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The Home Renovation Savings Program:
Does it Help Solar Customers?
The new Home Renovation Savings Program (HRSP) for solar and battery systems in Ontario has sparked considerable debate within the solar industry as to how it might impact potential solar customers. The purpose of this post is to take a closer look at the financial viability, as well as advantages and disadvantages of the options available to individuals who want to install solar and/or battery systems for their homes. The in our experience we have found the main reason home owners choose solar systems is to reduce their hydro bill as much as possible.
The analysis that follows has determined that the HRSP rebate for solar limits consumers' solar system options, reducing system size, payback, and economic feasibility. The HRSP is somewhat advantageous for homeowners who want to install a new battery backup, however those customers will also need to install a small solar system, which would require them to spend more upfront.
The new Home Renovation Savings Program (HRSP) for solar and battery systems in Ontario has sparked considerable debate within the solar industry as to how it might impact potential solar customers. The purpose of this post is to take a closer look at the financial viability, as well as advantages and disadvantages of the options available to individuals who want to install solar and/or battery systems for their homes. The in our experience we have found the main reason home owners choose solar systems is to reduce their hydro bill as much as possible.
The analysis that follows has determined that the HRSP rebate for solar limits consumers' solar system options, reducing system size, payback, and economic feasibility. The HRSP is somewhat advantageous for homeowners who want to install a new battery backup, however those customers will also need to install a small solar system, which would require them to spend more upfront.
INDEX
About the Home Renovation Savings Program
The HRSP is a new incentive offered by the provincial government as of January 28, 2025 that provides rebates up to $5,000 for solar and $5,000 for battery installations. However, there are a lot of exclusions from the program.
EXCLUDED PROJECTS
🚫 Battery-only projects
🚫 Addition of a battery to your current solar system
🚫 Addition of solar panels to your current solar system
🚫 Net metering (overproducing during the day/summer for nighttime/winter use)
The HRSP offers Ontarians a rebate on a non-export solar system, which surprisingly excludes the best option for solar currently available, net metering. So what's the difference between net metering and solar zero export?
The HRSP is a new incentive offered by the provincial government as of January 28, 2025 that provides rebates up to $5,000 for solar and $5,000 for battery installations. However, there are a lot of exclusions from the program.
EXCLUDED PROJECTS
🚫 Battery-only projects
🚫 Addition of a battery to your current solar system
🚫 Addition of solar panels to your current solar system
🚫 Net metering (overproducing during the day/summer for nighttime/winter use)
The HRSP offers Ontarians a rebate on a non-export solar system, which surprisingly excludes the best option for solar currently available, net metering. So what's the difference between net metering and solar zero export?
What You Need to Know about Solar for the New Rebate Program
Definition of Solar Net Metering
A net metered solar system is designed to offset a large portion of your annual electricity consumption. With net metering, you use energy produced by the solar array in your house first, reducing the energy drawn from the grid. If the solar system generates energy in excess of what your house needs at any particular point, the excess energy is sent to the grid and you receive energy credits to be used when the solar system is not producing enough to cover the energy your home is using. Those energy credits show up on your hydro bill.
A homeowner with net metering can generate credits during the day to pay for consumption at night, as well as generate credits during the summer to pay for consumption during the winter, when there is less sunlight. Essentially, it enables customers to use the grid as a "battery" to store excess energy for up to one year, thus potentially offsetting up to 100% of their annual hydro consumption. It’s an efficient and mutually beneficial system that has been proven to work through decades of data.
Definition of Solar Net Metering
A net metered solar system is designed to offset a large portion of your annual electricity consumption. With net metering, you use energy produced by the solar array in your house first, reducing the energy drawn from the grid. If the solar system generates energy in excess of what your house needs at any particular point, the excess energy is sent to the grid and you receive energy credits to be used when the solar system is not producing enough to cover the energy your home is using. Those energy credits show up on your hydro bill.
A homeowner with net metering can generate credits during the day to pay for consumption at night, as well as generate credits during the summer to pay for consumption during the winter, when there is less sunlight. Essentially, it enables customers to use the grid as a "battery" to store excess energy for up to one year, thus potentially offsetting up to 100% of their annual hydro consumption. It’s an efficient and mutually beneficial system that has been proven to work through decades of data.
Definition of Solar Zero Export
Solar zero export or non-export solar systems do not allow any energy to be sent to the grid. While they reduce consumption from the grid, they only produce optimally when the following two conditions are met at the same time:
Sunlight is available
Solar energy production is less than or equal to the home’s energy consumption.
Zero export solar systems without battery back-up cannot store any energy. This is why solar zero export systems are typically smaller than net metered systems. If a battery is present, a solar zero export system can store excess energy when the battery is not full.
Definition of Solar Zero Export
Solar zero export or non-export solar systems do not allow any energy to be sent to the grid. While they reduce consumption from the grid, they only produce optimally when the following two conditions are met at the same time:
Sunlight is available
Solar energy production is less than or equal to the home’s energy consumption.
Zero export solar systems without battery back-up cannot store any energy. This is why solar zero export systems are typically smaller than net metered systems. If a battery is present, a solar zero export system can store excess energy when the battery is not full.
Solar Case Studies
Below are three scenarios of homes of different sizes with different roof layouts and energy needs. The purpose of these case studies is to compare the performance of a net metered solar system vs. a solar zero export solar system in several realistic energy consumption scenarios.
Below are three scenarios of homes of different sizes with different roof layouts and energy needs. The purpose of these case studies is to compare the performance of a net metered solar system vs. a solar zero export solar system in several realistic energy consumption scenarios.
Scenario 1: Heavy energy consumption at 20,000kWh/year
This home is well-oriented for sun, since south and west facing roofs generate the most solar energy. It has ample roof space, no shading, and a low roof slope, which makes installation quicker and easier. The images below show a simulated design for solar panels with a net metered system (Fig 1A) and a design for solar zero export (Fig 1B). This is the ideal scenario for both net metering and solar zero export.
This home is well-oriented for sun, since south and west facing roofs generate the most solar energy. It has ample roof space, no shading, and a low roof slope, which makes installation quicker and easier. The images below show a simulated design for solar panels with a net metered system (Fig 1A) and a design for solar zero export (Fig 1B). This is the ideal scenario for both net metering and solar zero export.
Solar Scenario 1A) Net Metering:
Fig 1A shows a solar system designed to cover 92.6% of yearly power usage.
44 - 425W solar panels
1 - 10kW inverter
44 - solar panel optimizers
This system is designed to generate excess energy during the daytime and warm months when there are longer days and more sunlight, exporting excess energy to the electrical grid to use at nighttime and winter months.
