What happens to net metering credits
How solar credits appear on your bill, Ontario's 12-month rollover, what happens to unused credits in each province and how to size to avoid waste.
5 min read · Updated 2026-10-30
Net metering credits are the bridge between sunny summers and dark winters. Your panels earn credits when they make more than you use, and those credits pay for power you buy later. Knowing how they appear on your bill, and when they expire, helps you size a system that wastes nothing.
How credits appear on an Ontario bill
Net metered bills have an extra generation section. Hydro Ottawa's sample bill, for example, shows:
- Credits earned: the value of the power you sent to the grid this period.
- Credits applied: the amount used against this period's charges.
- Credits carried forward: the balance from earlier months.
- Credit balance: what's left after this period.
Credits are calculated using your price plan (Tiered, Time-of-Use or Ultra-Low Overnight), so the value of an exported kWh depends on when you export it. Hydro One explains that credits offset variable charges, such as the electricity charge and per-kWh delivery and regulatory charges. Fixed charges, such as the monthly customer service charge, aren't offset. That's why a net metered bill rarely drops to zero.
The yearly cycle
In a typical year, credits build from spring through early fall and get drawn down from late fall through winter.
Here's an illustration using our Toronto sample system, which makes about 7,940 kWh a year, paired with a home that uses a steady 650 kWh every month (7,800 kWh a year):
| Period | Solar vs use | Credit change |
|---|---|---|
| April to September | Solar makes more than the home uses | About 2,220 kWh banked |
| October to March | The home uses more than solar makes | About 2,080 kWh drawn |
| End of year | Small surplus | About 140 kWh left over |
Real homes use more in winter if they heat with electricity, which draws credits down faster. The pattern is the same.
Ontario: 12 months, then written off
In Ontario, credits carry forward for up to 12 months. Under the provincial net metering regulation, a balance carried longer than that is written off. There is no cash payment for leftover credits.
Because the rollover is rolling, summer credits easily reach the following winter. Credits only expire if your system makes more over a year than you use. In the example above, about 140 kWh a year would eventually be lost, a small amount. A system twice as large would waste thousands of kWh.
If your system takes Ontario's HRSP rebate, it can't use net metering, so there are no credits to bank. See net metering vs the HRSP rebate.
Other provinces
| Province | What happens to unused credits |
|---|---|
| Quebec | The kWh bank resets every 24 months. Any positive balance is applied to your bill at Hydro-Québec's average supply cost |
| New Brunswick | Credits reset to zero every March 31. NB Power doesn't buy excess energy |
| Nova Scotia | Credits bank for up to 12 months. On your anniversary date, the balance is paid at your retail energy rate |
| Prince Edward Island | Credits carry forward until October 31 of the following calendar year, oldest first, and have no cash value |
| Newfoundland and Labrador | Newfoundland Power settles leftover credits once a year at the rate it pays NL Hydro for power |
| Alberta | Small micro-generators get dollar credits at their retail energy rate. Retailers must pay for unused credits once a year |
| Saskatchewan | Dollar credits at 7.5¢ per kWh carry forward for the life of the account at that address, with no cash payout |
| British Columbia | New customers since July 1, 2026 get dollar credits at 10¢ per kWh against energy charges |
| Manitoba | Excess energy earns a dollar credit on the monthly bill at Manitoba Hydro's excess energy price |
Where leftovers are paid out, the payment is often at a lower rate than you pay for power, so it still pays to size close to your use. For the full rules, see net metering in Canada.
Sizing to avoid wasted credits
- Start with 12 months of usage. Add up your bills or download your data. See reading your electricity bill.
- Aim at or a little below your yearly use. Divide your yearly kWh by your city's yield per kW. See how many solar panels you need.
- Plan for known changes. An EV or heat pump in the next few years adds use, which can justify a bigger system.
- Allow for future efficiency. New windows, insulation or LED lighting lower use, which can leave a system oversized.
- Check the timing rules. In Ontario, a system that starts producing in spring builds credits before winter. Fixed reset dates elsewhere, such as March 31 in New Brunswick, work similarly.
Keep an eye on your balance
Look at your credit balance a few times a year. If it keeps growing year after year, your system is larger than your use, and credits are probably expiring. Shifting some use, such as adding an EV, can put those credits to work. See solar monitoring and what to watch.
Next step
See a system sized to your actual use: check your roof.
Common questions
- Do net metering credits expire in Ontario?
- Yes. Credits carry forward for up to 12 months, and any balance carried longer than that is written off. There is no cash payment for unused credits.
- Can I get paid for unused solar credits?
- In Ontario, New Brunswick and PEI, no. Nova Scotia pays leftover credits on your anniversary date, Newfoundland Power settles them once a year and Alberta retailers must pay for unused credits annually.
- Why is my bill not zero if I have credits?
- Credits only offset per-kWh charges. Fixed monthly charges, such as the customer service charge, stay on every bill.
- How do I avoid losing credits?
- Size your system at or a little below your yearly electricity use, based on 12 months of bills. If your balance keeps growing each year, adding use such as an EV can put the extra credits to work.
Sources
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