New Brunswick Solar Guide: Incentives, Costs & Net Metering

Solar Resource by Region

New Brunswick receives good solar irradiance for its latitude:

• Moncton/Dieppe: 1,180 kWh/kW annually (best in province)
• Saint John: 1,160 kWh/kW annually
• Fredericton: 1,150 kWh/kW annually
• Bathurst/Miramichi: 1,100-1,130 kWh/kW annually
• Edmundston: 1,080 kWh/kW annually (northern climate)

Context: Southern Ontario averages 1,250 kWh/kW, so NB gets 88-95% of Ontario's solar production. This is excellent for Atlantic Canada and sufficient for strong ROI.

Climate Considerations

• Winter production: December-January produce 15-20% of annual output (normal for Canadian climate)
• Snow: Moderate accumulation; steep panel angles (40-45°) help snow slide off naturally
• Fog: Coastal areas (Saint John, St. Andrews) experience more fog reducing spring/summer production by 5-10%
• Humidity: Higher humidity can reduce efficiency slightly (1-2%) but panels designed for coastal climates

Program Overview

NB Power offers net metering for solar systems up to 100 kW (residential) and 1 MW (commercial). The program allows you to bank excess solar production as credits and use them to offset future consumption.

Key Features

• Credit rate: Full retail rate ($0.1283/kWh residential)
• Credit expiry: Annual true-up in March; excess credits expire (no cash payment)
• System size limit: 100 kW residential, 1 MW commercial
• Monthly fixed charge: Still applies (~$22/month) even with net-zero consumption
• Interconnection fee: $500-$1,000 depending on system size

How Credits Work

Example Monthly Breakdown:

• July (peak solar): Generate 1,200 kWh, consume 600 kWh → 600 kWh credit banked
• January (low solar): Generate 200 kWh, consume 900 kWh → Draw 600 kWh from credits + pay for 100 kWh

The goal is to size your system so annual production matches annual consumption, minimizing both electricity purchases AND credit expiry.

Application Process

1. Pre-application: Submit system details to NB Power for technical review
2. Approval: NB Power issues interconnection approval (2-4 weeks)
3. Installation: Licensed electrician installs system to NB code
4. Inspection: Provincial electrical inspection required
5. Commissioning: NB Power installs bi-directional meter
6. Activation: System goes live on net metering (1-2 weeks after commissioning)

Timeline: 6-10 weeks total from application to activation

1. Commercial Clean Technology ITC

For Businesses:

• Tax credit: 30% of system cost (refundable for CCPCs)
• Eligible costs: Equipment, installation, electrical upgrades
• Requirements: Meet prevailing wage and apprenticeship rules for full 30%
• Effective period: Through 2033 (then phases down)

2. Provincial Property Tax Exemption

New Brunswick exempts solar installations from property tax assessment increases. Your home value may increase, but the portion attributable to solar won't raise property taxes.

Typical Residential System (8 kW)

System Specifications:

• 20× 400W panels (Tier 1: Canadian Solar, Jinko, Trina)
• Microinverters (Enphase IQ8+) or string inverter (SolarEdge)
• Roof-mounted on south-facing 40° pitch
• Annual production: 9,200 kWh (Fredericton)

Cost Breakdown:

• Base system cost: $24,000
• EnerGuide evaluation: $800
• Gross cost: $24,800
• Net cost: $24,800
• Cost per watt: $3.10/W

Annual Savings

• Production: 9,200 kWh
• Electricity rate: $0.1283/kWh
• Annual savings: $1,180
• Monthly fixed charge: $22 × 12 = $264 (still paid)
• Net annual savings: $916

Return on Investment

• Payback period: 21.6 years (without rate increases)
• With 3% annual rate increases: 16.5 years
• 25-year savings: $32,000-$45,000 (depending on rate increases)
• ROI: 62-127% return over 25 years

Note: NB has longer payback than provinces with higher electricity rates (ON, NS), but still profitable over system lifetime.

1. Solar X Flexible Financing

Solar X Flexible Financing:

• 8 kW system cost: $24,800
• Flexible monthly payments
• Competitive rates available
• Monthly electricity savings offset payments from day one

2. Home Equity Line of Credit (HELOC)

• Interest rates: Prime + 0.5-1% (~7.5-8% currently)
• Flexible repayment
• Interest tax-deductible if used for home improvement

3. Solar-Specific Loans

Some installers partner with lenders offering:

• Terms: 10-15 years
• Rates: 7-10%
• No home equity required

Optimal System Design

• Orientation: South-facing ideal; southwest acceptable (5% loss); avoid north
• Tilt angle: 40-45° optimal for NB latitude (helps snow shed)
• Sizing: Target 90-100% of annual consumption (avoid over-sizing due to credit expiry)
• Microinverters vs string: Microinverters better for partial shading, longer warranty (25 years)

Seasonal Optimization

• Winter: Steeper angle captures low-angle sun and sheds snow
• Summer: Abundant production - shift high-consumption activities (laundry, pool pump) to daytime
• Spring/Fall: Shoulder seasons with good production and moderate consumption (best credit-building months)

Maintenance for Maritime Climate

• Salt air: Use marine-grade racking/hardware near coast (Saint John, St. Andrews)
• Humidity: Ensure good attic ventilation to prevent moisture issues
• Winter: Check panels after major snowstorms; safely clear bottom row if heavily loaded
• Spring: Annual cleaning after pollen season (May-June)

Current Rate Structure

• Residential rate: $0.1283/kWh (highest in Maritimes)
• Monthly fixed charge: $22.00
• No time-of-use pricing: Flat rate all hours

Future Rate Trends

NB Power faces aging infrastructure and Point Lepreau nuclear refurbishment costs. Energy & Utilities Board approved 3% annual increases through 2027. Expect rates to reach $0.14-$0.15/kWh by 2030, improving solar economics significantly.

Impact on Solar ROI: Every 1¢/kWh rate increase improves annual savings by $90-$100 per kW installed, shortening payback by 1-2 years.