Electricity consumers in Ontario who produce some of their own power from a renewable resource may take advantage of the “net metering” initiative. Net metering allows you to send excess electricity you generate from renewable resources to the distribution system for a credit toward your energy costs. In essence, it’s a “trade” of electricity you supply against electricity you consume.
How does it work? Once you’re connected to the distribution system, your local distribution company will continue to read your meter just as they do now (though they may need to change the meter in order to be able to record the information they need) and then subtract the value of electricity you supply to the grid from the value of what you take from the grid. What you’ll see on your bill is the “net” difference between these two amounts. If you supply more power than what you take from the grid over the billing cycle, you’ll receive a credit toward future energy bills. The credit can be carried forward for up to 12 months.
Eligibility criteria include, but are not limited to:
- you must generate electricity primarily for your own use; and
- the electricity must be generated solely from a renewable resource (wind, water, solar energy or biomass).