Solar Scenario 1A) Net Metering:
Fig 1A shows a solar system designed to cover 92.6% of yearly power usage.
44 - 425W solar panels
1 - 10kW inverter
44 - solar panel optimizers
This system is designed to generate excess energy during the daytime and warm months when there are longer days and more sunlight, exporting excess energy to the electrical grid to use at nighttime and winter months.
Solar Scenario 1B) Solar Zero Export System:
Fig 1B shows a solar system designed to cover 16.8% of the home’s consumption. It is designed to minimize the amount of energy wasted while maximizing the HRSP rebate value. This system results in only 1-2% of energy being wasted, which is ideal for solar zero export.
10- 425W solar panels
1 - 5kW inverter
10 - solar panel optimizers
Solar Scenario 1B) Solar Zero Export System:
Fig 1B shows a solar system designed to cover 16.8% of the home’s consumption. It is designed to minimize the amount of energy wasted while maximizing the HRSP rebate value. This system results in only 1-2% of energy being wasted, which is ideal for solar zero export.
10- 425W solar panels
1 - 5kW inverter
10 - solar panel optimizers
Financial and Payback Comparison
The net metered system generates 4X the energy of the solar zero export system. This enables the homeowner to generate 90-100% of their energy usage, depending upon weather that year. They recoup the initial investment within 10.5 years and enjoy free energy each year thereafter, since the panels are guaranteed for 25 years but typically last much longer.
The solar zero export system is a lower priced system initially. However, the homeowner is left with a monthly hydro bill that is only 16.8% less than it was before they installed solar. Their hydro bill will continue to increase as electricity costs continue to rise. The solar zero export system has enabled the homeowner to recoup their investment in 13.5 years but they continue to pay hydro bills forever.
Financial and Payback Comparison
The net metered system generates 4X the energy of the solar zero export system. This enables the homeowner to generate 90-100% of their energy usage, depending upon weather that year. They recoup the initial investment within 10.5 years and enjoy free energy each year thereafter, since the panels are guaranteed for 25 years but typically last much longer.
The solar zero export system is a lower priced system initially. However, the homeowner is left with a monthly hydro bill that is only 16.8% less than it was before they installed solar. Their hydro bill will continue to increase as electricity costs continue to rise. The solar zero export system has enabled the homeowner to recoup their investment in 13.5 years but they continue to pay hydro bills forever.
CONSUMPTION 20,000 kWh/YEAR
Scenario 1
Scenario 1
Net Metering
Net Metering
Solar Zero Export
Solar Zero Export
Solar array size
Solar array size
18.7 kW
18.7 kW
4.25 kW
4.25 kW
Generated (1st yr)
Generated (1st yr)
Generated (1st yr)
19,200 kWh
19,200 kWh
4,870 kWh
4,870 kWh
HRSP rebate
HRSP rebate
$0
$0
$4,250
$4,250
Payback period
Payback period
10.5
10.5 years
10.5
13.5
13.5 years
13.5
25 year savings
25 year savings
$134,750
$134,750
$34,560
$34,560
Scenario 2: Slightly above-average energy consumption at 12,400kWh/year
Scenario 2: Slightly above-average energy consumption at 12,400kWh/year
This home, located in Mississauga, has an ideal south-facing roof with no shading and a moderately steep slope (7:12 pitch). The homeowner’s energy use is slightly above average, likely including electric heating, a pool pump, or an EV charger.
Peak energy use occurs in summer due to air conditioning, pool pumps, and other cooling-related needs.
Winter consumption is also high, likely due to electric heating or space heating.
Morning and evening demand is significant because this homeowner uses a lot of electricity before sunrise and after sunset.
Time-of-Use (TOU) billing applies, meaning electricity costs are higher during mid-peak and peak hours.
The images below compare a net metering system (Fig 2A) with a solar zero export system (Fig 2B).
This home, located in Mississauga, has an ideal south-facing roof with no shading and a moderately steep slope (7:12 pitch). The homeowner’s energy use is slightly above average, likely including electric heating, a pool pump, or an EV charger.
Peak energy use occurs in summer due to air conditioning, pool pumps, and other cooling-related needs.
Winter consumption is also high, likely due to electric heating or space heating.
Morning and evening demand is significant because this homeowner uses a lot of electricity before sunrise and after sunset.
Time-of-Use (TOU) billing applies, meaning electricity costs are higher during mid-peak and peak hours.
The images below compare a net metering system (Fig 2A) with a solar zero export system (Fig 2B).
Solar Scenario 2A) Net Metering System: This system was designed to maximize available roof space. It will provide 78.6% of annual energy consumption, earning solar credits during peak production times to offset nighttime and winter usage.
16 - 500W solar panels
1 - 7.6kW inverter
16 - solar panel optimizers
Solar Scenario 2A) Net Metering System: This system was designed to maximize available roof space. It will provide 78.6% of annual energy consumption, earning solar credits during peak production times to offset nighttime and winter usage.
16 - 500W solar panels
1 - 7.6kW inverter
16 - solar panel optimizers
Solar Scenario 2B) Solar Zero Export System: This system would be significantly smaller than the net metered system, providing just 20.3% of yearly consumption. It was designed to match real-time energy use and avoid overproduction, which minimizes wasted solar energy.
10 - 500W solar panels
1 - 3.8kW inverter
10 - solar panel optimizers
Solar Scenario 2B) Solar Zero Export System: This system would be significantly smaller than the net metered system, providing just 20.3% of yearly consumption. It was designed to match real-time energy use and avoid overproduction, which minimizes wasted solar energy.
10 - 500W solar panels
1 - 3.8kW inverter
10 - solar panel optimizers
⚠️ 27% or more of the solar energy that could be generated is wasted in this solar zero export system. This is because the energy cannot be stored or sent to the grid. If the home’s energy demand is lower than the power being generated, the system will self regulate to only generate as much energy as there is demand for.
Imagine you have a solar installation with 10 panels generating energy during the day but all you need to power is one lightbulb. What happens to the extra energy produced by the solar system? It’s wasted.
This highlights the fundamental drawback of solar zero export systems: while they reduce some grid reliance, they waste a significant amount of solar energy and provide far less financial return compared to net metering.
⚠️ 27% or more of the solar energy that could be generated is wasted in this solar zero export system. This is because the energy cannot be stored or sent to the grid. If the home’s energy demand is lower than the power being generated, the system will self regulate to only generate as much energy as there is demand for.
Imagine you have a solar installation with 10 panels generating energy during the day but all you need to power is one lightbulb. What happens to the extra energy produced by the solar system? It’s wasted.
