Excerpt
Ontario’s new Home Renovation Savings Program is making waves—but not for the reasons you might expect. While it offers up to $10,000 in rebates for solar panels and batteries, there’s a catch: net metering isn’t part of the deal. What does this mean for homeowners looking to cut energy costs? Let’s clear up the confusion.
Ontario’s renewable energy sector has been buzzing since the recent announcement of the Home Renovation Savings Program, managed by the Save on Energy initiative. While the program aims to promote greener homes and businesses, it has sparked confusion and some misinformation across the industry. Let’s break down what this means for homeowners, businesses, and renewable energy stakeholders.
What’s in the Program?
The Save on Energy program offers up to $5,000 in rebates for solar panels and an additional $5,000 for battery storage systems. But there’s a catch: these incentives are only available to grid-connected customers who use the system for load displacement purposes.
Load Displacement vs. Net Metering
Load displacement means that the solar or battery system powers your home’s energy needs at the time of consumption. If you produce more energy than you use and send it back to the grid, you won’t get any credit for it—essentially giving free power to your hydro company.
This is a major departure from Ontario’s net metering program, where homeowners could offset their hydro bills by feeding excess power back to the grid. Many customers assumed these new rebates would support net metering installations, but that isn’t the case.
This misunderstanding has led to widespread confusion in the industry.
Why the Shift?
The focus on load displacement reflects an effort to promote local generation and consumption. By encouraging homeowners to use the energy they produce on-site, the program aims to reduce the strain on Ontario’s electrical infrastructure.
This approach is designed to delay costly upgrades to hydro lines as electrification demands continue to rise.
What This Means for System Design
For homeowners and businesses, this shift changes how solar and battery systems are designed.
Instead of sizing systems to cover total annual energy consumption, the focus now shifts to matching production with real-time usage. This means smaller systems tailored to a property’s specific consumption patterns.
To get the most out of the rebates, customers need to analyze their interval data from their utility providers. This data tracks power consumption in 15-minute increments, helping identify when energy is being used throughout the day.
For example, if a homeowner is away at work during the day, solar power generated without a battery would mostly be wasted, as it’s not consumed on-site and doesn’t earn credits under this program.
Is the Rebate Worth It?
Whether the $5,000 rebate for solar panels creates real value depends on your energy usage habits. Homes with high daytime consumption or those that pair solar with battery storage will benefit the most.
However, for those accustomed to net metering benefits, this new structure may fall short of expectations.
What this Means for You
While the lack of net metering provisions in the new rebates is disappointing to many, there’s hope that future iterations of the program may address this gap.
For now, understanding the intent behind the Home Renovation Savings Program—to encourage localized energy use and reduce grid strain—can help homeowners and businesses make informed decisions about their renewable energy investments.
Stay tuned for more updates as Ontario’s renewable energy landscape continues to evolve.
Want to learn more? Contact a solar expert to see how solar can work for you!