Month: March 2025

Author: Cameron McCullough, P.Eng

The standard for installing solar for customers in Ontario for the last decade has largely been net-metering. The introduction of incentives for load displacement projects in Ontario is encouraging other options to be evaluated when deciding what is best for your home or business. Each option has their own pros and cons that are worth knowing ahead of going forward with either option, to better understand the differences some of these points are listed below: 

Net-metering 

Net-metering is a regulation in Ontario supported by Local Distribution Companies that allow customers to gain credits from generating their own renewable electricity to offset future bills, with credits lasting up to 12 months. This is beneficial for solar as systems generate more electricity during the day than would typically be consumed, as well as excess credits generated during the longer days in the summer compensating for the shorter days during the winter months.  

Benefits: 

• Allows for optimal system sizing; offsetting full building load, using credits for excess generation allows for systems to be sized on the annual energy instead of the peak load 

• Easier implementation; no additional equipment is required to monitor existing building load and curtail the inverter output  

Load Displacement 

Load displacement means that the energy produced by the (Distributed Energy Resource) DER is only used for self-consumption. Generation should be curtailed to match the facility load, with no excess generation going to the grid. These systems can recover excess generation through battery storage in the facility provided no energy is exported. 

Benefits: 

• Can avoid expensive upgrades; when connecting, existing services limits can be set on the system to avoid expensive upgrades and stay under equipment limits 

• Less burden for connecting to the grid; load displacement projects are considered “non-exporting” DERs, these systems have less impact on the grid infrastructure and in some cases can connect when net-metering systems are restricted 

• Allows for use of the Solar Photovoltaic Distributive Energy Resources Initiative, which can recoup up to 50% of eligible project costs (reference in link below) 

Each option has its own benefits, it’s important to evaluate which will work best based on the building infrastructure, grid capacity, and your facility goals. Reach out to Compass Energy Consulting to help you evaluate which option works best for you and assist in engineering to get your system online! 

SAVE ON ENERGY Incentive Resource: 

https://saveonenergy.ca/en/For-Business-and-Industry/Programs-and-incentives/Retrofit-Program