Net metering is the mechanism that makes residential solar financially viable in Alberta. Without it, you'd waste most of your daytime solar production. With it, your system can eliminate your electricity bill entirely.
The basics
When your solar panels produce more electricity than your home is using at any given moment, the surplus flows to the grid. Your bi-directional meter tracks electricity flowing in both directions. At the end of each billing period, your retailer calculates:
Electricity imported from grid − electricity exported to grid = net consumption
If you exported more than you imported, you receive a credit that rolls forward to the next billing period. If you imported more, you pay for the net amount. Over 12 months, a properly sized system results in net-zero consumption.
Alberta's micro-generation regulation
Net metering in Alberta is governed by the Micro-Generation Regulation under the Electric Utilities Act. Key rules:
System size limit: Up to 5 MW for residential micro-generation, but practically, residential systems are under 15 kW. Your system must be sized to offset your annual consumption — not to be a power plant.
Credit rate: You receive credits at the retail electricity rate — the same rate you pay for imported electricity. This is a 1:1 credit, which is the best possible structure for homeowners.
Credit rollover: Unused credits roll forward month to month. This is critical for winter — your summer surplus credits offset your winter shortfall.
Annual settlement: At the end of your annual billing cycle, any remaining credits are typically paid out at a rate determined by your retailer, or they may reset. Check your specific retailer's policy.
How it works with your retailer
Alberta is a deregulated electricity market. You can choose any retailer — EPCOR Energy (default), Encor, Direct Energy, Just Energy, and others. Net metering is available through all of them. Your choice of retailer doesn't affect your ability to net meter.
What does change by retailer is your rate structure. Some offer fixed rates, others variable. The rate you pay for imported electricity is the same rate you receive as credit for exported electricity.
Important: Your distribution company (EPCOR in Edmonton, FortisAlberta outside Edmonton) is separate from your retailer. The distribution company owns the wires and meters. They install your bi-directional meter as part of the solar interconnection process — we coordinate this during installation.
What stays on your bill
Net metering eliminates the energy charge on your bill, but some charges remain:
Distribution charges — fees for using the grid infrastructure. These are based on consumption and can be reduced but not fully eliminated by solar.
Transmission charges — similar to distribution, covers the high-voltage transmission system.
Rate riders and admin fees — small fixed charges that apply regardless of consumption.
In practice, a homeowner who achieves net-zero energy consumption through solar still pays roughly $30–$60/month in fixed grid charges. When we say "$0 electricity bill," we mean $0 energy cost — the distribution and transmission fees remain but are minimal compared to the $200–$400/month energy charges that solar eliminates.
The application process
To participate in net metering, you need an approved micro-generation application. Here's the process:
1. We design your system and submit a micro-generation application to your distribution company (EPCOR or FortisAlberta).
2. The distribution company reviews and approves the application.
3. We install your system.
4. The distribution company installs a bi-directional meter.
5. Your system is commissioned and begins generating credits.
We handle steps 1 through 3 as part of every installation. The meter swap typically happens within 2–4 weeks of installation completion.