This highlights the fundamental drawback of solar zero export systems: while they reduce some grid reliance, they waste a significant amount of solar energy and provide far less financial return compared to net metering.
Financial and Payback Comparison
This solar zero export system has a lower upfront cost, and the HRSP rebate helps shorten the payback period slightly. Solar zero export systems are fundamentally limited, and they inherently waste energy. In addition, when the home needs power at night or during winter, there’s no excess solar energy available to offset those costs.
In this scenario, net metering offers a much faster payback and over four times the lifetime savings. The reason is simple: net metering generates more than three times the energy of this solar zero export system, while only costing about twice as much. This means greater long-term financial benefits and a significant reduction in hydro bills. The truth about the HRSP rebate is that it does not provide enough financial benefit to make solar zero export attractive.
Financial and Payback Comparison
This solar zero export system has a lower upfront cost, and the HRSP rebate helps shorten the payback period slightly. Solar zero export systems are fundamentally limited, and they inherently waste energy. In addition, when the home needs power at night or during winter, there’s no excess solar energy available to offset those costs.
In this scenario, net metering offers a much faster payback and over four times the lifetime savings. The reason is simple: net metering generates more than three times the energy of this solar zero export system, while only costing about twice as much. This means greater long-term financial benefits and a significant reduction in hydro bills. The truth about the HRSP rebate is that it does not provide enough financial benefit to make solar zero export attractive.
CONSUMPTION 12,400 kWh/YEAR
Scenario 1
Net Metering
Solar Zero Export
Solar array size
8.0 kW
3.5 kW
Generated (1st yr)
10,050 kWh
3,230 kWh
HRS rebate
$0
$3,800
Payback period
10.6
18.1
25 year savings
$81,952
$18,100
CONSUMPTION 12,400 kWh/YEAR
Solar Scenario 2
Net Metering
Solar Zero Export
Solar array size
8.0 kW
3.5 kW
Generated (1st yr)
Generated (1st yr)
10,050 kWh
3,230 kWh
HRSP rebate
$0
$3,800
Payback period
10.6
10.6 years
18.1
18.1 years
25 Year savings
$81,952
$18,100
Scenario 3: Average energy consumption at 8,400kWh/year
For this scenario, a typical Kitchener home is modelled, with moderate energy consumption of 8,400kWh/year that includes some high-draw appliances. The house has Southeast-East exposure, meaning it doesn’t get full south-facing sunlight, and it also experiences partial shading from a backyard tree on the south side. Additionally, the home has a moderate roof slope (5:12 pitch), which can slightly impact solar production.
Despite these limitations, this home can still benefit from solar, though the difference between net metering and solar zero export is particularly pronounced in this case. The images below compare optimal designs for both options - a net metered solar system (Fig 3A) and a solar zero export system (Fig 3B).
This scenario highlights how homes with less-than-ideal solar conditions still gain significant long-term value from net metering, whereas a solar zero export system remains severely limited in efficiency and financial return.
For this scenario, a typical Kitchener home is modelled, with moderate energy consumption of 8,400kWh/year that includes some high-draw appliances. The house has Southeast-East exposure, meaning it doesn’t get full south-facing sunlight, and it also experiences partial shading from a backyard tree on the south side. Additionally, the home has a moderate roof slope (5:12 pitch), which can slightly impact solar production.
Despite these limitations, this home can still benefit from solar, though the difference between net metering and solar zero export is particularly pronounced in this case. The images below compare optimal designs for both options - a net metered solar system (Fig 3A) and a solar zero export system (Fig 3B).
This scenario highlights how homes with less-than-ideal solar conditions still gain significant long-term value from net metering, whereas a solar zero export system remains severely limited in efficiency and financial return.
Solar Scenario 3A) Net Metering: This system was designed to offset 91.1% of the home's annual electricity consumption, producing excess energy from March to May and August to October.
16 - 425W solar panels
1 - 5kW inverter
16 - solar panel optimizers
Solar Scenario 3A) Net Metering: This system was designed to offset 91.1% of the home's annual electricity consumption, producing excess energy from March to May and August to October.
16 - 425W solar panels
1 - 5kW inverter
16 - solar panel optimizers
Solar Scenario 3B) Solar Zero Export System: This system would be significantly smaller than the net metered system, providing just 20.5% of yearly consumption. It was designed to align energy production with immediate home demand.
8 - 425W solar panels
1 - 3.8kW inverter
8 - solar panel optimizers
Solar Scenario 3B) Solar Zero Export System: This system would be significantly smaller than the net metered system, providing just 20.5% of yearly consumption. It was designed to align energy production with immediate home demand.
8 - 425W solar panels
1 - 3.8kW inverter
8 - solar panel optimizers
⚠️ 25% or more of potential solar energy is wasted in this solar zero export system because it cannot store or send surplus energy to the grid.
⚠️ 25% or more of potential solar energy is wasted in this solar zero export system because it cannot store or send surplus energy to the grid.
Financial and Payback Comparison
This solar zero export system costs about 80% of the price of this net metered system, but the HRSP rebate does little to improve its payback period. It only offsets a small portion of mid-peak and peak hour usage and cannot store or export excess energy. Since solar panels generate less power during off-peak periods, such as mornings and evenings, this leaves the homeowner heavily reliant on the grid and therefore continuing to pay a significant portion of their current hydro bills in the long-term.
The key difference? The net metered system offers significantly greater savings over time, with a faster payback period a higher lifetime financial return for just $6,000 more in net cost. This is because the net metered system generates about 3.5 times more energy than the solar zero export system each year, maximizing savings and reducing hydro bills long-term.
Financial and Payback Comparison
This solar zero export system costs about 80% of the price of this net metered system, but the HRSP rebate does little to improve its payback period. It only offsets a small portion of mid-peak and peak hour usage and cannot store or export excess energy. Since solar panels generate less power during off-peak periods, such as mornings and evenings, this leaves the homeowner heavily reliant on the grid and therefore continuing to pay a significant portion of their current hydro bills in the long-term.
The key difference? The net metered system offers significantly greater savings over time, with a faster payback period a higher lifetime financial return for just $6,000 more in net cost. This is because the net metered system generates about 3.5 times more energy than the solar zero export system each year, maximizing savings and reducing hydro bills long-term.
