What is Net Metering?

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Net Metering in Ontario uses electricity produced by your solar system to directly power the electrical needs of your home or business.  When more energy is generated than you use, the surplus is transferred to the electrical grid and you accumulate credits that are applied when you produce less than you use. Credits are accumulated during periods of peak production and used during times of low solar production such as inclement weather, darkness or in the winter months. You have 11 months to use your credits to offset the cost of future electricity bills.

With Net Metering you only pay when you use more than you produce, the Net difference. Global Point can design a system that will cover all your electrical needs. We analyze your current usage and design a system that covers all your usage averaged out over the year eliminating most of your electricity bill.*

*Fixed utility charges will be billed.

How Does Net Metering Work?

How Solar Works

How Solar Works

  1. Solar energy is collected from photovoltaic solar panels. Panels can be installed on your roof or ground mounted.
  2. Inverter converts DC (Direct Current) electricity to AC (Alternating Current) that’s compatible with your utility’s grid.
  3. AC energy supplies your current household electrical needs.
  4. Surplus energy is fed to to the grid providing you with energy credits to be used when your usage is greater than solar production.

 

What’s Different From Fit or microFit?

Fit and mciroFit are being phased-out and replaced by the new Net Metering program. Here’s some of the main differences between the 2 types of programs

 

Feed-in Tariff (FIT)

Micro Feed-in Tariff (microFIT)

Net Metering

Intended for
Small, medium or large renewable energy generation projects over 10kW.
Usually a homeowner, farmer or small business owner, developing a very small under 10 kW  energy generation project on their property.
Any customer of a distributor who produces electricity from a renewable resource primarily for their own use.
Details
FIT contracts, pay a guaranteed price for all the electricity your project produces for 20 years.
microFIT contracts, pay a guaranteed price for all the electricity your project produces for 20 years.
Designed to generate the approximate amount of electricity you consume averaged over the year. During peak times, surplus electricity is provided to the local utility. Credits for any surplus  are applied toward future energy bills for periods when you consume more than you produce. You pay for the “Net” difference.

 

 

Electricity Rates Continue to Rise IMG00064

From May 2006 until May 2016 average electricity rates rose  85%, an average annual increase of 8.6%.

From May 2011 until May 2016 average electricity rates rose 56%, an average annual increase of  11.3%.

Rates are predicted continue rising into the future. The more rates rise, the more benefit Net Metering provides because the dollar amount offset by solar power grows in value.

Source: Ontario Energy Board – Historical Electricity Prices

Links to Net Metering Information

Hydro One Net Metering 

Hydro One Frequently Asked Questions

Ontario Energy Board Info and Comparison of Available Options 

 

To learn more about Net Metering, click here. One of our solar experts will be happy to tell you more.