Let’s be real, electricity bills in Ontario are going up. Fast. Between time-of-use (TOU) pricing, carbon charges, and growing demand on the electrical grid, homeowners are paying more for the same power. And it’s not slowing down.
But here’s the good news: You don’t have to just sit back and take it.
With solar and net metering, your home can make its own power and when it makes more than it uses, you send the surplus back to the grid under Ontario’s Net Metering Regulation 541/05, which allows systems up to 500 kW.
At True Beacon Solar, we’ve helped hundreds of homeowners across Ontario from downtown Ottawa to small towns near Kingston take control of their energy costs. As licensed electricians and solar installers (ESA #7016796), we’ve seen how this setup changes the game for families tired of rising rates.
In this guide, we’ll break down:
- How net metering works
- What the rules are in Ontario
- Who can get it
- What kind of savings to expect
- What batteries can (and can’t) do
- And why now is the best time to make the switch
How Net Metering Works in Ontario, Explained Simply
If you’re thinking about going solar in Ontario, there’s one thing you really need to understand: net metering.
It’s not just about putting panels on your roof and calling it a day. Net metering is about how your solar power system connects to the power grid, how energy flows in and out of your home, and how you get credit for the extra electricity your panels make.
Let’s walk through it, step by step.
What Is Net Metering?
Net metering is a program that lets you send surplus energy from your solar panels to the utility grid. In return, you earn energy credits.
Later, when your panels aren’t producing enough (like at night or in winter), you use those credits to cover the power you take from the grid.
Think of it like rolling over data on your phone plan but with more value.
One important thing: you don’t get paid in dollars. Your credits are in kilowatt-hours (kWh), which is the same unit your hydro bill uses.
Who Runs It?
The Ontario Energy Board (OEB) regulates the program. The rules are part of Ontario Regulation 541/05 and apply to systems up to 500 kW.
Most homes in Ontario install systems between 4 kW and 20 kW so you’re well within range.
How the Credits Work
Here’s a real-world example:
- In July, your solar system makes 1,000 kWh.
- You only use 700 kWh that month.
- The extra 300 kWh goes into your credit bank.
- Fast forward to December. Your system only makes 200 kWh, but you use 1,000 kWh.
- The 300 kWh from July helps cover the shortfall.
Credits roll over month to month
They expire after 12 months
You can’t cash them out
So the goal is to size your system to cover your yearly usage not more, not less.
Net Metering vs. Load Displacement
People often mix these two up. Here’s a simple breakdown:
| Feature | Net Metering | Load Displacement |
|---|---|---|
| Connected to Grid | Yes (both ways) | Yes (one way) |
| Sends Power to Grid | Yes | No |
| Batteries Needed? | Optional | Recommended |
| Eligible for Credits? | ? Yes | ? No |
| Great for Outages? | Only with batteries | Yes, with batteries |
In short:
If you’re sending power out, it’s net metering.
If you’re only using the power in your home, it’s load displacement.
What’s Required to Join the Grid?
Hooking up to the grid isn’t as simple as flipping a switch. Here’s what needs to be in place:
Smart Bi-Directional Meter
Your utility will install a special meter that tracks:
- How much power you use from the grid
- How much solar power you send back
This is what lets the system credit your usage.
ESA Approvals
In Ontario, only licensed electricians can hook up your system. (True Beacon Solar is fully licensed ESA #7016796.)
The Electrical Safety Authority (ESA) checks the system before it can go live. If your system is over 10 kW, they’ll review the design ahead of time too.
Inverter Requirements
You’ll need a CSA-approved inverter that meets grid rules. These inverters must:
- Sync with the grid
- Shut off automatically during outages (for safety)
- Allow for battery upgrades down the road
At True Beacon Solar, we use:
- SolarEdge (smart string systems)
- Enphase (microinverters with individual panel tracking)
Both work great with net metering and are ready for batteries if you add them later.
A Day in the Life of Net Metering
Here’s how your power flows throughout the day:
| Time | Solar Production | Home Usage | Grid Interaction |
|---|---|---|---|
| 7 AM | Low | Low | Drawing from grid |
| 12 PM | High | Medium | Sending power to grid (crediting) |
| 6 PM | None | High | Using banked credits |
During the day, your solar might make more than you use. That’s when you send excess generation back and earn credits. Later, like during dinner or in the winter, those credits help cover your needs.
Net Metering in Ontario: What Can You Really Save?
