Net Metering vs. Feed-in Tariffs: What Solar Owners Should Know

If you've been researching solar for a while, you may have come across the terms net metering and feed-in tariff.

They sound similar.

They are not the same thing.

Understanding the difference is important when reading older Ontario solar information.

What Is Net Metering?

Net metering allows an eligible renewable-energy system to generate electricity for the property while sending excess generation to the electricity grid.

The electricity produced by the system can first serve the property's own consumption.

When generation exceeds the property's immediate demand, eligible excess electricity can flow to the grid.

The customer receives credits that can be used to offset eligible future electricity consumption.

The Ontario net-metering framework is therefore primarily about offsetting the customer's electricity use.

What Was a Feed-in Tariff?

Ontario's Feed-in Tariff, commonly called FIT, was a different model.

Under FIT programs, electricity generated from qualifying renewable-energy projects was purchased through long-term contracts at specified rates.

The focus was on producing electricity and selling it into the electricity system rather than simply offsetting the customer's own consumption.

Ontario's earlier FIT and microFIT programs played a major role in the development of the province's distributed solar industry.

However, those programs should not be confused with today's residential solar options.

Why the Difference Matters Today

Older solar articles can make Ontario's current solar market confusing.

Someone may read about:

• FIT

• microFIT

• Net Metering

• Solar Rebates

• Green Energy Programs

and assume they are all still operating under the same rules.

They aren't.

Today's solar project needs to be evaluated against the programs and connection rules that actually apply when the project is developed.

Net Metering Today

Net metering remains a mechanism for eligible customers to offset electricity consumption using renewable generation.

The basic concept is:

Generate → Use → Export Excess → Receive Credits

The grid remains part of the energy strategy.

Today's Load-Displacement Model

Ontario's current Home Renovation Savings solar and battery incentive introduces another pathway for eligible homeowners.

Under that program, solar PV must be designed for load displacement.

Net metering is not permitted for projects receiving the program's solar/storage incentive.

The strategy becomes:

Generate → Use On-Site → Store/Manage Excess

This is fundamentally different from the older FIT model.

FIT vs. NEM vs. BTM

The terms describe different energy and compensation models.

Why You Shouldn't Design a Solar System Around an Old Article

Solar programs change.

Utility connection requirements change.

Incentives change.

Equipment changes.

Battery technology changes.

A project that made financial sense under a previous Ontario program may not have the same economics today.

That's why current program verification should happen before a solar contract is finalized.

What Should Solar Owners Focus On Now?

Instead of asking:

"Can I get the same solar program people had years ago?"

Ask:

"What solar strategy makes sense for my property today?"

That may involve:

• Net metering

• Behind-the-meter solar

• Battery storage

• Home Renovation Savings incentives

• Commercial energy incentives

• Energy management

• EV charging

• Electrical upgrades

The right strategy depends on the property.

Solar Has Changed. Your Strategy Should Too.

Sunvibe helps homeowners and businesses evaluate solar, storage, grid connection, incentives, and energy-management options based on today's Ontario market.

SUNVIBE® — ENERGY FOR THE LONG RUN.