Net Metering in Canada Explained (By Province, 2026)

Your utility installs a bidirectional meter (or configures your smart meter to measure both directions). Every hour, it records grid draw and solar export separately. On your monthly bill, exports offset draw at some rate — usually the retail rate, sometimes less.

Net metering does NOT mean the utility writes you a check every month. In most Canadian provinces, credits accumulate on your account and are used to offset future consumption. If you have leftover credits at your annual anniversary date, most utilities cash out at a discounted rate — or reset to zero.

1. Oversizing wastes money in most provinces

If your province doesn't cash out annual excess (most don't), oversizing your system just gives free electricity to the utility. Right-size to your annual consumption — no bigger. If you're planning an EV or heat pump, size to future consumption, not current.

2. Retail vs export rate matters when adding batteries

In provinces where the export rate is much lower than the retail rate (BC 9.99¢ vs 15.8¢ Step 2 retail; Manitoba ~4¢ export vs 10.6¢ retail; Saskatchewan 8.7¢ export vs 19.6¢ retail), batteries let you store your own solar for later use at retail-rate value rather than exporting it for less. Batteries don't make sense in provinces with 1:1 net metering — you'd store solar you could've sold at full retail.

3. Anniversary dates aren't birthdays

Your net metering anniversary date is set when your system is first commissioned, not January 1st. If your system turns on in November, your credit reset is November. Sizing for annual balance means matching consumption and production over that specific 12-month window.

4. Rate changes bite

If your utility raises the retail rate but keeps your export credit rate the same, your bank of credits loses purchasing power. This is why 1:1 net metering is strictly better than a fixed-rate export credit — it automatically indexes to inflation.

Ontario

Full 1:1 retail credit. Credits roll for 12 months from your anniversary. Systems sized to serve your own load are allowed up to 500 kW residential (way higher than any home needs). Local distribution company handles interconnection — Hydro One, Toronto Hydro, Alectra, Elexicon, Hydro Ottawa all use the same program framework.

BC

9.99¢/kWh flat export credit — lower than most retail rates on BC Hydro's tiered structure. Because BC Step 2 retail is 15.8¢, self-consuming your solar is worth 58% more than exporting. Batteries pencil out well in BC. Credits are cashed out at year-end at the same 9.99¢ rate.

Alberta

Alberta's deregulated market means net metering rates depend on which retailer you choose. Standard retailer plans credit exports at retail-adjacent rates; specialty 'Solar Club' plans pay 25–30¢ for summer exports and lower rates in winter. Total value depends on which plan you're on — worth shopping annually via ucahelps.alberta.ca.

Quebec

Hydro-Québec uses a kWh exchange rather than dollar credits. Every kWh you export entitles you to draw one kWh from the grid within 24 months at no cost. Excess kWh past your annual consumption is forfeit at anniversary. In practice: don't oversize in Quebec.

Nova Scotia

1:1 retail credit, monthly roll-over, annual cash-out at year-end. Legislatively protected under the Renewable Electricity Regulations, so more secure than utility-discretion programs. Systems up to 100 kW residential.