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Frequently Asked Questions
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Are there fees associated with net metering?Some utilities charge interconnection fees, standby charges, or grid maintenance fees for net-metered customers.
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Can net metering policies change?Yes, policies and compensation rates can change depending on provincial laws, regulatory decisions, and utility company policies.
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Are there limits on the size of a solar system for net metering?Yes, some utilities impose size limits based on your average energy consumption or state regulations. An assessment is done in order to determine the capacity limits. Residential systems in Ontario are capped at 10 kW AC. It is possible to do a larger system but this requires a costly capacity impact assessment (CIA). CIAs are done for larger scale commercial solar systems.
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What is solar net metering?Net metering is a billing mechanism that allows solar panel owners to send excess electricity back to the grid and receive credits on their electricity bill.
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How does net metering work?When your solar panels produce more electricity than you use, the excess power is sent to the grid. Your utility company provides credits for the surplus, which can be used when your panels aren't generating enough power (e.g., at night or on cloudy days).
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What are the benefits of net metering?· Reduces electricity bills · Increases return on investment for solar panels · Supports renewable energy adoption · Reduces strain on the power grid especially in the daytime when the demand is greatest
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Do all utilities offer net metering?Yes, but there can be capacity constraints in certain parts of the province. We typically submit an initial application to the utility to determine the grid constraints.
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What happens if my solar system produces more energy than I use over the year?There is no financial benefit of producing more power than what you use.
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Will I still have an electricity bill with net metering?Yes, unless your solar system generates more electricity than your total consumption, you will still pay for any additional energy used and the monthly fixed service charges.
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Can I roll over excess net metering credits?Yes, most utilities allow unused credits to roll over month to month, but some may reset them at the end of the billing year.
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How are net metering credits calculated?Credits are typically calculated based on the retail electricity rate per kilowatt-hour (kWh) and can be applied to future electricity bills.
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Can I expand my solar system after installing net metering?Yes, but you may need approval from your utility company, and it could affect your net metering agreement.
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Will net metering work if there is a power outage?No, most grid-tied solar systems automatically shut down during a power outage unless paired with battery backup.
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Do I need a battery storage system for net metering?No, battery storage is not required for net metering, but it can help store excess energy for use during outages or peak demand times.
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What equipment is needed for net metering?· Solar panels · Inverter (converts DC to AC) · Racking, rodent guard, wiring · Bi-directional meter (tracks energy flow to and from the grid) · In some cases, batteries to store power for use in the event of a power outage
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Why oversize the solar panel DC Side VS the inverter AC side of a Solar System (DC:AC ratio)?Oversizing the DC side of a solar system (i.e., installing more solar panel capacity than the inverter's AC output rating) is a common practice known as DC-to-AC oversizing or inverter loading ratio (ILR). This is done for several reasons: Maximizing Inverter Efficiency · Inverters operate most efficiently at high loads (typically around 80-100% of their rated capacity). · Solar panels rarely produce their full rated output due to factors like shading, temperature, and soiling. Oversizing the DC side ensures the inverter runs closer to its optimal efficiency more often. Compensating for Solar Panel Losses · Temperature losses: Solar panels lose 0.3% to 0.5% efficiency per degree Celsius above 25°C. · Dirt and shading: Partial shading, dust, and other obstructions reduce panel output. · Degradation over time: Solar panels degrade at about 0.5% per year, meaning they produce less energy as they age. Increasing Energy Yield (kWh) Over the Day · Solar production follows a bell curve, peaking at midday. · A properly oversized DC system allows for more energy generation during morning and late afternoon hours, ensuring the inverter operates near full capacity for a longer period. Optimizing for Net Metering or Self-Consumption · In areas with net metering caps (such as Ontario, where you cannot sell excess energy), it is beneficial to maximize self-consumption rather than peak power output. · A higher DC-to-AC ratio allows homeowners to produce more power throughout the day while staying within inverter limits. Cost Savings on Inverter Sizing · Inverters are expensive; installing a smaller AC inverter while increasing DC panel capacity can be more cost-effectivethan using a larger inverter. · Most grid-tied inverters can handle a DC-to-AC ratio of 1.2 to 1.5 without significant clipping losses. What’s the Ideal Oversizing Ratio? · 1.2 to 1.5 is a typical DC-to-AC ratio in most residential solar installations. Many of the inverters that we use on our projects allow for a 2:1 DC to AC ratio.
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Does net metering affect my home's resale value?Yes, homes with solar panels and net metering agreements often have higher resale value due to energy cost savings.
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Are there tax benefits or incentives for net metering?Many locations offer tax credits, rebates, and incentives for installing solar panels, such as the federal Canada Greener Homes program and the provincial Save On Energy program.
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Is net metering the same as a solar feed-in tariff?No, feed-in tariffs (FIT) pay solar owners a fixed rate for all electricity generated, while net metering credits excess power at retail or wholesale rates.
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