So, you get how net metering works, now let’s talk dollars.
Is solar actually worth the money? How much can it cut your hydro bill? Here’s a closer look for folks in Ottawa, Kingston, and nearby areas we serve.
How Much Can You Save Each Month?
Here’s a real-world example we see often in Ontario:
- Average hydro bill: About $200/month
- Yearly usage: Around 9,000 to 10,000 kWh
- Recommended solar system: 7.5 to 9 kW (depends on your roof size and direction)
- Upfront cost: Roughly $25,000 to $30,000 before any rebates or loans
What Does That Mean for Your Wallet?
If your system covers most (or all) of your electricity needs, you could save around $2,400 a year.
Over 25 years? That’s $50,000+ back in your pocket.
Not bad for something just sitting on your roof.
Now, let’s be honest, you won’t cut your hydro bill down to zero. You’ll still pay fixed fees to stay hooked up to the grid (usually $40 to $60 a month). But the actual energy part? That drops way down.
With the right system, net metering helps you trade rising hydro rates for long-term savings.
It’s clean, it’s local, and best of all, it pays for itself over time.
What’s the Payback Time?
Here’s a ballpark idea of how long it takes to earn back your investment:
| System Type | Payback Time | 25-Year Return |
|---|---|---|
| Grid-Tied Solar Only | 8–12 years | 200%–300%+ |
| Solar + Battery Backup | 12–15 years | 150%–250% |
At True Beacon Solar, we go over your hydro bills and build a system that fits your actual usage. Not too big, not too small. That way, you’re not wasting credits or missing out on savings.
Time-of-Use Pricing and Solar Timing
In Ontario, the cost of power depends on when you use it:
- Off-peak (overnight): ~$0.11/kWh
- Mid-peak: ~$0.17/kWh
- On-peak (5–7pm): ~$0.29/kWh
Here’s the cool part:
Your solar system makes power mostly in the middle of the day when rates are lower. But with net metering, you build up credits you can spend later during peak times.
That means you’re basically trading cheap power for expensive power, a smart move.
How Batteries Help Your Bottom Line
Batteries don’t give you extra net metering credits but they do bring other benefits:
Peak Shaving
Store extra power during the day, then use it during the most expensive hours (5–7pm). That cuts your bills even more.
Backup Power
Keep your lights, fridge, and furnace running during blackouts. No spoiled food, no freezing nights.
Easy Financing
You can include batteries in the $40,000, 0% interest, 10-year federal loan. That makes backup power way more affordable.
Solar Incentives and Loans
Here’s what’s still available for net metering systems:
- Up to $40,000
- 0% interest
- 10-year payback
- Can be used for solar panels, batteries, or both
Note: The $5,000 Enbridge rebate is only for systems that don’t export power (called load displacement systems).
A Few Additional Costs to Keep in Mind
Before you make the leap, here are a few things every Ontario homeowner should know:
- Fixed Utility Fees Stay
You’ll always have some basic connection charges on your bill usually $40–$60/month. - Credit Expiry
Unused credits disappear after 12 months. So don’t let them sit too long. - Inverter Swap
Most inverters last 10–15 years. Expect a $2,000 replacement down the road. - Winter Slowdowns
Solar works in the winter, but less. Short days and snow can cut your output by 60–70%. Thankfully, Ontario gets over 2,000 hours of sunlight per year in many cities like Ottawa helping you build up summer credits to carry you through
But your summer credits help cover that dip.
What Gear Do You Need to Meet Ontario’s Rules?
Let’s look at what your system needs to pass inspection and connect to the grid:
A Grid-Tied Inverter
This turns the energy from your panels into usable electricity.
To meet Ontario rules, your inverter must:
- Be CSA and IEEE approved (CSA C22.2 No. 107.1 & IEEE 1547)
- Shut off automatically during outages (called “anti-islanding”)
We use trusted brands like:
- SolarEdge – Great for roofs with shading
- Enphase – Microinverters for each panel
- Sol-Ark – Works with solar + batteries
Rapid Shutdown System
All rooftop systems in Ontario must shut down within 30 seconds during emergencies. This protects first responders during fires or electrical problems.
No shutdown system? No pass.
Transfer Switch (Only if You Add Batteries)
Want backup power during a blackout? You’ll need:
- A transfer switch (manual or automatic)
- Tech that safely disconnects your house from the grid during outages
Why These Rules Matter
All these steps and checks may seem like a lot. But they’re here for a reason: safety.
