Net metering is a billing arrangement, not a rebate. Every Ontario utility must offer it: surplus solar you export earns a credit against your electricity charges, and unused credits roll forward up to 12 months. It cannot be combined with the Home Renovation Savings solar rebate — you choose one path.
Net metering is set out in Ontario Regulation 541/05 under the Ontario Energy Board Act, so the rules are the same whether you are with Hydro One, Toronto Hydro, Alectra or another distributor[2].
Your panels power the house first. When they make more than you use, the surplus flows to the grid through a bi-directional meter and becomes a credit. At night and in winter you draw from the grid and the credits are applied. Credits can be carried forward for up to 12 consecutive months, after which unused credits expire[1] — so size the system to your annual use. Credits offset the electricity portion of the bill; fixed delivery and regulatory charges remain.
| Net metering | Home Renovation Savings rebate | |
|---|---|---|
| Upfront money | None | Up to $5,000 solar + $5,000 paired battery |
| Exports | Credited on your bill | Not allowed (load displacement only) |
| Battery | Optional | Optional; battery rebate only with new solar |
| Can you combine them? | No — choose one before the system is designed | |
The rebate does not require a battery: solar alone earns $1,000/kW up to $5,000, and a battery paired with new solar can add up to $5,000[3]. What it does require is giving up net metering. Toronto's Atmospheric Fund found a 10 kW net-metered system has roughly half the payback of a comparable system without net metering, even after the rebate — though the rebate can suit homes with limited roof space that want a battery[4]. Model both against your real 12 months of usage.
Your installer submits a connection application to your local utility; you sign a net metering agreement; a licensed electrical contractor installs and passes the ESA inspection; the utility installs the bi-directional meter and gives permission to operate. Small home systems use the simpler micro-embedded connection process — your utility will confirm its current size threshold and any fees.
Business or farm? See Ontario commercial net metering. Rebate details: Home Renovation Savings and load displacement.
Confirm timelines, thresholds and fees with your local distribution company. General information, not financial advice.
