Quick answer: On September 2, 2026, the Ontario Energy Board released a report recommending that Ontario replace net metering with net billing, where exported solar power is paid by a tariff based on when and where it reaches the grid instead of a credit at your retail rate. It is a recommendation only. Net metering rules have not changed, and no start date has been set.
Last checked against the OEB’s report to the Minister, Valuation of Distributed Energy Resources, listed under Sources. We will update this page if the province acts on the recommendations.
If you have solar, or you are planning it, the way Ontario pays for the power your panels send to the grid may change in the coming years. The OEB’s report sets out what it wants to change and why, but it leaves the timing and the details for later. We are Solar X, a Canadian residential solar and battery installation company serving Ontario homeowners. Below we explain what the report says, what is still undecided, and how to plan a system that holds its value either way.
What did the OEB recommend?
The report, titled Valuation of Distributed Energy Resources, answers a request from the Minister of Energy and Mines under Ontario’s Integrated Energy Plan. It looks at how solar, batteries and other distributed energy resources are paid and what they pay to use the grid. For net metering, the OEB recommends that the Ministry, with the OEB’s support:
- Move from net metering to net billing, paying for exported electricity through a time and location based tariff.
- Remove the restrictions on community net metering, which today is limited to pilot and demonstration projects.
- Raise the threshold at which local utilities must accept net metering or net billing applications, from 1% to 2% of their annual peak load.
How does net metering work in Ontario today?
Under Ontario Regulation 541/05, when your solar system produces more than your home is using, the extra power flows to the grid and you receive a credit on your bill. The OEB report describes this as compensating injected electricity at the retail rate. Credits carry forward to later bills, but unused credits expire after 12 months. Our guide to net metering in Ontario covers the current rules in detail.
What is net billing, and how would exports be valued?
With net billing, power you export is no longer credited at your retail rate. It is paid at a tariff meant to reflect what that power is worth to the grid at that time and place. The report suggests the tariff could be built from these parts:
| Component | Proposed basis |
|---|---|
| Energy | A dynamic energy price, for example locational marginal pricing |
| Generation capacity | A forward set price matched to an IESO capacity price, such as a capacity auction result |
| Transmission capacity | A forward set price by time and location, zero where there is no constraint |
| Distribution capacity | A forward set price by time and location, zero where there is no constraint |
| Emissions | Zero, unless government policy says otherwise |
| Ancillary services | Zero in the tariff, paid separately where a resource provides them |
Source: OEB, Valuation of Distributed Energy Resources, Section 2.2.1. These are proposed building blocks, not rates. Actual values would be set through a later process.
Net metering and net billing side by side
| Net metering (today) | Net billing (recommended) | |
|---|---|---|
| What an exported kWh earns | A credit at your retail rate | A tariff based on when and where the power is exported |
| Power you use yourself | Avoids buying power at your retail rate | Same: still avoids buying power at your retail rate |
| Credit expiry | Unused credits expire after 12 months | The report says removing the 12 month limit could be considered |
| Status | In force under O. Reg. 541/05 | A recommendation only. Needs a regulation change |
Based on the OEB report and O. Reg. 541/05 as of October 30, 2026.
Why does the OEB want to change it?
The OEB’s argument is that your retail rate pays for more than the electricity itself. It also covers costs such as capacity to keep supply adequate and current and past conservation and storage programs. When exported power earns that full rate, the report says, part of those costs shifts to customers who do not have net metering.
The report is also clear that this is a small issue today. It notes that residential distribution rates do not depend on how much electricity you use, so net metered homes still pay their share of the local grid, and that fewer than 1% of customers use net metering. The concern is that the cost shift would grow as more homes add solar, so the OEB wants the new model ready before that happens.
When would net billing start?
There is no date. According to the report, the change would need three things:
- The Ministry of Energy and Mines would amend O. Reg. 541/05.
- The OEB would design the tariff.
- Local utilities would update their billing systems.
The OEB says the timeline should be paced to account for other changes in the sector and the capacity of stakeholders to take part in setting compensation levels. Until the regulation changes, net metering continues as it works today.
What happens to homes that already have solar?
The report says the move to net billing should consider a legacy provision for existing net metering customers. The goal is to account for the payback period of systems already installed, and to make sure these customers get adequate notice of any change to their compensation. Some stakeholders also asked for a gradual transition and for current customers to be grandfathered.
This is a recommendation to the province, not a rule. If the Ministry moves ahead, the regulation would decide whether existing systems keep net metering, for how long, and how credits already built up are handled.
Planning solar while the rules are under review?
We will look at your usage and show you how much of your system's value comes from power you use yourself versus power you export, so you can see how a future change could affect you.
