Skip to content

Net Metering

Thinking about solar panels or another renewable energy system?

If you are considering installing solar panels or another renewable generation system at your home or business, you may have heard about net metering.

Net metering allows eligible Ottawa River Power Corporation (ORPC) customers to generate renewable electricity for their own use and receive bill credits for eligible excess electricity sent back to ORPC’s distribution system.

Before purchasing, leasing, financing, or installing equipment, please contact ORPC. ORPC must review your proposed project before it can be connected to the distribution system.

What is net metering?

 Net metering is a billing arrangement for eligible customers who generate renewable electricity, such as electricity from solar panels, primarily for their own use.

Here is a simple example:

Your solar panels generate electricity during the day.
Your home or business uses that electricity first.
If your system generates more electricity than you are using at that time, the extra electricity may flow back to ORPC’s distribution system.
That eligible excess electricity may create a credit on your electricity bill.
The Ontario Energy Board (OEB) describes net metering as a program that allows customers to generate renewable electricity for their own use while sending excess power to the grid for a credit to offset future electricity consumption. The program is governed by Ontario Regulation 541/05.

How could net metering benefit me?

Net metering may help reduce the electricity portion of your bill by applying credits for eligible excess renewable electricity exported to the grid.

However, savings are not guaranteed. The actual impact on your bill depends on several factors, including:

  • the size of your renewable generation system;
  • how much electricity you use;
  • when you use electricity;
  • when your system generates electricity;
  • applicable electricity rates;
  • your rate class and billing structure;
  • fixed charges and other charges that still apply to your bill.

Net metering is intended to help offset electricity consumption. It is not a cash-payment program and is not the same as selling electricity to ORPC.

How do net metering bill credits work?

Under net metering, ORPC measures both:

  1. the electricity supplied to the customer from ORPC’s distribution system; and
  2. the eligible excess electricity sent from the customer’s renewable generation system back to ORPC’s distribution system.

Eligible credits are applied to the customer’s electricity bill. These credits are not cash payments.

The OEB explains that net metering credits are used to offset future electricity consumption. The OEB also notes that credits may be carried forward for up to 12 months, after which unused credits are reduced to $0.

Net metering is not the same as the former microFIT program, which was previously administered by the Independent Electricity System Operator and is no longer available for new applications.

Who may be eligible for net metering?

A customer may be eligible for net metering if the proposed renewable generation system meets applicable regulatory, technical, safety, inspection, and connection requirements.

In general, the following conditions must be met:

  • The electricity must be generated primarily for the customer’s own use.
  • The electricity must be generated from an eligible renewable energy source, such as solar, wind, water, agricultural biomass, or a combination of eligible renewable sources.
  • Any electricity sent to ORPC’s distribution system must be excess electricity that the customer did not use.
  • The customer must enter into a net metering agreement with ORPC.
  • The customer must apply to connect the renewable generation system to ORPC’s distribution system.
  • The customer and generation facility must satisfy ORPC’s Conditions of Service, applicable safety and inspection requirements, and applicable OEB requirements.

Ontario Regulation 541/05 sets out Ontario’s net metering rules, including requirements for eligible customers, eligible generators, and net metering agreements.

How does net metering relate to DERs?

A Distributed Energy Resource, or DER, is an electricity resource that connects to a local distribution system. A renewable generation system used for net metering, such as rooftop solar panels, is considered a DER because it connects to ORPC’s distribution system and may send electricity back to the grid.

This means a net metering project has two related parts:

  1. Net metering eligibility and billing
    This determines whether the customer qualifies for net metering and how bill credits are applied.
  2. DER connection requirements
    This determines whether the renewable generation system can be safely and reliably connected to ORPC’s distribution system.

In simple terms:

Net metering explains how the bill credit works.
DER requirements explain how the equipment connects safely to the grid.

This is why customers interested in net metering are directed to ORPC’s Distributed Energy Resources page for application forms, technical requirements, connection agreements, and other connection information.

The OEB’s DER Connection Procedures are intended to standardize the procedures, timing, workflows, and forms used for connecting DERs to distribution systems. The OEB’s amendments related to DER connections and connection procedures came into force on October 1, 2022.

Where do I start?

