Atlantic Canada's most affordable electricity — backed by nuclear power and Quebec hydro imports. Moderate solar ROI with a twist: the VAR surcharge that makes bills less predictable than they look.
New Brunswick has Atlantic Canada's most affordable residential electricity — approximately 15.4¢/kWh blended — thanks to a diversified generation mix anchored by nuclear power at Point Lepreau and hydro imports from Quebec. For solar, the moderate rate produces moderate ROI — but NB's unique VAR surcharge creates ongoing bill uncertainty that makes solar's fixed-cost generation increasingly attractive to rate-conscious homeowners.
NB Power's residential rates are regulated by the New Brunswick Energy and Utilities Board (EUB). The April 14, 2026 rate schedule uses a two-tier energy structure plus a separately calculated annual VAR surcharge.
| Rate Component | Rate (April 2026) | Notes |
|---|---|---|
| Customer Charge (fixed) | ~$16.06/month | Fixed regardless of consumption |
| Tier 1 Energy Rate | ~12.0¢/kWh | First 1,000 kWh/month winter; lower threshold in summer |
| Tier 2 Energy Rate | ~14.2¢/kWh | All consumption above Tier 1 threshold |
| VAR Surcharge | ~0.5–2.0¢/kWh | Annual adjustment — varies year to year |
| HST | 15% | New Brunswick's harmonized sales tax on electricity |
| All-In Blended Average | ~15.4¢/kWh | Including customer charge, VAR, and 15% HST |
⚠️ Summer vs Winter Thresholds: NB Power's Tier 1 threshold is higher in winter than summer — recognizing that New Brunswick homes consume significantly more electricity for heating in cold months. Heavy summer users hitting air conditioning are more likely to hit the higher Tier 2 rate.
The Variance Account Recovery (VAR) surcharge is one of the most misunderstood items on New Brunswick electricity bills — and a key reason actual bills are often higher than the published base rates suggest.
NB Power forecasts its annual costs and sets rates accordingly. When actual costs differ — due to fuel prices, unplanned outages, or storm damage — the difference accumulates in the Variance Account. The EUB then approves annual recovery of this balance through a per-kWh surcharge on your bill.
☀️ Why VAR Makes Solar More Valuable: Every kWh your solar panels generate is immune to VAR surcharges — regardless of what fuel markets or storm seasons do to NB Power's costs. Solar locks in your generation cost permanently, eliminating both base rate increases AND VAR volatility on the power you self-produce.
New Brunswick has one of the most diversified electricity generation mixes in Atlantic Canada — a key reason its rates are lower than neighbouring provinces.
⚛️ The Nuclear Advantage: Point Lepreau is NB Power's single biggest rate advantage over NS Power and Maritime Electric. Nuclear generates at very low marginal cost — no fuel price exposure, no weather dependence. With the station licensed through approximately 2040, New Brunswick is insulated from fossil fuel cost pressures for at least another 15 years.
New Brunswick has Atlantic Canada's lowest residential electricity rate — a significant advantage over its Maritime neighbours:
ℹ️ Why Is NB Cheaper Than NS and PEI? Three key advantages: (1) Nuclear generation at Point Lepreau at very low cost; (2) Quebec hydro imports at competitive wholesale rates; (3) Crown corporation ownership without private shareholder return requirements — unlike NS Power (Emera) and Maritime Electric (ENMAX).
| System Size | Annual Production (Fredericton) | Annual Savings at 15.4¢ | Est. System Cost | Simple Payback |
|---|---|---|---|---|
| 5 kW | ~7,100 kWh/year | ~$1,093/year | ~$15,000–$20,000 | 14–18 years |
| 10 kW | ~14,190 kWh/year | ~$2,185/year | ~$25,000–$32,000 | 11–15 years |
| 15 kW | ~21,285 kWh/year | ~$3,278/year | ~$35,000–$45,000 | 11–14 years |
| Off-Grid (rural NB) | Eliminates grid entirely | Full bill + VAR eliminated | ~$25,000–$50,000 | Variable by property |
*Based on Fredericton irradiance (~1,419 kWh/kW/year). Assumes 3% annual rate increases and 0.5%/year panel degradation.
🌲 Rural NB Off-Grid Opportunity: New Brunswick's Saint John River Valley, Miramichi region, and Fundy coast include many remote properties where grid connection costs $20,000–$80,000+. Off-grid solar eliminates both the connection cost AND ongoing NB Power bills including VAR surcharges — often producing compelling economics regardless of NB's moderate rate level.
| Household Type | Monthly Usage | Pre-Tax Bill | After 15% HST | Annual Cost |
|---|---|---|---|---|
| Apartment / 1 bedroom | 300–500 kWh | ~$52–$83 | ~$60–$95 | ~$720–$1,145 |
| Small home / 2 bedroom | 600–900 kWh | ~$88–$135 | ~$101–$155 | ~$1,215–$1,860 |
| Average NB home | ~1,000 kWh | ~$134 | ~$154 | ~$1,850 |
| Larger home / electric heat | 1,500–2,500 kWh | ~$193–$312 | ~$222–$359 | ~$2,660–$4,305 |
| Rural property / well pump | 2,000–3,500 kWh | ~$254–$432 | ~$292–$497 | ~$3,500–$5,965 |
📈 Rate Outlook: NB Power rates have increased ~23% since 2020. Further increases of 3–5% annually are expected through 2030, driven by infrastructure investment, renewable additions, and Point Lepreau life extension costs. By 2030, the all-in blended rate could reach 18–19¢/kWh — improving solar payback to 10–12 years.
