Net-Metering Explained

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What is Net-Metering:

In Ontario, many residential and commercial customers chose to install solar panels. The Solar generated electricity is used to power their home or business first. If more electricity is required than generated by the Solar system, the utility power provides the extra requirement. If there is more solar power generated than needed, the power is exported back to the utility for a credit toward your future electricity bills which can be carried forward for up 12 months.

Net Metering defines the process where a utility wheels your solar power to and from your system, essentially storing it for you. The Ontario Net Metering programs enhance the value of solar to customers, and set the rules as to how solar may be interconnected with your utility.

Is Net-Metering the Right Solution for You?

Generally talking, Yes! However, whether it is the right solution for you depends on many different factors!

Contact us today and we will schedule a free assessment meeting with you and provide you with our honest opinion as to whether you should invest in a net-metering system.

Here is the sample calculation per kW installed:

With a 30-year life, and assuming Ontario production numbers, the cost per kWh delivered would be:

Total Production over system life = 30 years x 1200 kWh/kW of solar installed = 36,000 kWh/kW

Cost per kWh = $3500 per kW (installed cost)/ 36,000kWh = $0.097/kWh

If you are paying more than 9-12 cents per kWh (including rate riders, taxes, debt retirement charges, delivery charges, etc.) then Net-Metering might be the right option for you

If you factor in the inevitable increases in electrical costs that all Canadians are faced with, solar systems on a roof become an attractive investment. Solar customers can expect to see a rate of return from 5 to 12% depending on their current/future electricity rates and location.


  • Each kilowatt of solar installed (on an unshaded low slope roof facing SE to SW) will produce between 1200 KWh in Ontario.
  • On Average solar systems in the 5-10kW size cost $2.5 to $3.5 per Watt.
  • Assuming your solar panels last 30 years or more
  • Assume your project is paid for in cash

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