Net Metering in Alberta: How It Works
- Tom Sherwood
- Jan 3
- 4 min read
Quick Answer
Here's what Alberta homeowners need to know about net metering:
Net metering lets you earn credits for excess solar energy. When your panels produce more than you use, the excess flows to the grid and you receive bill credits.
It's governed by Alberta's Micro-Generation Regulation. This provincial law ensures all grid-connected solar systems can participate.
Available for systems up to 1 MW. Residential systems typically range from 5-15 kW, well under this limit.
Credit rates depend on your electricity retailer. Different retailers offer different rates for exported energy.
Your installer handles the setup. Firefly Solar manages the Microgeneration Agreement and utility paperwork for you.
What Is Net Metering?
Net metering is a billing arrangement that allows you to send excess solar electricity to the grid and receive credits in return. Think of the grid as a battery: when you produce more than you need, you "store" it on the grid. When you need more than you're producing, you draw it back.
Without net metering, excess solar production would be wasted. With it, every kilowatt-hour your panels produce has value, whether you use it immediately or not.
How Net Metering Works in Alberta
The Micro-Generation Regulation
Alberta's Micro-Generation Regulation establishes the rules for small-scale renewable energy production. Under this regulation, any Alberta homeowner with a grid-connected solar system can become a "micro-generator" and participate in net metering.
Step by Step: How It Works
Your panels generate electricity. This power flows first to your home to meet immediate needs.
Excess flows to the grid. When production exceeds consumption (common on sunny afternoons), surplus electricity is exported.
Your meter tracks both directions. A bidirectional meter records electricity flowing in and out of your home.
Credits appear on your bill. Your electricity retailer credits you for exported energy, offsetting charges for electricity you import.
Monthly reconciliation. Each billing period, your imports and exports are netted against each other.
Credit Rates
The rate you receive for exported electricity depends on your electricity retailer. Some key points:
Rates vary by retailer. Different companies offer different credit rates. It's worth comparing.
Credits offset future charges. If you generate more than you use in a month, credits roll forward.
Annual settlement. Most retailers settle credits annually, with rules varying on unused credits.
What You Need for Net Metering
A grid-connected solar system. Off-grid systems don't qualify since they're not connected to the utility.
A Micro-generation Agreement. Your installer files this with your wire service provider (like ENMAX or EPCOR).
A bidirectional meter. Your utility typically provides this at no additional cost.
Proper electrical permits and inspection. Required for any solar installation.
At Firefly Solar, we handle all of this paperwork and coordination for you. The Microgeneration Agreement, utility notifications, permits, and inspections are all part of our installation process.
Net Metering vs. Feed-In Tariffs
You may have heard of feed-in tariffs in other provinces. Here's the difference:
Net metering (Alberta): Credits offset your consumption. The goal is to reduce or eliminate your bill.
Feed-in tariffs (some other provinces): You sell all electricity at a fixed rate, separate from your consumption.
Alberta uses net metering, which works well for residential systems designed to offset your own usage.
Maximizing Value from Net Metering
Right-size your system. Systems designed to offset 80-100% of annual consumption typically provide the best economics.
Use electricity during peak production. Running dishwashers, laundry, and EV charging during sunny hours uses your own solar rather than exporting.
Compare retailer rates. If switching retailers is an option, compare their net metering credit rates.
Consider future needs. Planning an EV or heat pump? Size your system for future consumption.
Ready to Start Generating?
Right-size your system. Systems designed to offset 80-100% of annual consumption typically provide the best economics.
Use electricity during peak production. Running dishwashers, laundry, and EV charging during sunny hours uses your own solar rather than exporting.
Compare retailer rates. If switching retailers is an option, compare their net metering credit rates.
Consider future needs. Planning an EV or heat pump? Size your system for future consumption.
Ready to Start Generating?
Net metering makes solar economics work in Alberta by ensuring all your production has value. At Firefly Solar, we handle all the paperwork and coordination with your utility.
FAQ: Net Metering in Alberta
How much will I get paid for excess electricity?
Credit rates depend on your electricity retailer. You receive credits on your bill rather than direct payment. These credits offset future electricity charges.
Can I sell electricity back to the grid?
Under net metering, you receive credits rather than cash. However, in Alberta's deregulated market, some retailers may offer cash-out options for credits. Check with your retailer.
What happens to unused credits?
Most retailers settle credits annually. Rules for unused credits vary. Some roll them over, some pay out, and some forfeit them. Check your retailer's terms.
Do I need special equipment for net metering?
Your utility company will provide a bidirectional meter, typically at no additional cost. Your solar system needs a grid-tied inverter, which is standard for all grid-connected installations.
