Net metering lets you send surplus solar power to the grid and get credit for it on your bill, so summer production can offset winter use. Every Canadian province runs its own version. Some credit exports at the full retail rate, some pay a lower fixed or wholesale price, and some wipe out unused credits once a year. Knowing your local rules is one of the most important steps in deciding whether solar makes sense and how big a system to install.
Key takeaways
- Net metering usually banks credits for exported energy at or near the retail rate. Net billing credits exports at a set price that is often lower.
- Most programs reset once a year, and leftover credits may be forfeited or paid out at a low rate.
- Rules changed in 2026 in British Columbia, where a new self-generation rate replaced net metering for new customers on July 1.
- Some rebates come with strings attached. In Ontario, rebate-funded systems under the Home Renovation Savings Program have not been eligible for net metering.
- Always confirm current terms with your utility. These programs change often.
Net metering vs. net billing
| Feature | Net metering | Net billing |
|---|---|---|
| How exports are valued | Usually kilowatt-hour for kilowatt-hour, at or near retail | A set export price, often below retail |
| What you see on the bill | Banked kWh or dollar credits | A dollar credit for exports |
| Best for | Sizing to annual use, seasonal banking | Using more of your solar on site |
| Effect of a battery | Usually minor | Can add more value |
Under either model, the solar power you use directly in your home is worth the full retail rate, because it's power you didn't buy. The difference is how your surplus is valued.
Delivery and fixed charges are another wrinkle. In several provinces, export credits offset only the energy portion of your bill, not delivery, regulatory or customer charges. That's why a home that "produces 100% of its use" still gets a bill.
Province-by-province overview
Summary as of fall 2026. Treat it as a starting point, not the final word, and confirm details with your utility.
| Province / territory | Model (approx.) | How exports are credited (approx.) | Notes |
|---|---|---|---|
| British Columbia (BC Hydro) | Self-generation rate for new customers | Paid a fixed price per exported kWh (10¢/kWh at launch) | Net metering closed to new customers July 1, 2026. Existing customers have a transition period. |
| Alberta | Micro-generation (net billing) | Smaller systems credited at your retail energy rate. Larger ones at the wholesale pool price. | Systems are sized to your annual use. Credit terms vary by retailer. |
| Saskatchewan | Net metering | Monetary credit at a fixed export rate well below retail | Systems up to 100 kW |
| Manitoba | Net billing | Monetary credit at Manitoba Hydro's excess-energy price | Credits offset other monthly charges |
| Ontario | Net metering | Credit against the energy portion of your bill | Credits carry forward up to 12 months. Systems up to 500 kW. |
| Quebec (Hydro-Québec) | Net metering option | kWh credits banked for future use | Cap raised to 1 MW in 2026. Long banking period. |
| New Brunswick | Net metering | kWh offset; surplus banked | Annual reset. Leftover credits are typically forfeited. |
| Nova Scotia | Net metering | Banked credits at the retail rate | Annual reconciliation. Leftover surplus is not paid out. |
| Prince Edward Island | Net metering | Excess kWh credited for later use | Credits expire annually. Check current size limits. |
| Newfoundland and Labrador | Net metering | Banked credits. Annual surplus paid below retail. | Province-wide program cap |
| Yukon | Micro-generation | Historically paid for exports | Intake was paused for grid-connected communities. Check current status. |
| Northwest Territories & Nunavut | Net metering (utility-specific) | Bill credits for exports | Small size caps and annual expiry are common |
Each province guide has more local context. See for example British Columbia, Alberta, Ontario and Quebec.
The 2026 changes worth knowing
British Columbia
The B.C. Utilities Commission approved changes in March 2026. BC Hydro's net metering rate closed to new customers on July 1, 2026, and new customers now go on a self-generation rate. Instead of banking kilowatt-hours for an annual true-up, exports are paid at a set price per kilowatt-hour within each billing cycle. Existing net metering customers can generally stay on the old rate for a transition period. Customers who received certain past solar rebates were moved to the new rate unless they repaid the rebate. BC Hydro also launched a community generation option, which we cover in our community solar guide.
Ontario
Ontario's net metering rules haven't fundamentally changed, but its Home Renovation Savings Program added a catch: homeowners who take its solar rebate have been barred from net metering for that system. Without net metering, surplus power you export earns no compensation. That tends to favour smaller systems sized to daytime use, often paired with a battery. Some households will come out ahead taking the rebate and others keeping net metering. Run the numbers both ways.
Quebec
Hydro-Québec raised its net metering size cap and announced a self-generation grant in 2026. Quebec's low electricity rates mean payback has historically been long, so incentives make a bigger difference there.
How net metering rules should shape your system
- Size to annual consumption under true net metering. If credits are banked at retail and reset yearly, there's little benefit in producing more than you use. Surplus is often forfeited.
- Size to daytime use under weak export credits. If exports are worth much less than retail, every kilowatt-hour you use on site is worth more than one you export. A slightly smaller system, or adding a battery, may make sense.
- Watch the reset date. If your credits reset in spring, a bank built up all summer may be partly lost. Some utilities let you choose the settlement month.
- Factor in time-of-use rates. On time-of-use or ultra-low overnight plans, when you use power matters as much as how much solar you make.
Our sizing guide and payback guide go deeper on both.
Applying for net metering
The process is similar across most provinces:
- Your installer submits an interconnection application to your utility before or during installation.
- An electrical permit and inspection are required.
- The utility may replace or reprogram your meter to measure two-way flow.
- You receive approval to operate. Don't energize the system before this.
A reputable installer handles most of this. Ask them to confirm in writing which rate or program your system will be on.
Frequently asked questions
Do I get paid cash for extra solar power in Canada?
Sometimes. Some programs pay exports as a bill credit or annual payout, often at less than retail. Others bank credits that expire. Few programs make it profitable to deliberately oversize a home system.
Does net metering work with a battery?
Generally yes, subject to your utility's interconnection rules. Under strong net metering a battery adds little bill savings and is mostly for backup. Under net billing or no-export arrangements, a battery can add real value.
Can my net metering terms change after I install?
They can, though utilities and regulators often protect existing customers for a transition period, as B.C. did in 2026. Read your interconnection agreement and keep a copy.
The bottom line
Net metering is the quiet factor that can make or break residential solar economics in Canada. Before you sign anything, find out exactly how your utility credits exports, when credits reset, and whether any rebate you're considering affects your eligibility. Check our rebate finder for current incentives, the glossary for unfamiliar terms, and your province guide for local details.
Sundamentals is an independent, non-profit education platform. Program details and prices change often — check current programs for your address in our rebate finder.