If you are interested in net metering, please contact ORPC before purchasing, leasing, financing, or installing equipment.

ORPC will help confirm:

  • whether your project may qualify for net metering;
  • which application forms are required;
  • whether your proposed system can be connected to ORPC’s distribution system;
  • whether additional technical review is required;
  • which agreements, inspections, and approvals are needed; and
  • when the system may be connected and operated.

The required forms and detailed connection information are available on the ORPC Distributed Energy Resources page

Before you purchase, lease, finance, or install equipment

Customers should not incur project costs or sign binding agreements until ORPC has reviewed the proposed project and confirmed the next steps.

This is important because not every proposed system can automatically be connected. ORPC must review the proposed project to confirm applicable requirements, which may include:

  • net metering eligibility;
  • the type and size of the generation system;
  • available distribution system capacity;
  • technical connection requirements;
  • metering requirements;
  • safety requirements;
  • inspection requirements;
  • connection agreements;
  • ORPC’s Conditions of Service;
  • applicable OEB requirements; and
  • whether any upstream system limitations apply.

Customers should not operate a renewable generation system in parallel with ORPC’s distribution system until ORPC has provided approval to do so.

What will ORPC do as part of the review?

Once ORPC receives the required application information, ORPC will review the proposed project and guide the customer through the applicable process.

ORPC’s review may include:

  1. Confirming the correct application pathway
    ORPC will determine whether the project is a net metering project and what DER connection process applies.
  2. Reviewing the proposed generation system
    ORPC will review the type, size, location, and technical information for the proposed system.
  3. Assessing connection requirements
    ORPC will determine whether the proposed system can be connected safely and reliably to the distribution system.
  4. Identifying required forms and agreements
    This may include a net metering agreement, connection agreement, application forms, technical documentation, or other required information.
  5. Confirming inspection and approval requirements
    The customer may need to complete required inspections, including Electrical Safety Authority requirements, before the system can be connected.
  6. Confirming when the system may be connected and operated
    The customer must not connect or operate the system in parallel with ORPC’s distribution system until the required approvals are complete.

What does the customer need to do?

Customers are responsible for:

  • contacting ORPC before purchasing, leasing, financing, or installing equipment;
  • reviewing ORPC’s DER page and required forms;
  • submitting complete and accurate application information;
  • ensuring the proposed system meets applicable technical and safety requirements;
  • working with qualified contractors or professionals as needed;
  • completing required inspections and approvals;
  • entering into required agreements with ORPC;
  • understanding any private third-party agreement; and
  • waiting for ORPC approval before connecting or operating the system.

Third-party systems, leases, financing, and power purchase agreements

Some customers may choose to work with a third party for the ownership, installation, financing, leasing, or operation of a renewable generation system.

Customers should carefully review any third-party agreement before signing. This may include:

  • a lease;
  • a financing agreement;
  • an equipment agreement;
  • a maintenance agreement; or
  • a power purchase agreement.

Where a third-party net metering arrangement applies, customers may be required to provide ORPC with applicable OEB-approved confirmation or disclosure documentation. The OEB states that July 1, 2022, regulatory changes enabled third-party ownership of net metered generation facilities and retailing to consumers under those arrangements. The OEB also maintains forms and templates for third-party net metering and energy contracts.

ORPC does not regulate, approve, enforce, or provide legal advice about private agreements between customers and third parties. Customers are responsible for understanding their own agreements and should obtain independent legal advice if needed.

Important customer reminders

Before moving forward with a net metering project, please remember:

  • Net metering is about bill credits.
  • A net metering system is also a DER because it connects to ORPC’s distribution system.
  • DER requirements are about connecting the generation system safely and reliably to the grid.
  • Contact ORPC before purchasing, leasing, financing, or installing equipment.
  • Do not assume a system can be connected until ORPC has reviewed the proposal.
  • Net metering credits are bill credits, not cash payments.
  • Unused credits may be carried forward for up to 12 months.
  • Technical review, inspection, and connection requirements may apply.
  • Third-party agreements are private agreements between the customer and the third party.
  • ORPC’s Distributed Energy Resources page contains the required application forms, technical information, and connection requirements.
  • Do not connect or operate the system in parallel with ORPC’s distribution system until approval is provided.