Net Metering
Supplying Right Power To Your Home
Starting to own a power system by installing a renewable solar energy panel system by Mixshop. Learning how to save your money on your hydro bill and carry over the unused electricity into the following month with the use of Ontario’s Net-Metering Program.
Table of Content
- Residential Net-Metering
- Knowing the Ontario Net-Metering Program
- Ontario’s Net-Metering Program: Is it Worth It?
- Net-Metering Eligibility in Ontario
- Step By Step Process for Applying for Net-Metering Program
- Frequently-Asked Questions
Residential Net-Metering
The Net-Metering Program is a program that enables homeowners to use solar energy as a means of their electricity and they are billed for their energy systems by their energy distributors. In other words, the Net-Metering System tracks the amount of solar electricity a system generates and how much the entire household consumed solar energy power. Tracking down the excess energy generated by the system is being directed and stored back into the utility grid. And by this time, your hydro supplier will remove the charges from your account for that period and will provide you the credits for your future energy bill consumption.
Knowing the Ontario Net-Metering Program
For the Ontario electric consumers, the Net Metering program is a new type of renewable energy program for generators with up to 500 kWh and below. This way, it enables Ontario residents to lessen their consumption of the hydropower bill by transferring any excess solar energy back to the utility grid and which will be credited or used towards the upcoming energy bills. With that, the Homeowners are only obliged to pay for the difference between the total energy production from the solar energy and the particular energy consumed within the billing period. If ever your energy output is more than the energy consumption in any month, it will bring back a kWh credit that is transferred for up to months until the energy expires.
Aside from that, once you are connected to the Net-Metering Program in the Ontario distribution system, the local energy distribution company will continue to monitor and read your electricity consumption meter still as is what they are used to doing when reading the electricity. This way, it will allow the distribution company to take track of and take out the amount of excess electricity that your house has consumed and is transferred back to the electric grid. Aside from, that you will know what you take in return from the utility grid every month. Then, the net difference between these two amounts will appear on your energy bill for that cutoff period.
It is important to remember that all the energy credits that you have got through the Net-Metering program in Ontario can be consumed within one year; it means, the excess electricity stored back to the grid can be only consumed within months. However, any excess unused credits after months will no longer be of use because the system will reset to zero following the end of the rolling period of 12 months.
Note: Bear in mind that the rules for Ontario Net-Metering Program make it a hassle and too costly for the systems with over 10 kW to connect to their utility grid. There should be a practical limitation of 10 kW of Solar PV for residential use to be considered. Solar Photovoltaics means the generation of electricity that uses energy from the heat of the Sun. Aside from that, there are many areas covered that are currently “grid constrained” within Ontario. This means that the 7 % limitation of the renewable sources set by Hydro-One and other electric companies has been spread widely for larger areas of electrical distribution networks. Thus, there will be no more new renewable energy systems will be permitted to connect to the utility grids in those areas.
Ontario’s Net-Metering Program: Is it Worth It?
When you choose to invest in the solar panel system installation today with MixShop, the Ontario Net-Metering Program will enable you to lock in the electricity rate for the next 25+ years. This will let you save tons of money on the average in electricity costs, making it very affordable for you to own your electricity than just rent it. Just allow us to prove that to you.
With the help of the Net-Metering Program, each kWh of your solar array will produce works toward a kWh you would have bought from the electrical company. Thus, it makes offsets the cost of that kWh. In Ontario, the average household consumes around 21.5 cents/kWh. This cost of the total utility bill rate includes the taxes as well. You can make your calculation. Just simply write down your recent electrical bill, and then divide the total cost and include the tax by the entire kWh that was sold to you. In this way, you will find out the cost per kWh. Moreover, as you get to know the predictability of the amount of energy these solar panel systems produce over a long time, it will be very easy to identify how long it will take you to generate enough amount of electricity to offset the cost of the system. Thus, it will determine the amount of money you saved when you invest in your solar energy electricity system. Additionally, there are many reasons for you to consider investing in the Solar Panel System with the help of Net-Metering today.
These are the reasons for you to invest in us:
- Ontario’s hydro rate is known to be the country’s third highest and it is noticeable to have an annual increase rate of at least 6-7%. So, when you choose to invest in solar panels and have them installed on the rooftops, this will help you lessen the cost of your hydro bill to reaching even down to zero and this will make great thousands of dollars of savings down the road.
