Ontario net metering explained before you buy solar.

How Ontario net metering works

1. Your renewable system serves the home first

   The home uses available generation and draws from the grid when generation is insufficient.

2. Surplus electricity flows to the grid

   The utility meter records electricity drawn from and sent to the distribution system.

3. The utility applies eligible credits

   A net-metering agreement defines how exported renewable electricity is credited on the account.

4. The utility must approve connection

   The homeowner must apply, meet technical and inspection requirements and confirm connection before incurring project costs.

Credits have important limits

The Ontario Energy Board says credits can offset charges related to the kilowatt-hours consumed, but not every type of charge on the bill. Credits can be carried forward for up to 12 months; after that, unused credits are reduced to zero.

Hydro One says customers may pair eligible storage with renewable generation and should contact its Distributed Connections Group before applying. Its micro-generation application path covers projects up to 12 kW, while larger projects use a different connection-assessment process.

Seven things to confirm before signing

• Your local utility confirms eligibility and available connection capacity.
• The quote identifies who manages applications and approvals.
• The production estimate is compared with realistic annual consumption.
• The savings calculation separates eligible credits from fixed or other charges.
• The design considers how credits expire after the carry-forward period.
• Any battery has a defined purpose, operating mode and responsibility.
• Third-party ownership, financing, PPA or equipment agreements are reviewed as separate contracts.