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What is Net Metering?

Net Metering is a program whereby eligible customers with specific Distributed Energy Resource (DER) facilities can reduce their net energy costs by exporting surplus DER back onto the utility distribution system for credit against the energy the customer consumes from the distribution system.


How will my hydro bill be settled?

Customers participating in the Net Metering program will have the net energy charge on their hydro bill adjusted according to the Net Metering Regulation. Essentially, the customer will receive a credit or an adjustment on their monthly (or bi-monthly) hydro bill for the energy exported onto the utility's grid up to, but not exceeding the value of the energy consumed from the utility's grid.

If Net Metering customers export more power than they import during a billing period, their excess credit is carried over into their next billing period. Excess energy credits from successive billing periods can be carried-over up to a maximum of 12 months. Based on the billing cycle, For HST purposes, the supply of energy to the customer and the exporting of energy on to the utility's grid are considered to be separate supplies. As a result, the customer will be charged HST based on the gross supply of electricity rather than the net supply.


Who is eligible to participate in the Net Metering program?

Participation in the Net Metering Program is available to all Toronto Hydro customers with a generator that meet all of the following conditions:

  • The electricity is generated primarily for the customer's own use
  • The electricity is solely generated from a renewable energy source (such as wind, drop in water elevation, solar radiation, agricultural bio-mass, or any combination thereof)
  • The electricity generated is conveyed to the customer's own consumption point without reliance on the Toronto Hydro distribution system
  • The generator conveys any electricity that is in excess of what is consumed by the generator into the distributor’s distribution system
  • The generator is not a party to any contract or agreement, other than a net metering agreement to which this Regulation applies, that provides for the sale, in whole or in part, of the electricity that the generator conveys into the distributor’s distribution system
  • Electricity is conveyed directly from the point of generation to another point for the generator’s own consumption regardless of whether it's stored by the generator in a storage device for any period of time
  • Electricity conveyed into the distributor’s distribution system may include electricity that was stored by the generator in a storage device for any period of time, even if some or all of the stored electricity was not generated by the generator. O. Reg. 24/17, s. 5 (2)


What are the requirements for participating in Net Metering?

In order to participate in the Net Metering program, the customer will be required to meet all the parallel generation requirements for Connecting DER Facilities, as applicable to the generator size found in Process and Technical Requirements for Connecting Embedded Generation Facilities in Appendix F of the Distribution System Code

 Program Capacity (kW) Distribution System Connection Voltage (kV)
 Micro Net Metering  0 < Generator ≤ 10  N/A
 Small Net Metering

10 < Generator ≤ 250

250 < Generator ≤ 500

Voltage < 15kV 

Voltage ≥ 15kV

 Mid-size Net Metering

500 < Generator ≤ 1MW 

1MW <Generator ≤ 10MW

Voltage < 15kV

Voltage > 15kV 

 Large Net Metering Generator > 10MW  Voltage > 15kV 



Relevant Documents


Learn more about the Net Metering Connection Process.


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