- The On-Peak Demand means the highest rate that we are currently paying for the electricity. The Highest price is around 17 centers per kWh before the taxes and this is calculated as per the time of use rates in Ontario. The summer is when the highest peak takes place. This often occurs from 11:00 in the morning until 5:00 in the afternoon, when we plug in and use our air conditioning units. On the other hand, during the winter season, from 7:00 in the morning to 11:00 AM and from 5:00 afternoon to 7:00 in the evening, the highest peak takes place. This is the most often time when we switch on the lights. And the advantage of you having the solar energy system at home is that you can hedge your electric cost, and offset this very high cost by avoiding paying for those high peak rates.
- Compared to the records from the past five years, the cost for the installation of solar panels has dropped by over 50% which means it has reached an all-time low decrease. This is making the installation more affordable than ever and decreasing the reimbursement period right after the first installation. The solar break-even price has become lower than the residential rates in Ontario and this is taken from the solar economics study conducted by the Canadian Energy Board. Overall, this only means you will get major savings by owning your solar power.
- Finally, you will no longer be paying for the Regulatory and Delivery charges from your hydro company. This is what the solar net-metering terms and conditions state: The Delivery portion of your current bill will no longer include the charges on a kilowatt-hour basis if the total net consumption for the billing period is zero.
Net-Metering Eligibility in Ontario
The Net-Metering program in Ontario is open for all homeowners who wish to apply, so every resident is eligible. But this program solution may not be suitable for all or every home. There are several factors to consider such as your house’s access to the sun rays, the location of your house, the roof’s shading conditions, the orientation of your roof, and the age and composition of the shingle. But all of these factors can be discussed with our solar experts here at Mixshop. They are professionally trained to determine if availing of the solar net-metering is the right one for your home or not.
The following are the factors for you to become eligible for the Net-Metering Program in Ontario
- First, you need to plan for getting generating electricity primarily for your use.
- You must use a renewable energy source: This can be solar energy, wind energy, water energy, or bioenergy. Whatever that is, you must use for it to meet your own electrical needs.
- For your renewable energy system, you must have a maximum size of less than 500kWh.
- You must make sure that you are generating renewable energy that gets carried to the consumption point without relying on the distribution system of the hydro company.
- You must the electricity distributor’s safety, technical, and inspection requirements.
- You must have the required environmental and municipal approvals and building permits. You can check the Ministry of Energy to know the requirements at https://www.ontario.ca/page/ministry-energy
Step By Step Process for Applying for Net-Metering Program
As we have mentioned earlier, anyone is eligible to apply for the Net-Metering program at any time, with the help of a professional MixShop Technician. With the following step-by-step procedure plan, we ensure that all requirements for net metering are taken care of.
- Step 1: Contact one of the trained solar technicians at MixShop to speak with them about your interest in the Net-Metering program. At this point, our solar technicians will see the condition of your solar energy system and the eligibility requirements. The eligibility requirements are the shingle composition and the age, the orientation or placement of your roof to the relation of sun rays, and the shading of the rooftop.
- Step 2: After identifying your eligibility, MixShop will help you get in touch with your local distribution company, and will help you apply for the Net-Metering Agreement.
- Step 3: MixShop will assist you in connecting your renewable energy system to the electric grid.
- Step 4: MixShop will make sure that the Solar energy system has been approved by the electric distribution company.
We always recommend for you consult our trained experts here at MixShop to give you more details and answer your questions. Our staff is here for you to help you learn more about the application process and the requirements to apply for the Ontario Net-Metering program and to connect your renewable energy system to its grid. Our staff will further advise you on the appropriate size and costs of the solar panel system, help you in obtaining the documentation requirements, and municipal and city permits, and give you recommendations for any necessary upgrades to your existing hydrometer.
Frequently-Asked Questions
How Is The Electric Bill Computed After Net-metering Program Is Installed?
Once the Solar Energy system is connected to your distribution system through this program, your energy distribution company will keep on reading your meter as they normally do. This will enable them to control and lessen the excess amount of generated electricity and transfer to the grid from the amount of electricity you take in return every month. You will then receive a bill showing a net difference. The regulated charges apply only to your consumption. If ever there comes a time that the net is zero, you will receive a bill including your fixed monthly charges. If you have more credits, then it can be carried forward, to the next month for up to one year to offset the costs.
Is There An Expiration In Net-metering Credits?
Yes, there is an expiration. The net metering credits are good only for 12 months. After that, it will be reset to zero. You will lose the excess credits if you do not consume them. It means that the monthly allocation of credits will be carried forward for up to 12 months. That is the reason MixShop will help you design a suitable size solar energy system installed that meets your electricity needs.
Is There A Net-metering Limit?
Yes, there is a net metering limit. All the Net Metering systems in Ontario must have up to a 500kW limit. However, for the residential homes, the standard size would be 10kW and below. With that, the regulatory bodies keep your energy production to be either the same or less than the consumption. Then there get zero out the electric bill by having your electricity.