Get a Free Solar AssessmentWhat else is in the report?
A higher limit for new solar connections
Today, local utilities only have to accept net metering applications until net metered generation reaches 1% of their three year average annual peak load. The OEB found six utilities were already past that point in 2024 and forecasts that about twenty could pass it by 2030. It proposes raising the threshold to 2% through an update to the Distribution System Code, which the OEB can do itself.
Community net metering beyond pilots
Under Ontario Regulation 679/21, each community net metering project currently has to be listed in the regulation. The OEB recommends removing that requirement so projects can go ahead more widely, which could help residents who do not have their own roof, such as people in condos or apartments.
Grid batteries and transmission charges
The OEB says it will prioritize exempting distribution connected storage from Retail Transmission Service Rates when that storage has been procured by the IESO and takes part in the IESO-administered markets. This targets grid scale storage projects, not home batteries behind your meter.
Connection costs and business pricing
The report gives the government three options for who pays to connect storage and other resources, and recommends steps toward a time-of-use style price plan for Class B business customers who are not on the regulated price plan.
What does this mean if you are planning solar now?
The key detail is what net billing would not change. Power your home uses directly from your panels still avoids buying that power from the grid at your retail rate. Only exported power would be paid differently. So the more of your solar you use yourself, the less a change to export compensation affects your savings.
- Size the system to your usage. A system built mainly to offset your own consumption depends less on export credits than one sized to export a large surplus.
- Consider a battery. A battery stores daytime solar for the evening, so more of your production replaces power you would otherwise buy. Our guide to whole home battery backup in Ontario explains how that works.
- Compare the rebate path. The Home Renovation Savings solar incentive and net metering are separate paths today, and the OEB recommends keeping them separate under net billing. Our comparison of the HRS rebate and net metering walks through both.
You can see our residential solar and battery services for the equipment we install.
Frequently Asked Questions
Is Ontario getting rid of net metering?
Not at this point. The Ontario Energy Board has recommended that the province move from net metering to net billing, in a report to the Minister of Energy and Mines released September 2, 2026. Net metering is set by Ontario Regulation 541/05, so the change would need the Ministry to amend that regulation. As of October 30, 2026, net metering rules are unchanged.
When could the change take effect?
No date has been set. The report says the timeline should be paced to allow for changes in the sector and for stakeholders to help define compensation levels. It also notes that net metering is used by less than one percent of customers today, so the cost issue it wants to fix is currently small. Any change would come through a regulation amendment first.
I already have solar. Would my credits change?
Nothing changes today. The report says a move to net billing should consider a legacy provision for existing net metering customers, to account for the payback of systems already installed, and that these customers should get adequate notice of any change. That is a recommendation, not a guarantee. The final rules for existing systems would be set by the province.
How would power sent to the grid be paid under the new model?
Through a tariff that depends on when and where you export. The OEB suggests it could combine a dynamic energy price, a generation capacity value tied to an IESO capacity price, and transmission and distribution capacity values that are zero where the grid has no constraint. The actual rates would be designed later through an OEB process.
Could the 12-month credit expiry go away?
Possibly. Today, unused net metering credits expire after 12 months. One stakeholder asked for that limit to be removed, and the OEB report says removing it could be considered once exports are paid through a net billing tariff. It adds that the transition would need to decide how to handle credits customers have already built up.
Should I wait before going solar?
The rules in force today are known, and the report does not set a date for any change. Waiting means paying full price for grid power in the meantime. A practical approach is to size the system around the power your home uses, so most of the value comes from avoided purchases rather than export credits. A quote should model your actual usage.
Does adding a home battery make sense under net billing?
It can. Under net billing, power you store and use later still avoids buying grid power at your retail rate, while exported power earns a tariff that may be lower in many hours. A battery shifts more of your solar into your own use. Whether it pays off depends on your usage, your price plan and the battery cost.
How does the Home Renovation Savings rebate fit in?
Today it is a separate path from net metering, so you choose one or the other. The OEB report recommends keeping that separation under net billing, because combining an upfront incentive with export compensation would pay twice for the same value. Program terms and deadlines are set by Save on Energy, so check the current rules before you decide.
See how your solar savings hold up under either model
We will review your hydro bills and design a system around the power your home actually uses, with or without a battery.
Get a Free Solar AssessmentSources
- Ontario Energy Board, Report to the Minister of Energy and Mines: Valuation of Distributed Energy Resources (dated March 2026, released September 2, 2026)
- Ontario Regulation 541/05, Net Metering, under the Ontario Energy Board Act, 1998
- Ontario Regulation 679/21 (community net metering), under the Ontario Energy Board Act, 1998