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HRS Rebate vs Net Metering Ontario 2026:
Which Path Wins for Your Home?
Ontario solar buyers have two financial paths and generally have to choose one. Here is the side-by-side that gets you to the answer.
⚡ Quick Answer
Ontario solar buyers in 2026 must pick one path. Path A is traditional net metering, where excess solar exports to the grid for a 1:1 retail credit at whatever your applicable rate is at the time of export — but you receive no HRS rebate. Path B is the Home Renovation Savings (HRS) rebate path, paying up to $10,000 ($5,000 solar at $1,000/kW + $5,000 battery at $300/kWh) — but the system must be sized for load displacement only, with zero export to the grid.
Per the official program rules: “Participants who receive an incentive through the Home Renovation Savings program for solar PV and battery storage projects are not eligible to participate in a net-metering agreement with their LDC.” (Source)
Bottom line: net metering wins for high-export, no-battery homes. The HRS path wins for evening-heavy households on the Ultra-Low Overnight (ULO) rate plan with a paired battery. Solar X models both scenarios on your real 12-month hydro data before quoting.
Key Takeaways
- One path, not both. Per the official program rules, taking the HRS solar incentive disqualifies you from a net metering agreement with your LDC.
- Net metering pays a 1:1 retail credit at your applicable rate at time of export. Credits roll over and expire after 12 consecutive months under O. Reg. 541/05.
- HRS rebate amounts: $1,000 per kW installed solar (cap $5,000) + $300 per kWh installed battery (cap $5,000) = $10,000 maximum combined.
- HRS battery rebate is not standalone. Batteries must be installed with new rooftop solar under the same HRS application; existing systems do not qualify.
- ULO rate plan: 3.9¢/kWh overnight (11 PM–7 AM), 39.1¢/kWh on-peak weekdays (4–9 PM). That 35.2¢ spread is what makes battery arbitrage viable.
- HRS pre-approval is mandatory before any equipment is purchased or installed. Retroactive applications are rejected.
- Solar X is a registered Save on Energy contractor and ESA-Licensed Electrical Contractor. We model both paths against your real 12-month hydro data before issuing a quote.
Why This Is the Most Consequential Decision You Will Make
Most Ontario homeowners researching solar focus on the upfront cost. That is the wrong place to start. The number that actually determines your 25-year savings is whether you take the rebate path or the net-metering path, and your installer often picks for you without explaining the tradeoff.
Both paths can be the right call. Both pay back. The math is just different, and the gap between picking right and picking wrong runs into the tens of thousands over the life of the system. We have modelled hundreds of Ontario homes and the answer is rarely obvious from the address alone. It comes out of your actual hydro bill, the orientation of your roof, and how much power you use at 7 pm on a Tuesday in February.
This guide walks through both paths, the math each one rests on, and the five questions that determine which one suits your home. By the end you should know which to ask for, what to ignore in any contractor quote, and why.
Path A: Net Metering
Net metering is Ontario's standard grid-tied path, governed by O. Reg. 541/05 under the Ontario Energy Board Act, 1998. Your system stays grid-connected: when your panels produce more than your home is using, the surplus flows to the grid; when production drops (night, winter, cloudy days), you draw from the grid normally.
How net metering credits work
- Excess generation is credited at your full residential retail rate (energy charge only — not delivery, regulatory, or HST).
- Credits accumulate as a running balance and roll forward bill-to-bill.
- Credits expire after 12 consecutive months of being carried forward. Per Section 8(8) of O. Reg. 541/05, any remaining credit balance is reduced to $0 after that period.
- The credit value depends on your rate plan. Effective Nov 1, 2025–Apr 2026 (OEB):
- TOU: 9.8¢ off-peak / 15.7¢ mid-peak / 20.3¢ on-peak
- Tiered: 10.3¢ (Tier 1) / 12.5¢ (Tier 2)
- ULO: 3.9¢ overnight / 7.6¢ weekend / 9.2¢ mid-peak / 39.1¢ on-peak
- Available at every Ontario LDC: Toronto Hydro, London Hydro, Hydro One, Alectra, Hydro Ottawa, Burlington Hydro, Oakville Hydro, Milton Hydro, Utilities Kingston, Oshawa PUC, and others.
