Net Metering allows customers to generate power, on-site, for their own use replacing electricity that would otherwise have to be purchased from the grid.

In good weather months, excess energy generation in kWh is sent back to the grid spinning the meter backwards. The customer receives a kWh credit at the same price the grid sells it to them. This credit can be carried forward for up to 12 months. For example, a credit made in July is carried forward to the winter where solar production is lower to offset the bill.

Net Metering electricity and credits are applied to kWh consumption. Therefore, electricity, delivery and global adjustments costs will be eliminated. However, net metering credits cannot be used to offset fixed regulatory charges or on demand (per kWh) line items.

Net Metering Opportunity for Ontarians

The limitation of available net metering capacity on the hydro grid is “one percent of the distributors annual maximum peak load”. Ontario’s peak demand load in 2015 was 22,516 MegaWatts. Therefore, the estimated maximum amount of net metered solar allowed in Ontario is one percent of 22,516 MegaWatts or 225 MW. It should be noted that the average farm or commercial solar project is approx. 0.1 MW or 100 kW DC. The average residential project 0.01 MW or 10 kW DC.

Tax Incentives for Farms and Businesses

The government of Canada provides an accelerated CCA rate for class 43.1 and 43.2 properties with an incentive to encourage businesses to invest in specified clean energy generation and energy efficiency equipment.

Solar photovoltaic energy systems acquired after February 22, 2005 and before January 1, 2020 qualify as class 43.2 property and are eligible for an accelerated CCA rate of 50 per year on a declining balance basis.