On a bright summer afternoon, a rooftop system often produces more power than the house is using. The surplus goes to the grid. Net metering is the arrangement that decides what you get for it. It is the single rule that most changes the value of a solar system, and in Canada it is not one rule at all.
The basic idea
Your utility installs a meter that records energy both ways: what you draw from the grid and what you send back. At the end of the billing period, the utility nets the two. If you exported more than you drew, you carry a credit. If you drew more, you pay for the difference.
Think of it as a bank account for kilowatt-hours. Summer deposits pay for winter withdrawals, at least in part. A 7 kW system on a two-storey house might produce a surplus in June and a deficit in December, and net metering smooths that into one annual account.
No national law
Electricity is a provincial matter in Canada, so there is no federal net metering law. Each province, and in some places each utility, writes its own rules on the points below.
- Maximum system size
- Whether credits are paid in energy (kWh) or dollars
- How long unused credits roll over
- What happens to a surplus at the end of the period
- Which customers qualify
That is why advice from a friend in another province may not apply to you. The net metering and grid hub brings our related guides together.
What the facts sheet says, province by province
The details below were reported in 2026 and may have changed. Treat them as pointers and verify with your utility or regulator.
| Province | Reported arrangement |
|---|---|
| Ontario | Net metering with a micro-generation threshold reportedly raised from 10 kW to 12 kW on 1 May 2026 |
| British Columbia | The utility regulator approved a move from the Net Metering Service Rate to a Self-Generation Service Rate from 1 July 2026, reportedly closing the old schedule to new applicants |
| Alberta | Net-billing-style arrangement with lower export credits |
| Manitoba | Net-billing-style arrangement with lower export credits |
| Saskatchewan | Cap around 100 kW, export credit below retail |
| Quebec | Size cap; credits banked at the energy rate for a period, with rules that differ from other provinces |
| Nova Scotia | Net metering with relatively high-value credits |
The two that matter most for your payback are how a credit is valued and how long it lasts. A credit worth the full retail rate is very different from one worth only the energy portion.
Credits at or near retail
In most provinces that offer net metering, each exported kilowatt-hour offsets one you would otherwise buy, so it is worth roughly what you pay per kilowatt-hour. That is the generous end of the range. Fixed charges and delivery fees may still apply, so your bill rarely drops to zero.
Rollover periods
Many programmes let you carry credits forward, often for about 12 months. After that, unused credits may reset or be paid out at a lower rate. If your system is sized too large for your yearly use, you may end up donating surplus to the utility. Matching the size to your actual annual consumption avoids that. Our guide on how many solar panels you need shows how.
Caps
Programmes limit the size of a system that qualifies. Residential systems rarely come near the limit, but a large farm or business roof might. If your project is big, check the cap first. Ontario’s threshold of 12 kW is reportedly enough for most homes, and our Ontario guide goes into the local details.
Net metering versus net billing
Some provinces credit exports at a lower rate than the retail price, which is often called net billing. The difference has a real effect on how large to build the system and whether a battery makes sense. We explain it in net billing vs net metering.
Why rules keep moving
Utilities and regulators revisit export credits as more homes install solar. A programme that is generous today may be adjusted tomorrow, which is why you should read the current tariff rather than rely on an article from last year. Some programmes protect existing customers for a fixed period. Ask whether yours does, and for how long.
A quick example
Imagine a household that exports 3,000 kWh over the spring and summer and draws 2,500 kWh more than it makes over the autumn and winter. Under a rolling net metering credit, the 3,000 offsets the 2,500 and the remaining 500 kWh carries forward or resets, depending on local rules. Under a net billing arrangement the same 3,000 kWh would be valued at a lower export rate. Same panels, different bill.
What to do next
- Find your utility’s current net metering or self-generation page and read the size cap, credit value and rollover rule.
- Ask any installer how their production estimate handles exports and credits.
- Apply to your utility before the system is switched on. The steps are in the interconnection process.
- Consider what happens to the leftover. See what happens to excess solar power.
Check the regulator or utility directly, since the rules above were reported rather than confirmed for your address.
Quick answers
What is net metering?
It is an arrangement where the solar power you send to the grid earns a credit on your bill, which offsets power you draw later. Your meter tracks both directions.
Is net metering the same in every province?
No. Each province or utility sets its own size caps, credit values and rollover periods. Some use net billing instead.
Can credits expire?
Often yes. Many programmes roll surplus credits forward for around 12 months, then reset or pay out at a set rate. Check your utility's terms.
Where to verify
Rules and prices change. Confirm current details with the official bodies below.