Heads-up: “Blended” net metering credit values you'll see in older marketing materials (often quoted as “12–16¢/kWh”) are no longer accurate after the 30% rate hike of November 1, 2025. The credit value is whatever your rate plan charges at the time of export. On TOU and ULO, that varies by hour.
When net metering wins
Net metering is the strongest path when:
- You have a south-facing roof with strong daytime production capacity.
- Most of the household is out during the day so a lot of solar exports rather than self-consumes.
- You are not installing a battery and do not plan to.
- You stay on the standard Time-of-Use (TOU) or Tiered rate plan rather than Ultra-Low Overnight (ULO).
The trade you accept
The headline trade is that you forego the HRS solar rebate (up to $5,000). For homes that genuinely export more than half their generation, the lifetime credit value of net metering exceeds the one-time $5,000 rebate by a wide margin. For homes that mostly self-consume, the math gets closer and the rebate path can win.
Path B: The HRS Rebate (Load Displacement)
The Home Renovation Savings (HRS) program is delivered by Save on Energy (IESO) and Enbridge Gas, with support from the Government of Ontario. It launched January 28, 2025 as the successor to HER+ and is currently confirmed through November 2026. Note: program terms allow termination at any time, so timing matters.
| Measure | HRS Rebate | Cap |
|---|---|---|
| Solar PV panels | $1,000 per kW installed (covers up to 50% of cost) | $5,000 (5 kW) |
| Battery storage (must pair with new rooftop solar) | $300 per kWh installed (covers up to 50% of cost) | $5,000 |
| Combined solar + battery cap | — | $10,000 |
| Air-source heat pump (separate stack) | Fixed-dollar rebate | Up to $7,500 |
| Ground-source heat pump (separate stack) | Fixed-dollar rebate | Up to $12,000 |
| Attic insulation (single-measure) | — | $1,250 |
| Smart thermostat (single-measure) | — | $100 |
Source: homerenovationsavings.ca (verified May 2026).
How the HRS path is structured (the rules that bite)
- Load displacement only. The system must be sized so all generated electricity is consumed on-site (used immediately or stored in the battery). Net metering is explicitly not permitted under this rebate.
- Pre-approval is mandatory. Your registered contractor submits the pre-installation application before any equipment is purchased or installed. Retroactive applications are rejected — this is the #1 reason rebates get denied.
- Registered contractor only. Installation must be completed by a Save on Energy-registered HRS contractor. Solar X is registered and submits the full application on your behalf.
- New rooftop solar required. Existing solar systems do not qualify, and standalone batteries do not qualify.
- Eligible homes: detached, semi-detached, row, town, or mobile homes. You must own and occupy. Cornwall Electric customers are excluded (they're on the Hydro-Québec grid).
- Funding is limited. Applications are processed first-come, first-served and program terms allow termination at any point.
Why the ULO rate plan changes the math
The HRS rebate path becomes significantly more compelling when paired with the Ultra-Low Overnight (ULO) rate plan from your LDC. ULO charges 39.1 cents per kWh between 4 pm and 9 pm on weekdays, and just 3.9 cents per kWh between 11 pm and 7 am every day. That is a 10-to-1 spread the rest of the rate plans do not offer.
A battery on a load-displacement system can charge from solar during the day, charge from cheap overnight grid electricity, and discharge during the 4 to 9 pm window when grid power is most expensive. That arbitrage value, captured every weekday for 25 years, is what tilts the HRS path ahead for evening-heavy households.
When HRS wins
- You are installing a battery alongside the solar.
- You are on or willing to switch to the Ultra-Low Overnight rate plan with your LDC.
- Your household uses heavy power between 4 pm and 9 pm (cooking, laundry, EV charging, electric heat).
- You want backup power capability for outages.
Side-by-Side: Path A vs Path B
Same 8 kW system, same hypothetical 1,500 sq ft Toronto home, modelled across both paths over 25 years. Numbers vary with roof, consumption, and rate plan; Solar X runs the actual model on your real hydro history before quoting.
