Net Metering vs. Load Displacement: Which Solar Option is Best for Ontario Homeowners?

As Ontario homeowners consider adopting solar energy technologies to reduce their hydro bills, two primary options emerge: net metering and load displacement. However, recent changes in Ontario's solar rebate programs have shifted the landscape, making it crucial for homeowners to understand both of these options and their implications.

Here at Hey Solar, we've put together a handy guide below to help you learn the differences between these two programs.

Net Metering Program

Net metering allows homeowners to generate electricity from solar panels and feed any excess into the grid. In return, they receive credits that can be used when their solar system isn't producing enough energy. This system is particularly beneficial for homes with lower hydro consumption patterns, as it maximizes savings by allowing homeowners to offset their energy consumption over time.

Eligibility and Application Process

Ontario's net metering program is straightforward, but recent changes have excluded it from new rebate programs. Homeowners must now consider alternative options (load-displacement for example), or apply for net metering outside of these rebates.

Financial Advantages

Net metering offers significant financial benefits by allowing homeowners to bank credits for excess energy produced. This can lead to faster payback periods compared to load-displacement systems. While many homeowners can maximise their roof space, hydro credits do expire within 12 months, and therefore it is beneficial to not oversize or generate too many credits that they do not get used up before they expire.

Load Displacement

Load displacement involves using solar energy to offset immediate electricity needs. Any excess energy must be stored in batteries or used immediately, as it cannot be fed back into the grid for credits.

Benefits and Limitations

Load displacement is now incentivized by Ontario's rebate programs, offering up to $10,000 in rebates for solar and battery installations. However, without net metering, homeowners must rely on batteries to store excess energy, which increases upfront costs.

Comparison to Net Metering

Load displacement systems are generally smaller and require careful sizing to avoid wasting excess energy. They are more suitable for homes with consistent energy demands or those willing to invest in battery storage.

Comparison of Net Metering and Load Displacement

Feature	Net Metering	Load Displacement
Excess Energy Handling	Excess energy is fed into the grid for credits.	Excess energy must be stored in batteries or used immediately.
Financial Benefits	Offers credits for excess energy, leading to faster payback.	Requires investment in batteries for optimal use.
System Sizing	Systems are sized to offset annual energy consumption.	Systems are sized to match immediate energy needs.
Rebate Eligibility	Not eligible under Ontario's new rebate program.	Eligible for up to $10,000 in rebates.
Financing Availability	Green Homes Loan, and municipality-dependent incentives (ie. Toronto HELP).	Also can take advantage of GHL, and other incentives like Toronto's HELP financing.
Suitability	Ideal for lower hydro consumption or those with variable energy use.	Suitable for homes with consistent (or higher) energy demands or those investing in batteries.

Understanding the differences between net metering and load displacement is crucial for homeowners considering solar installations. While net metering offers long-term savings, load displacement is now incentivized by rebates but requires additional investments in battery storage.

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To determine whether solar energy is right for you, consider completing our quick questionnaire. This will help you (and us) assess whether net metering or load displacement is more beneficial for your home.

Contacting us is a great first step towards exploring your solar options and maximizing your energy independence.

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