Picture this: A utility worker is fixing a line after a storm. If your panels are still feeding power into that line, it could be deadly.
That’s why:
- Your system shuts off when the grid goes down
- Only approved systems can connect
- Special meters keep track of power going both ways
We follow every rule not just because we have to, but because we believe safety comes first.
What Can Go Wrong (And How We Prevent It)
We’ve seen it all and we’ve fixed plenty of bad installs from other contractors. Here’s what we avoid every time:
Skipping the load check – We always check how much power your home uses
Using the wrong inverter – We only use brands that meet Ontario’s strict rules
Permit delays – We work directly with utilities to keep things moving
Inspection fails – With in-house electricians and quality checks, we pass the first time
So your panels are installed, your bi-directional meter is ticking, and the sun is shining. But how does power actually move through your home? And what happens when the snow starts flying?
Let’s break it down, so you know what’s going on behind the scenes and how to make the most of your solar system all year long.
Use Your Credits Before They Expire
One last thing: credits don’t last forever.
You have 12 months to use your banked kWh. After that, they disappear. You won’t get a payout or refund. This is why system design and smart usage are both super important.
How Seasonal Credit Roll-Over Works
Let’s say your system produces extra in summer. Here’s a simple example:
- July: You bank 300 kWh
- August: You bank another 150 kWh
- September: You use 100 kWh
- October to January: You burn through the rest
- February: You hit zero credits again but your bill is still way lower than it used to be
That’s how net metering helps smooth out the seasons.
Solar Batteries & Net Metering in Ontario
Let’s talk about batteries those sleek, powerful boxes that store your solar energy and keep your home running even when the power goes out. If you already know about net metering, you might wonder: “Do I really need a battery too?”
It’s a good question. Ontario’s net metering program is pretty generous. But adding a battery can take your solar setup to a whole new level. Let’s break it down.
So, What Does a Solar Battery Actually Do?
A solar battery saves the extra power your panels make during the day and holds onto it for:
- Use at night
- Use during expensive “on-peak” hours (usually 5–9pm)
- Power during blackouts or storms
Net metering is like borrowing power back from the grid. But with a battery, you get to use your own power any time you want, even when the grid is down. That means more control and more peace of mind.
Can You Use a Battery With Net Metering?
Yes and this is where things get really smart.
Let’s say your system makes 30 kWh of solar power today. You only use 10 kWh. With net metering, the extra 20 kWh goes to the grid and you get a credit.
But if you have a battery?
- That 20 kWh charges your battery
- You use that saved power later during peak hours (5–9pm)
- You avoid pulling expensive energy from the grid
- Your net metering credits stay untouched for another time (like cloudy days or winter)
This is called peak shaving, and it’s a great way to save more without changing your habits.
Do You Need a Battery?
Not always. Here’s a simple way to decide:
| Scenario | Battery Needed? | Why |
|---|---|---|
| You want power during blackouts | ? YES | Solar shuts off in outages without a battery + switch |
| You live in the country and get lots of outages | ? YES | A battery means peace of mind |
| You only care about lower bills | ? NO | Net metering already saves you plenty |
| You want full energy freedom | ? YES | Battery + switch = off-grid capable system |
Fun fact: Even on a sunny day, your solar shuts off when the grid goes down. That’s due to safety rules in Ontario (CSA standards). The only way around that? A battery and a transfer switch.
What True Beacon Solar Thinks About Batteries
At True Beacon Solar, we don’t push batteries on everyone. They’re awesome but only when they make sense.
We do recommend batteries if:
- You lose power often
- You want to skip peak hydro prices
- You have must-run devices like a sump pump, medical gear, or a home office
- You want a hybrid or backup-ready setup
We install some of the best tech in the game, like:
- Tesla Powerwall
- Enphase Encharge
- Sol-Ark with custom battery banks
Each one has pros and cons. During your design call, we’ll walk you through what fits best for your home and goals.
Will a Battery Mess Up Net Metering?
Nope! You can have both.
The only rule: you can’t send battery power back to the grid. That’s just to keep reporting accurate.
Here’s how it works:
- Solar power = yes, send it to the grid
- Battery power = only use it at home
To make this all work properly, your inverter and battery system need smart programming. Don’t worry, we handle all of that and make sure it follows the rules from Hydro Ottawa, Hydro One, and the Ontario Energy Board.
What Do Solar Batteries Cost in Ontario?