CONSUMPTION 8,400 kWh/YEAR
Scenario 1
Net Metering
Solar Zero Export
Solar array size
6.8 kW
2.25 kW
Generated (1st yr)
7,622 kWh
2,230 kWh
HRS rebate
$0
$2,250
Payback period
11.7
21.8
25 year savings
$54,800
$17,300
CONSUMPTION 8,400 kWh/YEAR
Solar Scenario 3
Net Metering
Solar Zero Export
Solar array size
6.8 kW
2.25 kW
Generated (1st yr)
Year 1 generated
7,622 kWh
2,230 kWh
HRSP rebate
$0
$2,250
Payback period
11.7
11.7 years
21.8
21.8 years
25 Year savings
$54,800
$17,300
Conclusion about solar-only with the Home Renovation Savings Program
Solar Only (No Battery) Net Metering
A net metered solar system is designed to provide a large portion of a home’s annual energy consumption because it can be sized to overproduce during the daytime and in the summer months. This is only made possible by the ability to feed any excess energy produced to the grid in exchange for credits that can be used at nighttime and during winter months, when solar production is lower or non-existent.
Although net metered solar systems cost significantly more than solar zero export systems, the payback period is typically much shorter, and the lifetime savings much greater, due to the above-mentioned ability to produce much more energy, utilize the grid as a “battery”, and minimize energy waste. This means greater long-term financial benefits and a significant reduction in hydro bills. A net metered system typically recoups the initial investment within 9-12 years, and then the homeowner enjoys free energy each year thereafter, since the panels are guaranteed for 25 years, though they usually last longer.
Additionally, when a net metered system is exporting excess power to the grid it is reducing our reliance on fossil fuels, which is a significant environmental benefit.
Despite being able to take advantage of the new $5,000 rebate for a solar zero export solar system through the HRSP, installing a net metered solar system provides much greater long-term benefits to homeowners.
While an argument could be made that a solar zero export system is more appealing than a net metered system because it costs less upfront, the Canadian federal government’s 0% interest loan for solar provides affordable financing for a more costly net metered system, which enables homeowners to maximize their savings and return on investment. The Canada Greener Homes Loan provides 10-year interest-free financing up to $40,000 for Canadians interested in investing in energy-saving home upgrades. Regardless of whether a homeowner chooses to install a solar zero export or net metered solar system, the federal loan makes going solar more affordable and advantageous than ever before. Click here to learn more about the Canada Greener Homes Loan.
Solar Only (No Battery) Zero Export
Zero export systems are fundamentally limited, and they inherently waste energy. This is because the energy cannot be stored or sent to the grid. If the home’s energy demand is lower than the power being generated, the system will self regulate to only generate as much energy as there is demand for. Furthermore, due to low voltages in smaller systems, less energy is generated as the system becomes less efficient. And when the home needs power at night or during the winter, there’s no excess solar energy available to offset those costs.
A solar zero export system only reduces grid reliance when solar generation and home energy use align perfectly. It cannot store or export excess energy, meaning it provides little to no benefit during off-peak hours - early mornings and evenings, or winter months when the home still relies heavily on the grid. A solar zero export system is a lower priced solution at the time of purchase, and the Home Renovation Savings Program (HRSP) rebate helps to further reduce that cost, but the homeowner is still left with a significant amount of their energy coming from the grid, meaning they continue to pay hefty monthly hydro bills, and are susceptible to continually increasing electricity costs for the life of the solar system.
Due to the above limitations, a solar zero export solar system doesn’t provide a compelling payback period and lifetime savings, and adding more panels to a solar zero export system only increases wasted energy rather than improving performance and financial return.
Solar Only (No Battery) Net Metering
A net metered solar system is designed to provide a large portion of a home’s annual energy consumption because it can be sized to overproduce during the daytime and in the summer months. This is only made possible by the ability to feed any excess energy produced to the grid in exchange for credits that can be used at nighttime and during winter months, when solar production is lower or non-existent.
Although net metered solar systems cost significantly more than solar zero export systems, the payback period is typically much shorter, and the lifetime savings much greater, due to the above-mentioned ability to produce much more energy, utilize the grid as a “battery”, and minimize energy waste. This means greater long-term financial benefits and a significant reduction in hydro bills. A net metered system typically recoups the initial investment within 9-12 years, and then the homeowner enjoys free energy each year thereafter, since the panels are guaranteed for 25 years, though they usually last longer.
Additionally, when a net metered system is exporting excess power to the grid it is reducing our reliance on fossil fuels, which is a significant environmental benefit.
Despite being able to take advantage of the new $5,000 rebate for a solar zero export solar system through the HRSP, installing a net metered solar system provides much greater long-term benefits to homeowners.
While an argument could be made that a solar zero export system is more appealing than a net metered system because it costs less upfront, the Canadian federal government’s 0% interest loan for solar provides affordable financing for a more costly net metered system, which enables homeowners to maximize their savings and return on investment. The Canada Greener Homes Loan provides 10-year interest-free financing up to $40,000 for Canadians interested in investing in energy-saving home upgrades. Regardless of whether a homeowner chooses to install a solar zero export or net metered solar system, the federal loan makes going solar more affordable and advantageous than ever before. Click here to learn more about the Canada Greener Homes Loan.
Solar Only (No Battery) Zero Export
Zero export systems are fundamentally limited, and they inherently waste energy. This is because the energy cannot be stored or sent to the grid. If the home’s energy demand is lower than the power being generated, the system will self regulate to only generate as much energy as there is demand for. Furthermore, due to low voltages in smaller systems, less energy is generated as the system becomes less efficient. And when the home needs power at night or during the winter, there’s no excess solar energy available to offset those costs.
A solar zero export system only reduces grid reliance when solar generation and home energy use align perfectly. It cannot store or export excess energy, meaning it provides little to no benefit during off-peak hours - early mornings and evenings, or winter months when the home still relies heavily on the grid. A solar zero export system is a lower priced solution at the time of purchase, and the Home Renovation Savings Program (HRSP) rebate helps to further reduce that cost, but the homeowner is still left with a significant amount of their energy coming from the grid, meaning they continue to pay hefty monthly hydro bills, and are susceptible to continually increasing electricity costs for the life of the solar system.
Due to the above limitations, a solar zero export solar system doesn’t provide a compelling payback period and lifetime savings, and adding more panels to a solar zero export system only increases wasted energy rather than improving performance and financial return.
What you need to know about battery back-up systems for the new rebate program
While batteries are not a necessity for most homeowners, they can provide peace of mind for those concerned about grid reliability and energy costs. A battery back-up system ensures the home will have power during an energy outage. However, batteries add a significant expense to a system. The high cost of a battery system means the payback period is more than the 10-year warranty for the batteries.
Load Displacement
Homeowners can also use their battery systems to reduce their hydro bills by drawing energy from the grid and storing it at off-peak times, when electricity prices are lowest. The stored energy is then used during peak and mid-peak times, when electricity prices are higher. This generates savings by taking advantage of the price difference between the peak and off-peak rates. Storing energy during low rates and using it during high rates is called load displacement.
