Ontario’s New Solar Rebate Comes with a Major Catch: No Net Metering

The new Home Renovation Savings Rebate for solar and battery systems in Ontario is sparking frustration and confusion within the solar industry. We want to keep you informed about these changes and their impact on homeowners and installers. As we navigate this evolving situation, we’ll provide the latest updates to help you make the best decisions for your solar investment.

"This program had the potential to make a real difference for homeowners looking to go solar. Unfortunately, by eliminating net metering and restricting how the rebate can be used, the government has made it harder for families to maximize their savings and energy independence."
-Steve Dyck, Guelph Solar President

The new rebate program was designed in a way that makes solar less financially beneficial for homeowners. One of the most significant issues is that net metering is not allowed under the new rebate program. Net metering is the key to making solar work for homeowners. It allows them to share the excess energy from their solar installation with the grid and rewards them by issuing monetary credits they can use when their solar system is not generating energy. By not allowing net metering as part of this program, homeowners won’t save as much on their hydro bills.

The new rebate program only allows load displacement solar systems. In load displacement, the additional energy produced by your solar panels has to be used immediately, fed to a battery, or it will go to waste. Smaller homes don’t benefit from load displacement, and need net metered solar systems to offer significant savings. For larger homes, net metered solar systems still offer more savings and faster payback than load displacement systems. Click here to see several case studies comparing net metered systems to load displacement systems.

Additionally, the rebate is available only for new solar and battery installations. If you already have a solar system and were hoping to add more panels or a battery, you do not qualify for the rebate. Standalone battery systems are also not eligible under this program.

Why This is Frustrating
This new solar and battery rebate for homeowners in Ontario may look like a win for everyone, as well as the environment, but in reality, it isn’t. Instead of helping families lower their energy costs in a meaningful and sustainable way, and making our grid cleaner, the program limits savings and the value of the rebate is not enough to make up for the loss in savings. 

The Home Renovation Savings program website does not provide a legitimate reason for net metering’s exclusion from the rebate. The program claims the rebate offer is to reduce home energy use, greenhouse gas emissions and demand on the electricity grid, but net metered systems do all of the above far better than load displacement systems.

What’s Next?
If you are considering installing solar, we encourage you to reach out. Our team is here to help maximize your energy savings with solar. 

We will be sending out a breakdown of how this rebate can possibly be used.  We will also keep you informed if anything changes with the program. As always, thank you for being part of the Guelph Solar community.

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