is lower, or credits can expire, exported power is worth less.
A typical home with solar exports a large share of its summer production. So a lower export value can cut yearly savings noticeably. Our solar payback guide shows how much the export assumption moves the result. If your export value is low, you can raise savings by using more power during the day, for example by running laundry, a dishwasher or EV charging while the sun is up.
Net metering by province: an overview
The table below lists who runs net metering or similar programs. It does not list credit values, because they vary by utility and change over time. Check your utility's current terms directly.
| Province | Who to ask | What to confirm |
|---|---|---|
| British Columbia | BC Hydro or FortisBC | Annual reconciliation date and how surplus is handled |
| Alberta | Your retailer and wire service provider (micro-generation rules) | Export credit on your retail plan, and whether a solar-specific plan suits you |
| Saskatchewan | SaskPower | Current program terms, which have changed more than once |
| Manitoba | Manitoba Hydro | How exported power is credited on your bill |
| Ontario | Your local distribution company | How long credits carry forward and which charges they offset |
| Quebec | Hydro-Québec | Self-generation option terms and credit expiry |
| New Brunswick | NB Power or your municipal utility | Annual reconciliation and treatment of surplus |
| Nova Scotia | Nova Scotia Power or your municipal utility | Credit carry-forward and any proposed rule changes |
| Prince Edward Island | Maritime Electric or Summerside Electric | System size limits and credit handling |
| Newfoundland and Labrador | Newfoundland Power or NL Hydro | Credit value and annual reconciliation |
Questions to ask your utility
- Is my exported power credited at the full retail rate, or at a different rate?
- Do credits offset delivery and regulatory charges, or only energy charges?
- How long do credits last, and what happens to leftovers at year end?
- Is there a size limit for my system?
- Do I need a new meter, and who pays for it?
- How long does connection approval usually take?
A reputable installer should help with the application, but the answers come from your utility. Get them in writing if you can. Our guide to comparing solar quotes explains how to check whether a quote's savings estimate uses the right export assumption.
Is net metering going away?
Utilities and regulators review these programs from time to time. Some provinces have changed credit rules or proposed new charges for solar owners. Existing customers are sometimes kept on older terms, but not always. Factor some uncertainty into your plans, and favour systems that pay back on self-use as well as exports.
To see how your home's usage lines up with solar output, try the solar calculator. You can also check your province's rebates and read our glossary for unfamiliar terms.
Frequently asked questions
How does net metering work in Canada?
Your utility measures power you export and import. Exports earn credits that reduce future bills, usually reconciled over a year.
Can I get paid for extra solar power in Canada?
Some programs pay out leftover credits at year end, while others let them expire. Most are designed to offset your own use, so large cash payments are rare.
Does net metering cover my whole electricity bill?
Usually not. Fixed monthly charges remain, and in some programs credits apply only to certain parts of the bill.
How do I find my province's net metering rules?
Contact your electricity utility or retailer directly, or check its website. Rules vary by utility and change, so confirm before signing a solar contract.
Want numbers for your own home?
Use the solar savings calculator with your province's prices and climate. It takes about two minutes.