As of February 20, 2025, the difference between the highest and lowest hydro rates is $0.256/kWh. For a 10kWh battery, each charge and discharge cycle generates $2.56 of daily savings, using current hydro rates, which equates to $934.40 per year or $9,344 over the 10-year battery warranty lifetime.
This simplified analysis assumes that the battery completes a charge and discharge cycle all 365 days of the year, which doesn’t account for the lack of peak rates on weekends and holidays. If those days are factored in, the potential savings would be reduced by nearly a third. It also assumes that the battery charges and drains fully each day, which will only be the case if the homeowner starts every day at off-peak with zero charge in their battery, which may not be the case on days when the homeowner is on vacation or away from home.
In most cases the battery equipment, installation, and permitting costs exceed the potential savings from a battery over its lifetime. With the HRSP rebate these costs are only offset by the $5,000 rebate if the homeowner also purchases a solar system. This means that the upfront costs will be higher than purchasing a battery-only system.
To learn more about the benefits of batteries, whether paired with a solar system or not, click here.
While batteries are not a necessity for most homeowners, they can provide peace of mind for those concerned about grid reliability and energy costs. A battery back-up system ensures the home will have power during an energy outage. However, batteries add a significant expense to a system. The high cost of a battery system means the payback period is more than the 10-year warranty for the batteries.
Load Displacement
Homeowners can also use their battery systems to reduce their hydro bills by drawing energy from the grid and storing it at off-peak times, when electricity prices are lowest. The stored energy is then used during peak and mid-peak times, when electricity prices are higher. This generates savings by taking advantage of the price difference between the peak and off-peak rates. Storing energy during low rates and using it during high rates is called load displacement.
As of February 20, 2025, the difference between the highest and lowest hydro rates is $0.256/kWh. For a 10kWh battery, each charge and discharge cycle generates $2.56 of daily savings, using current hydro rates, which equates to $934.40 per year or $9,344 over the 10-year battery warranty lifetime.
This simplified analysis assumes that the battery completes a charge and discharge cycle all 365 days of the year, which doesn’t account for the lack of peak rates on weekends and holidays. If those days are factored in, the potential savings would be reduced by nearly a third. It also assumes that the battery charges and drains fully each day, which will only be the case if the homeowner starts every day at off-peak with zero charge in their battery, which may not be the case on days when the homeowner is on vacation or away from home.
In most cases the battery equipment, installation, and permitting costs exceed the potential savings from a battery over its lifetime. With the HRSP rebate these costs are only offset by the $5,000 rebate if the homeowner also purchases a solar system. This means that the upfront costs will be higher than purchasing a battery-only system.
To learn more about the benefits of batteries, whether paired with a solar system or not, click here.
What If We Install a Battery + Solar Zero Export System?
Adding a battery to a zero export solar system allows for some energy storage but introduces significant additional costs and technical challenges. To qualify for the HRSP battery rebate, the system must include at least four solar panels, in addition to the battery back-up. While the HRSP helps offset some costs, the financial and functional advantages pale in comparison to the advantages of net metering.
What If We Install a Battery + Solar Zero Export System?
Adding a battery to a zero export solar system allows for some energy storage but introduces significant additional costs and technical challenges. To qualify for the HRSP battery rebate, the system must include at least four solar panels, in addition to the battery back-up. While the HRSP helps offset some costs, the financial and functional advantages pale in comparison to the advantages of net metering.
Battery Back-up Case Studies
Scenario 4: Minimum Solar Installation to Qualify for the HRSP Battery Rebate
This case study examines the home modeled in Scenario 3, featuring moderate energy consumption of 8,400 kWh per year, including some high-draw appliances. This system resembles Fig 3B but with two fewer panels and slightly different equipment.
This system is significantly smaller than a net metered installation, supplying only 13.7% of annual energy consumption. The design incorporates the minimum solar production required for HRSP rebate eligibility and compares its performance to both a battery-only back-up system and a solar-only net metered system.
System Components:
4 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
With its compact size and substantial back-up capacity, this system minimizes energy waste, since any generated solar power can be stored in the battery. At peak solar output of 1.7 kW, recharging the battery solely from solar would take approximately eight hours, making it unlikely that solar alone would fully charge the battery.
This case study examines the home modeled in Scenario 3, featuring moderate energy consumption of 8,400 kWh per year, including some high-draw appliances. This system resembles Fig 3B but with two fewer panels and slightly different equipment.
This system is significantly smaller than a net metered installation, supplying only 13.7% of annual energy consumption. The design incorporates the minimum solar production required for HRSP rebate eligibility and compares its performance to both a battery-only back-up system and a solar-only net metered system.
System Components:
4 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
With its compact size and substantial back-up capacity, this system minimizes energy waste, since any generated solar power can be stored in the battery. At peak solar output of 1.7 kW, recharging the battery solely from solar would take approximately eight hours, making it unlikely that solar alone would fully charge the battery.
Financial and Payback Comparison
After applying the HRSP rebate the cost of this zero export system is close to the price of the net metered system it's being compared to. The rebate primarily offsets the cost of the battery, excluding expenses for solar panels, wiring, transfer switches, permitting, and labour. The battery warranty covers a 10-year lifespan, with an optimistic estimate of 15 years before replacement is required.
While the payback period for the zero export system with battery is 5.6 years shorter than that of a battery-only system, neither option comes close to the financial return offered by net metering. This small-scale zero export system does not generate sufficient energy to justify the investment.
Financial and Payback Comparison
After applying the HRSP rebate the cost of this zero export system is close to the price of the net metered system it's being compared to. The rebate primarily offsets the cost of the battery, excluding expenses for solar panels, wiring, transfer switches, permitting, and labour. The battery warranty covers a 10-year lifespan, with an optimistic estimate of 15 years before replacement is required.
While the payback period for the zero export system with battery is 5.6 years shorter than that of a battery-only system, neither option comes close to the financial return offered by net metering. This small-scale zero export system does not generate sufficient energy to justify the investment.
