Many people in Ontario are weighing the pros and cons of adding solar panels to their buildings.  A question that often comes up when solar projects are discussed is, what happens to the energy that you generate but do not use? This is where net metering enters the conversation.  Net metering can seem complex at first, so ORTECH has developed the following explanation to help clarify.

What is Solar Net Metering?

Net metering allows an electricity user to install a solar photovoltaic (“PV” - generally in the form of solar panels) facility onsite to generate electricity for themselves with any excess going to the grid for a credit on future electricity bills. Net metering has been an option in Ontario since 2015 and is governed by Ontario Regulation (O. Reg. 541/05: Net Metering).

Key Considerations

With the price of electricity going up, and the cost of installing a solar PV facility trending downwards, net metering with solar PV has become a project worth considering.

Some key business drivers that you should contemplate when evaluating whether net metering with solar PV makes sense are:

• What is the risk of further electricity price increases;

• What is the time sensitivity for incentives; cost savings; and

• What will be the impact on your company’s reputation? Will you see a benefit from generating “green” electricity?

Why Solar Net Metering?

There are two main reasons why solar net metering makes sense now: 

First, the Ontario government has mandated that electrical providers, often called Local Distribution Companies (“LDCs”), allow their customers to offset their electricity use by generating renewable energy. This is where net metering fits into the provincial electricity distribution picture. 

Second, solar prices have come down and electricity costs have gone up. Net metering makes sure that every kW of electricity generated is either consumed by your facility or “sold” (given a credit) outside of your facility. The point where net metering makes sense for your facility may already have arrived.  Even without a government incentive there is a business case to be made for solar net metering. 

How can ORTECH help?

In order to help you determine if net metering is right for you, ORTECH will utilize our organization’s breadth of experience. We combine different areas of expertise, from project development to operation and maintenance. We provide effective solutions for the evaluation, design, installation, operation, and maintenance of turnkey solar PV facilities. Our approach includes the expertise of ORTECH’s parent company, Kontrol Energy Corp., which has extensive solar project development experience, and ORTECH’s sister company Efficiency Engineering, which has solar PV facility design and construction expertise. ORTECH has worked on over 1150 solar PV facilities in Ontario, including feasibility studies and financial analysis, technical reviews, audits, and construction management.

Let us help you bring solar net metering to your facility.

 By: Nick Collard