| Factor | Path A: Net Metering | Path B: HRS Rebate |
|---|---|---|
| Upfront rebate | None on solar; battery still eligible for HRS $5K | Up to $5K solar + $5K battery + heat pump rebates |
| Recurring savings | 1:1 retail credit on exports (~12-16¢/kWh) | Self-consumption + ULO arbitrage (3.9¢ vs 39.1¢ spread) |
| System sizing | Often oversized for high export | Right-sized to home consumption + battery |
| Battery role | Optional, focused on backup/reliability | Core to the financial model (peak shaving) |
| Rate plan | Standard TOU or Tiered | Ultra-Low Overnight (ULO) typically |
| Best for household type | Empty during day, modest evening usage | Heavy 4pm-9pm usage, EV charging, electric heat |
| Stacking with HRS battery rebate | Yes (battery alone is eligible) | Yes (full $10K cap available) |
| Stacking with HRS solar rebate | Generally no (1:1 net metering not designed for it) | Yes (the structure of this path) |
| Backup power during outages | Only if battery is added | Built into the design |
| Typical payback | 7-9 years (high export households) | 6-8 years (HRS + battery + ULO households) |
Strip out the framing: net metering wins on roofs that export a lot. The HRS path wins when a battery plus the ULO rate plan stacks correctly with your evening usage pattern. Neither is universally better. The number that decides it is your actual 12-month hydro consumption profile.
The 5-Question Decision Flow
Answer these in order. Each one tilts the answer in one direction.
Q1. Are you installing a battery?
If no, default to net metering. Path A is built around no-battery export economics. If yes, both paths are live and you keep going down the list.
Q2. What does your roof look like?
If you have a strong south or southwest exposure with little shading and a household that is empty during peak production hours, you will export a lot of generation. That tilts toward net metering. If your roof is east-west, partially shaded, or your household is around during the day, generation flows mostly into self-consumption and the HRS path becomes more competitive.
Q3. Are you on or willing to switch to ULO?
If yes, the HRS plus battery path captures peak-shaving arbitrage every weekday at the 39.1 cent peak rate. If you are stuck on TOU or Tiered for any reason (rental property, utility constraint, lifestyle preference), the arbitrage signal weakens and net metering becomes more attractive again.
Q4. When does your household actually use power?
Pull your last 12 months of hourly hydro data from your LDC's portal (Toronto Hydro Connect, London Hydro EnergyShareSM, Alectra MyConnect, Hydro One, etc.). If most consumption is between 4 pm and 9 pm on weekdays, the HRS path with battery captures that as arbitrage. If most consumption is mid-morning or weekends, net metering credit accumulation is more efficient.
Q5. How long will you be in the home?
Both paths reward long ownership, but the HRS rebate's value lands upfront ($5K to $10K in year 1) while net metering's value compounds over the full 25-year life. If you might sell within 5 to 7 years, the HRS rebate is more recoverable as system value to a buyer. If you plan to stay 15-plus years, net metering's lifetime credit total typically exceeds the upfront rebate for high-export homes.
The Three Mistakes We See Most Often
Picking the rebate just because it sounds bigger
A $5,000 cheque feels concrete in a way that a 25-year credit stream does not. But if your roof exports 60% of generation, the lifetime credit value of net metering substantially exceeds $5,000. The decision is always present-value math, not the largest visible number.
Switching to ULO without modelling the impact
ULO is fantastic for households with a battery and evening-heavy usage. It can be brutal for households without a battery if you happen to use a lot of power between 4 and 9 pm. Switching rate plans before you have the system installed and modelled is how you lose money on both ends.
Trusting an installer who only quotes one path
Every Ontario solar quote should model both paths against your actual 12-month consumption history. If a contractor tells you what to do without showing you the comparison, find another contractor. Solar X runs both scenarios at no cost before any contract is signed.
Frequently Asked Questions
Can I take both the HRS solar rebate and use net metering?
Generally no. Under current 2026 Ontario rules, the Home Renovation Savings (HRS) solar rebate is structured for load-displacement systems (generate and consume on-site) and is not designed to stack with traditional 1:1 retail-credit net metering. You typically have to choose one path. The HRS battery rebate can apply alongside either path. Confirm specific eligibility with your installer at quote time, since program rules can be revised.
How much is the HRS solar rebate in Ontario in 2026?
The Home Renovation Savings Program pays $1,000 per kW of installed solar capacity, capped at $5,000 (5 kW). It also pays $300 per kWh of installed battery storage, capped at $5,000. Combined HRS cap on solar plus battery is $10,000. Heat pump rebates ($7,500 air-source, $12,000 ground-source) are separate and stack on top.
What credit do I get for excess solar exported under net metering?