CONSUMPTION 8,400 kWh/YEAR
Battery
Scenario 4
Battery
Scenario 4
Net Metering
Net Metering
Battery Only
Battery Only
Zero Export
+ Battery
Zero Export
+ Battery
Solar array size
Solar array size
6.8 kW
6.8 kW
0 kW
0 kW
1.7 kW
1.7 kW
Generated (1st yr)
Year 1 kWh
generated
7,622 kWh
7,622 kWh
0 kWh
0 kWh
1770 kWh
1770 kWh
HRSP rebate
HRSP rebate
$0
$0
$0
$0
$6,700
$6,700
Payback period
Payback period
11.7 Years
11.7 years
11.7 Years
27.1 Years
21.8 years
27.1 Years
21.5 Years
21.8 years
21.5 Years
25 Year savings
25 Year savings
$54,800
$54,800
$-5,120(1,2)
$-5,120(1,2)
$9,910(1)
$9,910(1)
$9,910(1)
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
* Assuming best case scenario - 1 battery replacement after 15 years and savings from both optimal load displacement and generation
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
Scenario 5: Maximizing the HRSP Rebate for Battery
To claim the full $10,000 HRSP rebate - $5,000 for solar and $5,000 for battery - this scenario explores a system with 16 solar panels, ensuring minimal energy waste while maintaining compliance with the zero export requirements. The objective is to evaluate the impact of maximizing the rebate under optimal solar and battery conditions. This analysis is based on the home modeled in Scenario 1, with high energy consumption of 20,000 kWh per year. The corresponding solar system resembles Fig 1B but features eight panels on each roof face instead of five.
This system is significantly smaller than the net metered installation designed for Scenario 1, supplying just 32% of annual energy consumption for a high-usage household. The primary goal is to assess whether installing the minimum solar capacity required to maximize the HRSP rebate is a smart financial decision compared to a battery back-up system or a net metered system.
System Components:
10 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
Given the battery’s small storage capacity relative to the amount of solar energy generated, some solar energy is expected to be wasted, particularly in spring and summer when production exceeds storage capacity.
At peak solar output, the battery could be fully charged in approximately two hours, which makes it possible to charge the battery using solar alone. To optimize efficiency, it is assumed that battery capacity is prioritized for solar storage and that a smart panel is used to manage loads dynamically, aligning high-demand consumption with peak solar generation.
To claim the full $10,000 HRSP rebate - $5,000 for solar and $5,000 for battery - this scenario explores a system with 16 solar panels, ensuring minimal energy waste while maintaining compliance with the zero export requirements. The objective is to evaluate the impact of maximizing the rebate under optimal solar and battery conditions. This analysis is based on the home modeled in Scenario 1, with high energy consumption of 20,000 kWh per year. The corresponding solar system resembles Fig 1B but features eight panels on each roof face instead of five.
This system is significantly smaller than the net metered installation designed for Scenario 1, supplying just 32% of annual energy consumption for a high-usage household. The primary goal is to assess whether installing the minimum solar capacity required to maximize the HRSP rebate is a smart financial decision compared to a battery back-up system or a net metered system.
System Components:
10 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
Given the battery’s small storage capacity relative to the amount of solar energy generated, some solar energy is expected to be wasted, particularly in spring and summer when production exceeds storage capacity.
At peak solar output, the battery could be fully charged in approximately two hours, which makes it possible to charge the battery using solar alone. To optimize efficiency, it is assumed that battery capacity is prioritized for solar storage and that a smart panel is used to manage loads dynamically, aligning high-demand consumption with peak solar generation.
Financial and Payback Comparison
After applying the HRSP rebate the up front price of a zero export plus battery system is approximately $10K cheaper than the net metered system. The rebate primarily offsets the cost of the battery, excluding expenses for solar panels, wiring, transfer switches, permitting, and labour.
The battery warranty covers a 10-year lifespan, with an optimistic estimate of 15 years before replacement is required. However, the high upfront cost of the battery, combined with the expense of replacing it makes it less attractive than a net metered system with no rebate.
While the payback period for this zero export plus battery system is closer to that of a net metered system, it still does not match net metering in terms of return on investment.
Financial and Payback Comparison
After applying the HRSP rebate the up front price of a zero export plus battery system is approximately $10K cheaper than the net metered system. The rebate primarily offsets the cost of the battery, excluding expenses for solar panels, wiring, transfer switches, permitting, and labour.
The battery warranty covers a 10-year lifespan, with an optimistic estimate of 15 years before replacement is required. However, the high upfront cost of the battery, combined with the expense of replacing it makes it less attractive than a net metered system with no rebate.
While the payback period for this zero export plus battery system is closer to that of a net metered system, it still does not match net metering in terms of return on investment.
CONSUMPTION 20,000 kWh/YEAR
Battery
Scenario 5
Battery
Scenario 5
Net Metering
Net Metering
Battery Only
Battery Only
Zero Export
+ Battery
Zero Export
+ Battery
Solar array size
Solar array size
18.7 kW
18.7 kW
0 kW
0 kW
6.8 kW
6.8 kW
Generated (1st yr)
Year 1 generated
Year 1 kWh
generated
19,200 kWh
19,200 kWh
0 kWh
0 kWh
7,622 kWh
7,622 kWh
HRSP rebate
HRSP rebate
$0
$0
$0
$0
$10,000
$10,000
Payback period
Payback period
10.5 Years
11.7 years
10.5 Years
27.1 Years
21.8 years
27.1 Years
13.5 Years
21.8 years
13.5 Years
25 Year savings
25 Year savings
$134,750
$134,750
-$5,120(1,2)
-$5,120(1,2)
$27,500(1)
$27,500(1)
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
Scenario 6: Adding a Battery to the Solar Zero Export System in Solar Scenario 1
This system attempts to get a healthy return on the HRSP rebate by balancing solar generation with a battery. However, even with a battery, this system provides only 30% of a home's annual energy needs - far less than a net metered system. As a result, energy independence is limited, and cost savings are minimal.
System Components:
10 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
A comparison of energy output between the net metered system (Graph 6A) and zero export system with a battery (Graph 6B) shows a significant difference in performance. Battery storage underperforms from March to September, resulting in minimal to no financial benefit from load displacement during these months. Solar production will frequently exceed storage capacity on a daily basis, and without careful energy management, the battery will not perform to the best of its ability. Rather than adding another battery, which would significantly increase costs, this scenario maintains a focus on cost efficiency. According to this analysis, from May to August, approximately 5% of total solar production will be wasted due to storage limitations. Scenario 7 will further explore the impact of additional battery storage. The battery will underperform from March to Sepember so there will be little to no savings from load displacement during those months because the batter is already charged during ultra low usage times.
This system attempts to get a healthy return on the HRSP rebate by balancing solar generation with a battery. However, even with a battery, this system provides only 30% of a home's annual energy needs - far less than a net metered system. As a result, energy independence is limited, and cost savings are minimal.