The chart below shows estimated daily solar production per kW of installed capacity in Fredericton. Coastal areas receive slightly less due to marine fog; inland regions receive slightly more.
❄️ Winter Planning Note: NB winters reduce solar output by approximately 66% vs summer. Off-grid systems should plan for 5–6 days battery autonomy and backup heating for November–February. A panel tilt of 55–60° helps shed snow and capture low winter sun.
→ Use our Solar Panel Calculator with NB's seasonal irradiance to properly size your system.
✅ System Size
Up to 100 kW for residential customers — adequate for any home installation.
✅ Credit Rate
Credits at the retail energy rate including current VAR component. Annual true-up each year.
⚠️ Customer Charge Remains
NB Power's ~$16.06/month customer charge cannot be offset by net metering credits.
ℹ️ Timeline Tip: Apply in January or February if you want your system operational before the best summer generation window. Spring is the busiest period for applications.
| Year | Base Blended Rate | All-In (incl. VAR + HST) | YoY Change |
|---|---|---|---|
| 2020 | ~11.0¢/kWh | ~12.5¢/kWh | — |
| 2021 | ~11.3¢/kWh | ~12.9¢/kWh | +3.2% |
| 2022 | ~11.8¢/kWh | ~13.5¢/kWh | +4.7% |
| 2023 | ~12.5¢/kWh | ~14.2¢/kWh | +5.2% |
| 2024 | ~13.0¢/kWh | ~14.8¢/kWh | +4.2% |
| 2025 | ~13.3¢/kWh | ~15.1¢/kWh | +2.0% |
| 2026 (current) | ~13.6¢/kWh | ~15.4¢/kWh | +2.0% |
📈 23% increase since 2020: Rate increases have moderated to ~2% in 2025–2026 but 3–5% annual increases are expected through 2030 as NB Power continues infrastructure investment and Point Lepreau life extension planning. The VAR surcharge adds additional year-to-year variability.
NB Power's residential rates effective April 14, 2026 work out to approximately 15.4¢/kWh blended, including the fixed customer charge (~$16.06/month), two-tier energy charges (Tier 1 ~12.0¢, Tier 2 ~14.2¢), annual VAR surcharge (~0.5–2.0¢/kWh), and 15% HST. New Brunswick has Atlantic Canada's lowest residential electricity rates.
The Variance Account Recovery (VAR) surcharge recovers the difference between NB Power's forecasted and actual costs each year. When fuel prices spike or storms cause unexpected repairs, the balance accumulates and is recovered through an EUB-approved annual per-kWh surcharge. In high-variance years it can add 1.5–2.0¢/kWh. Solar generation eliminates your exposure to VAR surcharges on the power you produce yourself.
Point Lepreau Generating Station is a 660 MW CANDU reactor about 28 km southwest of Saint John. It provides ~30% of NB's electricity at very low marginal cost — a key reason NB rates are lower than NS and PEI. Refurbished in 2012 and licensed to approximately 2040, NB Power is exploring life extension options beyond that date.
At ~15.4¢/kWh, payback periods of 11–15 years are achievable with 25-year savings of $17,000+. Solar is most compelling for rural high-consumption properties, homeowners concerned about VAR volatility, and remote properties where off-grid eliminates grid connection costs. NB's rising rate trajectory also means today's solar installations look better every year.
Three key advantages: (1) Point Lepreau nuclear at very low cost; (2) Quebec hydro imports at competitive wholesale rates; (3) Crown corporation ownership without private shareholder returns — unlike NS Power (Emera) and Maritime Electric (ENMAX/Calgary). The combination produces rates 20–25% below NS and PEI for comparable consumption.
At ~15.4¢/kWh, NB ranks in the lower-middle range nationally — above Quebec (8.3¢), Manitoba (10.6¢), and BC (10.97–14.08¢); roughly equal to Newfoundland (15.8¢); but well below Ontario (17.0¢), Saskatchewan (18.6¢), NS (19.1¢), PEI (19.7¢), and Alberta (22.9¢). See our full Canada comparison for the complete breakdown.
See how New Brunswick's ~15.4¢/kWh stacks up against every other province and territory.
NB Power rate data sourced from approved rate schedules effective April 14, 2026 as regulated by the New Brunswick Energy and Utilities Board (EUB). Blended rates calculated at 1,000 kWh/month including customer charge, tiered energy charges, estimated VAR surcharge, and 15% HST. VAR surcharge values are approximate annual averages. Generation mix percentages are approximate annual averages. Solar irradiance data from NASA POWER database for Fredericton (45.96°N, 66.64°W). Savings estimates assume 3% annual rate increases and 0.5%/year panel degradation. All figures in Canadian dollars.