Before signing a contract
- Confirm the distributor serving the address and whether its local system can host the proposed project.
- Have the AC rating, single-line diagram, protection equipment and operating mode reviewed.
- Obtain the connection offer or approval and satisfy Electrical Safety Authority requirements.
- Size against real consumption because excess credits are not paid out in cash.
Who qualifies for residential net metering in Ontario?
The customer must generate renewable electricity primarily for their own use and enter into a net-metering agreement with the distributor. A solar system may be owned or operated by the customer, and qualifying third-party arrangements are also possible when the required disclosures and agreements are in place.
Is 12 kW the maximum residential system size?
No. As of May 1, 2026, 12 kW is the upper limit of the micro-embedded generation category in the Distribution System Code. A larger system may be possible, but it follows the process for facilities above 12 kW, normally including preliminary consultation and a Connection Impact Assessment.
How are bill credits calculated?
The distributor assigns a monetary value to eligible electricity exported to the grid and applies it against consumption-based electricity charges. Credits do not necessarily offset fixed charges, taxes or other charges that are not based on kilowatt-hour consumption.
How long can credits be carried forward?
Credits can be carried forward for a maximum continuous 12-month period. When credits have been carried in every billing period during the preceding 12 months, the remaining balance is reduced to zero under the regulation.
Can a battery be used with net metering?
Yes. The regulation accommodates storage and exported electricity may include energy that was stored. The distributor must still approve the connection arrangement, inverter behaviour and protection scheme before operation.
What is the typical process in Ottawa?
For a facility rated 12 kW AC or less, Hydro Ottawa calls for a service request identifying net metering and issues a service layout when hosting capacity is available. Preparatory work, ESA connection authorization and the service-layout requirements must be complete before the system can be energized.
Should I buy equipment before the distributor approves the project?
No. The OEB advises customers to confirm eligibility and connection feasibility with the distributor before investing. Service upgrades, bidirectional metering, protection requirements or upstream work can materially change cost and schedule.
Official sources and review date
Rules, forms and tariff conditions can change. These primary sources were checked for this guide:
- Ontario Energy Board — how net metering works ↗
- Ontario Regulation 541/05 — Net Metering ↗
- Ontario Energy Board — Distribution System Code and DER procedures ↗
- Hydro Ottawa — distributed energy resource connection process ↗
Last reviewed: July 12, 2026.
