Excerpt
Net metering in Ontario allows homeowners with solar energy systems to earn credits for excess energy generated and sent back to the grid, reducing their electricity bills. Solar panels generate energy, which is used to power the home, and any surplus is converted into credits for future use. This system helps lower reliance on the grid and offers financial benefits, especially during periods of lower solar generation.
Deep Dive
How does net metering work in Ontario?
You’d be surprised how many homeowners are eager to install solar systems without fully understanding net metering. In this blog post, I’ll explain how net metering works in Ontario, especially for those with solar energy systems installed in their homes.
The Basics of Net Metering
In a typical household, electricity is supplied from the grid through a hydro meter. The hydro meter connects to your main electrical panel, distributing power to various appliances and devices throughout your home. However, when you install a solar energy system under a net metering setup, the flow of electricity changes slightly.
Here’s How It Works:
1. Solar Panels and Inverters: Solar panels, typically mounted on your roof, generate direct current (DC) energy from sunlight. This energy is then converted into alternating current (AC) by an inverter, which is the type of energy your home uses.
2. Energy Flow: The AC energy generated by the inverter is fed into your electrical panel to meet your home’s energy demands. For example, if you’re charging an electric vehicle during the day, much of the energy produced by your solar panels will be used directly for this purpose.
3. Excess Energy and the Grid: If your solar panels produce more energy than your home needs, the excess energy is sent back to the utility grid through your meter. This surplus energy earns you credits that reduce your overall electricity bill, rather than being wasted.
Real-World Example
Let’s explore a real example from one of our customers who installed a solar system just a few months ago. They recently received their July bill, dated August 2nd.
– Before Solar Installation: Last year, the customer used approximately 1,200 kilowatt-hours (kWh) of electricity during the same period.
– After Solar Installation: This year, with the addition of an electric vehicle, their expected usage was around 2,300–2,400 kWh. However, due to the solar system’s contribution, they only consumed 1,534 kWh in July.
Understanding the Bill
Here’s a breakdown of how their bill was calculated:
– Total Charges: The bill showed $260 in charges, including electricity usage and delivery fees. Not all charges, such as regulatory fees, are eligible for credits.
– Generation Credits: During this billing period, the customer generated $340 in solar energy credits. However, only $236 of these credits could be applied toward the bill. The remaining $103 in credits will roll over to future months, which is especially useful during the winter when solar generation tends to be lower.
– Final Bill: After applying the $236 in credits, the customer’s total bill was reduced to just $24.
How Net Metering Benefits You
This example illustrates how net metering can provide significant financial benefits:
– Reduced Grid Consumption: A solar system reduces the amount of electricity you need to purchase from the grid, lowering your overall consumption and, in turn, your electricity bill.
– Generation Credits: Excess energy is converted into credits, which can offset future bills. This becomes especially advantageous in months where solar generation is lower, such as during the winter.
Summing Up!
Net metering in Ontario enables you to maximize the benefits of your solar energy system by reducing your reliance on the grid and lowering your electricity costs.
If you have further questions about net metering or want to explore how it could benefit your household, feel free to reach out to us at Brightworks Energy.
We’re here to help!