Here’s a rough breakdown of common systems and pricing:
| Battery | Installed Cost | Storage |
|---|---|---|
| Tesla Powerwall | $13,000–$16,000 | 13.5 kWh |
| Enphase Encharge | $11,000–$14,000 | 10.1–40.5 kWh (stackable) |
| Sol-Ark + Bank | $15,000–$25,000 | Fully customizable |
Most homes in Ontario need around 13 to 20 kWh of backup power. That covers:
- Fridge
- Lights
- Furnace fan
- Wi-Fi and computer
- Sump pump (if needed)
Can I Finance a Battery System?
Yes and it’s a great deal.
You can use the Canada Greener Homes Loan to finance solar panels and batteries together:
- Up to $40,000
- 0% interest
- Pay it back over 10 years
- No impact on your credit check
You’ll need an energy audit (we’ll help you get that done). The loan covers:
- Solar panel systems
- Battery backups
- Panel or electrical upgrades (if needed)
Want the Best Setup? Go Hybrid.
A hybrid system gives you the best of both worlds:
- Free solar power during the day
- Credits with net metering
- On-demand backup with batteries
- Peak shaving to lower bills
- Power during outages
It’s like having a home energy plan with a built-in safety net. This setup is getting more popular every year in Ontario especially for people who want to be prepared for anything.
Final Thoughts: Is Net Metering Right for You?
Here’s the bottom line:
If you’re in Ontario and your hydro bill is $150+/month, net metering can:
- Cut your electricity costs by 70–90%
- Future-proof your home from rate hikes
- Reduce your carbon footprint
- Add value and independence to your home
And when you work with True Beacon Solar, you’re not just getting solar, you’re getting:
- Electrical expertise
- Full-service design & permitting
- Battery-ready options
- Transparent pricing
- Local, real humans to call if you ever need help
Ready to Start?
Here’s how to get going:
- Visit www.truebeacon.ca
- Email us directly: nickp@truebeacon.ca
- Call or text us at 613-701-1028
- Serving Ottawa, Orleans, Kingston, Kanata, Embrun & more!
Bonus:
Veterans & Military families always get 5% off
Home Show Specials: Up to $2,000 off limited time only!
Frequently Asked Questions
1. How does net metering work in Ontario?
When your solar panels make more power than you need, the extra goes back to the grid. In return, you earn energy credits. You can use those credits later like at night or in the winter when your system isn’t making as much power.
2. Do I get paid for excess solar energy in Ontario?
Not in cash. Instead, you get energy credits (measured in kWh) that lower your future hydro bills. These credits roll over each month and last for up to 12 months.
3. Can I go off-grid with net metering?
No. Net metering keeps you tied to the grid. If you want power during outages or want to be completely off-grid, you’ll need a battery system and a transfer switch.
4. What size solar system qualifies for net metering?
Any system up to 500 kW can qualify. But your system can’t make more than 100% of your yearly electricity use. Most homes in Ontario use systems between 5 and 15 kW.
5. Is net metering worth it in Ontario?
Yes. If your system is sized right, net metering can lower your hydro bills by 70–90%. It also helps you save money over time and adds value to your home.
6. What role does solar net metering play in promoting renewable energy in Ontario?
Net metering makes renewable energy more accessible by letting homeowners earn credits for excess power. It directly supports Ontario’s transition to clean energy by encouraging people to generate electricity from renewable sources like solar.
7. Can I really go for renewable generation and rely less on the grid?
Yes! A properly sized system allows you to generate your own electricity from a renewable energy source like solar. You’ll still be connected to the electricity grid, but you’ll draw far less from it especially in sunny months.
8. What happens to the excess electricity my panels produce?
Your system will send any excess electricity you don’t use back into the local distribution system. Through net metering, you’ll earn credits that can offset future usage, helping you balance the amount of electricity you consume across the seasons.
9. Does net metering affect my electricity rates or energy costs long term?
Definitely. While you’ll still pay basic connection fees, net metering significantly reduces your reliance on utility-supplied power, lowering your effective electricity rates and shielding you from rising energy prices over time.
10. Can I combine solar installations with energy storage or other renewable energy technologies?
Absolutely. Many homeowners pair their solar panel installation with energy storage systems for blackout protection and peak usage control. Ontario is also seeing more homes integrate additional renewable energy technologies like smart inverters and EV chargers for smarter, renewable electricity usage and even power purchase planning.