Ontario net metering pays a 1:1 retail credit at your blended residential electricity rate, which is roughly 12 to 16 cents per kWh depending on your LDC and rate plan. Credits roll over month to month and expire after 12 months. The credit is for the energy charge only, not the delivery, regulatory, or HST portions of your bill.
Is net metering better than the HRS rebate?
It depends on three things: how much solar you'll export, whether you have a battery, and which rate plan you're on. Net metering tends to win when you export a lot during the day (south-facing roof, modest household consumption, no battery). The HRS rebate path tends to win when you have a battery, you're on the Ultra-Low Overnight rate plan, and you can capture peak-shaving arbitrage at 39.1¢ peak vs 3.9¢ overnight.
What is load displacement solar?
Load displacement is a solar system designed primarily to generate electricity that is consumed on-site rather than exported to the grid. The system is typically right-sized to the home's actual consumption rather than oversized for export. The HRS solar rebate is structured around this configuration. A battery is often paired with the system to store midday solar for evening use, especially valuable on the Ultra-Low Overnight rate plan.
Do I have to choose at the time of installation?
Effectively yes. The HRS rebate requires pre-approval before installation and is paid based on the configuration installed. Net metering is set up at interconnection time with your local distribution company. Switching between the two after installation is administratively expensive and not all systems are configured for both. Solar X models both scenarios for every Ontario homeowner before the contract is signed so the choice is informed and locked in upfront.
Which Ontario LDCs support net metering?
Net metering is available across all Ontario local distribution companies, including Toronto Hydro, London Hydro, Hydro One, Alectra Utilities, Hydro Ottawa, Burlington Hydro, Oakville Hydro, Milton Hydro, Utilities Kingston, Oshawa PUC, and others. Connection process, fees, and timelines vary by LDC. Solar X handles the interconnection paperwork for every Ontario homeowner we install.
What if I want a battery but not the HRS rebate?
You can install a battery on a net-metered system and still capture ULO arbitrage value (charge overnight at 3.9¢, discharge at 39.1¢ peak). You forego the HRS battery rebate (up to $5,000) in this configuration. The math is highly home-specific and worth modelling before deciding. In our experience, larger battery installs (15 kWh and up) with strong ULO usage often justify taking the HRS battery rebate even if it constrains the solar path.
Can I combine HRS with municipal LIC financing?
Yes, across different measures. You can finance the project through a municipal LIC program (BetterHomes London, Toronto HELP, Better Homes Hamilton, Better Homes Kingston, Better Homes Peterborough, BetterHomes Dufferin, Aurora HERLP) and claim the HRS rebate on the same project, as long as no single rebate is being applied to the same line item twice. Solar X models the optimal stack at quote time.
What's the typical payback difference between the two paths?
For a typical 8 to 10 kW Ontario residential install, payback runs roughly 7 to 9 years on either path. The HRS + battery + ULO path tends to come in 1 to 2 years sooner for households with strong evening peak usage and ULO enrollment. Net metering tends to come in 1 to 2 years sooner for households with high daytime self-consumption and modest evening usage. The right answer depends on your actual hydro bill profile, which we pull and analyze before quoting.
How Solar X Decides for Each Customer
Step 1: Pull your 12-month hydro history
Before we issue a quote we ask for authorization to pull your last 12 months of hourly consumption from your LDC. That is the data the rest of the model rests on. Without it, every projection is a guess.
Step 2: Model both paths
We run net metering and HRS plus battery side by side, projecting 25 years of bill impact, system output, rebate value, and ULO arbitrage where applicable. You see the math, not just the conclusion.
Step 3: Pick the path with the bigger NPV
Whichever path nets more money over the system life on your specific home. Sometimes the answer surprises us. We have signed customers onto net metering even when we expected HRS to win, and vice versa, because the household consumption pattern decided it.
Why Solar X
Get both paths modelled on your real hydro data
Solar X pulls your last 12 months of consumption from your LDC, runs both the HRS rebate and net metering scenarios across 25 years, and shows you the actual numbers. No quote until you have seen the math. Permits, ESA inspection, and LDC interconnection approvals are never guaranteed until they are in hand, and we will be honest about timelines from the first conversation.
Reviewed by Solar X Engineering Team. ESA-Licensed Electrical Contractor (Ontario). Registered Save On Energy contractor.