System Components:
10 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
A comparison of energy output between the net metered system (Graph 6A) and zero export system with a battery (Graph 6B) shows a significant difference in performance. Battery storage underperforms from March to September, resulting in minimal to no financial benefit from load displacement during these months. Solar production will frequently exceed storage capacity on a daily basis, and without careful energy management, the battery will not perform to the best of its ability. Rather than adding another battery, which would significantly increase costs, this scenario maintains a focus on cost efficiency. According to this analysis, from May to August, approximately 5% of total solar production will be wasted due to storage limitations. Scenario 7 will further explore the impact of additional battery storage. The battery will underperform from March to Sepember so there will be little to no savings from load displacement during those months because the batter is already charged during ultra low usage times.
Financial and Payback Comparison
The net metered system generates significantly greater savings compared to the zero export system with battery storage. Despite qualifying for $9,300 in HRSP rebates, the payback period for this net metered system is 10.5 years, nearly half that of the zero export plus battery system.
This zero export system with battery is comparable to the battery-only system in terms of cost, however it still falls short when compared to net metering. While the battery helps reduce wasted solar energy, it does not make a zero export system competitive with net metering when it comes to long-term savings. For homeowners focused on financial return, a net metering system remains the better option.
Financial and Payback Comparison
The net metered system generates significantly greater savings compared to the zero export system with battery storage. Despite qualifying for $9,300 in HRSP rebates, the payback period for this net metered system is 10.5 years, nearly half that of the zero export plus battery system.
This zero export system with battery is comparable to the battery-only system in terms of cost, however it still falls short when compared to net metering. While the battery helps reduce wasted solar energy, it does not make a zero export system competitive with net metering when it comes to long-term savings. For homeowners focused on financial return, a net metering system remains the better option.
CONSUMPTION 20,000 kWh/YEAR
Battery
Scenario 6
Battery
Scenario 6
Net Metering
Net Metering
Battery Only
Battery Only
Zero Export
+ Battery
Zero Export
+ Battery
Solar array size
Solar array size
18.7 kW
18.7 kW
0 kW
0 kW
4.25 kW
4.25 kW
Generated (1st yr)
Year 1 generated
Year 1 kWh
generated
19,200 kWh
19,200 kWh
0 kWh
0 kWh
6,680 kWh
6,680 kWh
HRSP rebate
HRSP rebate
$0
$0
$0
$0
$9,300
$9,300
Payback period
Payback period
10.5 Years
11.7 years
10.5 Years
27.1 Years
21.8 years
27.1 Years
19.7 Years
21.8 years
19.7 Years
25 Year savings
25 Year savings
$134,750
$134,750
$-5,120(1,2)
$-5,120(1,2)
$20,760(1)
$20,760(1)
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
Scenario 7: Large Battery System to Match Net Metering Potential
This scenario examines the battery capacity required to match the storage benefits provided by the grid through net metering in Scenario 1. To achieve equivalent energy production and cost savings, a zero export system would require the same number of solar panels as a net metered system, along with approximately 65 kWh of battery storage, equivalent to five batteries.
System Components:
44 - 425W solar panels
1 - 11.4kW inverter
5 - 13.5kWh storage capacity batteries
No solar panel optimizers
Graph 7 illustrates the impact of adding enough battery storage to capture as much excess energy as possible. However, in this scenario, surplus solar energy is still wasted, regardless of storage availability. The primary limitation of this scenario is centred around the battery charge cycle. Because there is not enough demand to fully drain the battery between charges the system inherently wastes energy.
Additionally, this system does not eliminate reliance on the grid. During winter months, when solar generation is insufficient to meet household energy demand, energy from the grid is still needed, resulting in ongoing hydro bills. In Ontario’s snowy climate, seasonal variations make complete energy independence unattainable, even with extensive battery storage.
This scenario examines the battery capacity required to match the storage benefits provided by the grid through net metering in Scenario 1. To achieve equivalent energy production and cost savings, a zero export system would require the same number of solar panels as a net metered system, along with approximately 65 kWh of battery storage, equivalent to five batteries.
System Components:
44 - 425W solar panels
1 - 11.4kW inverter
5 - 13.5kWh storage capacity batteries
No solar panel optimizers
Graph 7 illustrates the impact of adding enough battery storage to capture as much excess energy as possible. However, in this scenario, surplus solar energy is still wasted, regardless of storage availability. The primary limitation of this scenario is centred around the battery charge cycle. Because there is not enough demand to fully drain the battery between charges the system inherently wastes energy.
Additionally, this system does not eliminate reliance on the grid. During winter months, when solar generation is insufficient to meet household energy demand, energy from the grid is still needed, resulting in ongoing hydro bills. In Ontario’s snowy climate, seasonal variations make complete energy independence unattainable, even with extensive battery storage.
Financial and Payback Comparison
This scenario provides no financial benefit. The batteries will not pay for themselves within their lifespan, and there isn’t sufficient savings from load displacement to justify the upfront system cost. Adding more batteries to this zero export system fails to create a meaningful financial return, as it performs worse than a partial battery back-up system in terms of the payback period.
Beyond the high upfront cost of batteries, this approach introduces additional challenges, including space constraints, replacement costs, and installation expenses. The financial drawbacks far outweigh any potential advantages, making large-scale residential battery storage an impractical investment. Additionally, electrical regulations prohibit the installation of such large-scale storage within a residential home.
This scenario demonstrates the immense value of net metering and what it would take to attempt to recreate it through a large scale battery system.
Financial and Payback Comparison
This scenario provides no financial benefit. The batteries will not pay for themselves within their lifespan, and there isn’t sufficient savings from load displacement to justify the upfront system cost. Adding more batteries to this zero export system fails to create a meaningful financial return, as it performs worse than a partial battery back-up system in terms of the payback period.
Beyond the high upfront cost of batteries, this approach introduces additional challenges, including space constraints, replacement costs, and installation expenses. The financial drawbacks far outweigh any potential advantages, making large-scale residential battery storage an impractical investment. Additionally, electrical regulations prohibit the installation of such large-scale storage within a residential home.
This scenario demonstrates the immense value of net metering and what it would take to attempt to recreate it through a large scale battery system.
CONSUMPTION 20,000 kWh/YEAR
Battery
Scenario 7
Battery
Scenario 7
Net Metering
Net Metering
Battery Only
Battery Only
Zero Export
+ Battery
Zero Export
+ Battery
Solar array size
Solar array size
18.7 kW
18.7 kW
0 kW
0 kW
18.7 kW
18.7 kW
Generated (1st yr)
Year 1 generated
Year 1 kWh
generated
19,200 kWh
19,200 kWh
0 kWh
0 kWh
15,775 kWh(3)
15,775 kWh(3)
HRSP rebate
HRSP rebate
$0
$0
$0
$0
$10,000
$10,000
Payback period
Payback period
10.5 Years
11.7 years
10.5 Years
27.1 Years
21.8 years
27.1 Years
28.9 Years
21.8 years
28.9 Years
25 Year savings
25 Year savings
$134,750
$134,750
$-5,120(1,2)
$-5,120(1,2)
$-36,440(1,2)
$-36,440(1,2)
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
(3) Even though the size of the zero export system is the same as the net metered system, less energy is generated during the summer due to battery storage limitations.
