Net Metering in Canada 2026 | How It Works by Province

What Is Net Metering?

Net metering is a billing arrangement between you and your electricity utility. When your solar panels produce more electricity than your home is consuming at that moment, the surplus flows back to the grid. Your utility tracks that export and gives you a credit on your bill — which you can draw on later, such as at night or during cloudy weather.

Think of it as using the grid as a giant battery: you deposit energy when you overproduce, and withdraw it when you need it.

Net Metering vs. Net Billing vs. Feed-In Tariff

These three terms are often confused but mean different things:

How Net Metering Works in Practice

Here's the typical flow for a grid-tied solar homeowner in Canada:

1. Daytime production exceeds consumption — surplus flows to the grid; your meter runs backward (or a second meter logs exports)
2. Credits accumulate on your bill — each exported kWh is recorded and credited at your province's rate
3. Evening / cloudy days — you draw from the grid as normal; credits offset what you import
4. Monthly bill — you pay only the net difference between what you imported and exported
5. Annual true-up — most provinces settle any remaining credits once per year; rules on what happens to unused credits vary widely

Equipment Required

• Bidirectional (net) meter — measures both import and export; provided by your utility at no cost in most provinces
• Grid-tied inverter — converts DC solar power to AC; must be utility-approved and include anti-islanding protection
• Interconnection agreement — a formal application to your utility; your installer typically handles this

Net Metering by Province — 2026 Comparison

Here's a full comparison of net metering rules across all Canadian provinces. Credit rates and rules are based on CanREA data (updated February 2025) and provincial utility filings.

Sources: CanREA Savings page (February 2025 update), provincial utility tariff filings. Rates are approximate residential averages — check your specific utility for current figures.

Province-by-Province Deep Dive

🟢 Nova Scotia — Best Net Metering in Atlantic Canada

Nova Scotia offers one of the most homeowner-friendly net metering programs in the country. Credits accumulate at the full retail rate (~18.1¢/kWh) and any unused credits at year-end are paid out in cash at the retail rate — a rare and valuable feature. Systems up to 100 kW are eligible.

🟢 Prince Edward Island — Top Credits, Check Expiry

Maritime Electric offers true 1:1 net metering at the retail rate for systems up to 100 kW. Credits accumulate monthly and are settled annually — but unused credits at year-end expire, unlike Nova Scotia's cash payout. Size your system carefully to avoid over-producing and losing credits.

🟡 Ontario — Good Credits, Watch the Annual Forfeit

Ontario's net metering program under O. Reg. 541/05 provides full retail-rate credits (~14.1¢/kWh). The critical catch: any credits remaining after 12 months are forfeited with no cash payout. This means oversizing your system — common in other provinces — is a mistake in Ontario. Size to match your annual consumption as closely as possible.

🟡 British Columbia — Strong Credits, Watch Annual Excess

BC Hydro provides monthly 1:1 retail-rate credits for systems up to 100 kW. Monthly credits roll forward, but if you end the year with a net surplus (produced more than you consumed for the whole year), the excess is paid out at a wholesale rate, which is significantly lower than retail. FortisBC customers have a lower 50 kW system cap. Systems up to 27 kW can use BC Hydro's simplified application process.

🟡 Alberta — Flexible but Complex

Alberta's Micro-Generation Regulation covers all grid-connected renewable systems up to 1 MW — by far the largest cap in Canada. Because Alberta has a deregulated electricity market, the credit rate you receive depends on your electricity retailer, not a fixed government rate. Rates and credit expiry rules vary. Shop retailers carefully when going solar in Alberta — your choice of retailer meaningfully affects your solar ROI.

🟡 Quebec — Low Rates Limit Solar Economics

Hydro-Québec offers net metering for systems up to 50 kW at the retail rate — but Quebec's residential electricity rate is the lowest in Canada (starting at ~6.7¢/kWh), which means the value of each exported kWh is very low. Net metering works as a billing mechanism in Quebec, but the financial case for grid-tied solar is weak compared to other provinces. Off-grid applications on remote Quebec properties remain economically compelling.

🟡 New Brunswick & Newfoundland — Solid Annual Programs

Both provinces offer 1:1 retail-rate net metering with annual settlement. NB Power customers can register through NB Power's Customer-Generator Interconnection program, with systems up to 100 kW. NL Hydro provides similar terms. Neither province offers a cash payout for excess annual credits, but neither forfeits them mid-year.

🟡 Saskatchewan — Depends on Your Utility

Saskatchewan is a tale of two programs. SaskPower customers (most of the province) receive only ~7.5¢/kWh for exported energy against a retail rate of ~14.9¢/kWh — roughly 50% of retail value. However, those credits never expire, which helps offset the lower rate for grid-scale sizing. Municipal utility customers in Saskatoon and Swift Current enjoy full 1:1 retail-rate net metering — among the best economics in western Canada.

🔴 Manitoba — Net Billing, Not True Net Metering

Manitoba Hydro's Customer-Owned Generation program pays only ~4.4¢/kWh for exported energy against a retail rate of ~9.6¢/kWh — less than half the retail value. This is one of the weakest solar export compensation arrangements in Canada. For most Manitoba homeowners, the goal should be to self-consume as much solar as possible and minimize grid exports. Battery storage becomes more valuable in Manitoba than in other provinces for this reason.

How Net Metering Rules Should Affect Your System Size

Understanding your province's rules should directly influence how large a solar system you install:

How to Apply for Net Metering in Canada

The process is broadly similar across provinces, though timelines and paperwork vary by utility:

1. Choose a certified installer — most utilities require installation by a licensed electrical contractor; your installer will typically manage the application process
2. Submit an interconnection application — your utility reviews your system specs and approves the connection
3. Install the system — panels, inverter, and any required safety equipment
4. Electrical inspection — a licensed inspector signs off on the installation
5. Meter upgrade — your utility installs a bidirectional net meter at no cost in most provinces
6. Start generating credits — system goes live and your billing switches to net metering

Typical Timeline

Frequently Asked Questions

Sources & References

This guide draws exclusively on official government and authoritative industry sources. Net metering rules change — verify current details directly with your utility before making purchasing decisions.