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
(3) Even though the size of the zero export system is the same as the net metered system, less energy is generated during the summer due to battery storage limitations.
Scenario 8: Adding a Battery to a Solar Zero Export System in Solar Scenario 3
This scenario evaluates the impact of adding a battery to the zero export system for a lower-consumption household, as found in Scenario 3.
System Components:
10 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
This system is significantly smaller than the net metered system designed for Scenario 3, supplying 52% of the home’s annual energy consumption. The goal in this scenario is to qualify for the maximum HRSP battery rebate with the smallest possible solar installation while comparing the results to both a battery-only setup and a net metered system.
A key advantage of this zero export plus battery system is that the battery is well-matched to the solar generation, minimizing wasted energy. However, despite this efficiency, it falls short of net metering in terms of long-term financial returns and overall energy production.
This scenario evaluates the impact of adding a battery to the zero export system for a lower-consumption household, as found in Scenario 3.
System Components:
10 - 425W solar panels
1 - 11.4kW inverter
1 - 13.5kWh storage capacity battery
No solar panel optimizers
This system is significantly smaller than the net metered system designed for Scenario 3, supplying 52% of the home’s annual energy consumption. The goal in this scenario is to qualify for the maximum HRSP battery rebate with the smallest possible solar installation while comparing the results to both a battery-only setup and a net metered system.
A key advantage of this zero export plus battery system is that the battery is well-matched to the solar generation, minimizing wasted energy. However, despite this efficiency, it falls short of net metering in terms of long-term financial returns and overall energy production.
Financial and Payback Comparison
This net metered system generates significantly more energy than the zero export system with battery. This zero export system qualifies for $9,250 in HRSP rebates, but the financial return remains weak. The payback period for the net metered system is 11.7 years, compared to 22 years for the zero export system with battery. The need for battery replacement in year 15 further extends the payback period, reducing financial return.
Financial and Payback Comparison
This net metered system generates significantly more energy than the zero export system with battery. This zero export system qualifies for $9,250 in HRSP rebates, but the financial return remains weak. The payback period for the net metered system is 11.7 years, compared to 22 years for the zero export system with battery. The need for battery replacement in year 15 further extends the payback period, reducing financial return.
CONSUMPTION 8,400 kWh/YEAR
Battery
Scenario 8
Battery
Scenario 8
Net Metering
Net Metering
Battery Only
Battery Only
Zero Export
+ Battery
Zero Export
+ Battery
Solar array size
Solar array size
6.8 kW
6.8 kW
0 kW
0 kW
3.4 kW
3.4 kW
Generated (1st yr)
Year 1 generated
Year 1 kWh
generated
7,622 kWh
7,622 kWh
0 kWh
0 kWh
3,430 kWh(3)
3,430 kWh(3)
HRSP rebate
HRSP rebate
$0
$0
$0
$0
$8,400
$8,400
Payback period
Payback period
11.7 Years
11.7 years
11.7 Years
27.1 Years
21.8 years
27.1 Years
21.8 Years
21.8 years
21.8 Years
25 Year savings
25 Year savings
$54,800
$54,800
$-5,120(1,2)
$-5,120(1,2)
$9,110(1)
$9,110(1)
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
(3) Even though the size of the zero export system is the same as the net metered system, less energy is generated during the summer due to battery storage limitations.
(1) Assumes best case scenario, ie. the battery does not need to be replaced for 15 years, and savings are obtained from optimal load displacement and solar generation.
(2) Because the payback period is longer than the 25-year savings period, the total savings is negative.
(3) Even though the size of the zero export system is the same as the net metered system, less energy is generated during the summer due to battery storage limitations.
Conclusion about battery back-up and the Home Renovation Savings Program
Homeowners looking for battery backup should note that the HRSP rebate does not apply to battery-only systems. However, if the customer is willing to install a small solar array, the HRSP rebate will offset some or all of the additional cost of adding solar, depending upon the size of the solar array. This makes installing a zero export solar system plus battery a viable option for those who prioritize energy storage over financial return.
As demonstrated above, the key advantage of net metering is the grid’s role as flexible storage, enabling homeowners to use energy without worrying about excess generation or storage limitations of a battery. By offering credits to offset energy pulled from the grid during low solar generation periods, net metering eliminates the need for batteries, making it the most cost-effective solar solution in Ontario.
However, if maintaining power during a grid outage is of the utmost importance to a homeowner, a battery back-up system is essential. Even with a solar array installed, their home will not have power during an outage unless they have a battery. This is primarily for safety reasons, as grid-tied solar systems are designed to shut down during outages to protect utility workers from electrical current while they work on restoring power.
Homeowners looking for battery backup should note that the HRSP rebate does not apply to battery-only systems. However, if the customer is willing to install a small solar array, the HRSP rebate will offset some or all of the additional cost of adding solar, depending upon the size of the solar array. This makes installing a zero export solar system plus battery a viable option for those who prioritize energy storage over financial return.
As demonstrated above, the key advantage of net metering is the grid’s role as flexible storage, enabling homeowners to use energy without worrying about excess generation or storage limitations of a battery. By offering credits to offset energy pulled from the grid during low solar generation periods, net metering eliminates the need for batteries, making it the most cost-effective solar solution in Ontario.
However, if maintaining power during a grid outage is of the utmost importance to a homeowner, a battery back-up system is essential. Even with a solar array installed, their home will not have power during an outage unless they have a battery. This is primarily for safety reasons, as grid-tied solar systems are designed to shut down during outages to protect utility workers from electrical current while they work on restoring power.
Solar 101: Everything you Need to Know
Residential Systems
What components are needed for a residential system?
Net Metering
Learn how net metering works and how it can save up to 90% from your energy bill.
Maintenance
Service
What level of service or maintenance is required with solar installations?
Environmental Impact
Ecological Impact
What is the impact of solar panels on the environment.
Commercial Systems
What to expect when installing a commercial system.
Agricultural Systems
What do you need to consider before choosing a solar company for the farm?
Battery Backup
Should I get a solar battery for my home? Decide if the battery option is right for you.
Frequently Asked Questions
The most frequently asked questions you may not have thought of yet.
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© 2025 All Right Reserved by Guelph Solar
Guelph Solar Supported Links