Solar panels on a sunny July afternoon often produce more than a home consumes. That surplus flows to the grid. What you receive for those exported kilowatt-hours — the export rate — is one of the most misunderstood numbers in residential solar economics across Canada.
Unlike self-consumed power worth full retail on your bill, exports are credited at utility-specific rates that may be generous, minimal, or somewhere between. Ontario, Alberta, and BC each handle this differently.
Self-consumption versus export value
Self-consumption: Each kWh you use onsite avoids buying at retail — energy charge plus embedded delivery savings in many cases.
Export: Surplus kWh credited or paid at export rate, which is often below retail and sometimes near wholesale.
A system exporting 40% of production at half retail value earns far less than models assuming 100% retail credit.
Ontario net metering credits
Ontario does not pay cash for exports. Net metering applies credits against future imports within annual true-up rules administered by local distribution companies. Credit rates align with your rate class — TOU, tiered, or ultra-low overnight plans affect the effective value of exports versus imports.
Critical nuance: credits that expire at annual true-up are worth zero. Chronic overproduction is a planning error, not a revenue stream.
On TOU, exporting during mid-peak may credit differently than importing on-peak later — depending on utility tariff language. Shift load to solar hours to minimize export dependence.
Alberta micro-generation export rates
Alberta's competitive retail market separates generation from delivery. Micro-generators register systems up to size limits and receive credits through their retailer contract — not a single provincial feed-in tariff.
Export rates vary by retailer and product:
- Some offer near-retail credit for exported kWh
- Others credit at pool price or fixed lower rates
- Solar Club-style products may enhance seasonal export value
Shopping retailers annually is rational for Alberta solar owners — a 2 ¢/kWh export difference equals $180/year on 9,000 kWh exported.
BC Hydro net metering
BC Hydro credits surplus at rates specified in net metering program rules — typically structured as bill credits rather than cheques. Step 2 tier pricing means self-consumption during high-tier months is especially valuable.
Coastal BC production peaks may not align with winter import peaks; annual netting smooths seasonality but expired credits remain a risk if oversized.
Quebec and Atlantic brief note
Hydro-Québec net metering credits exports against consumption within program rules — low retail rates compress absolute dollar value. Atlantic utilities each administer net metering with distinct tariff schedules; Nova Scotia Power customers should read current credit classification on the utility site.
Why export rates stay below retail
Utilities recover fixed grid costs — wires, transformers, reliability — through rates partly decoupled from energy commodity. Exporting solar uses the grid as storage; regulators often limit export compensation to avoid cross-subsidy debates. Distributed generation also avoids transmission charges utilities embedded in retail pricing.
Policy tension continues: homeowners want fair export value; utilities argue grid cost recovery. Ontario OEB proceedings periodically revisit distributed generation compensation.
Illustrative export value comparison
| Region | Typical retail import | Effective export credit | Gap |
|---|---|---|---|
| Ontario (TOU blend) | ~$0.13–0.17/kWh | Similar energy credit; delivery still paid | Delivery + fixed fees |
| Alberta (varies by retailer) | ~$0.12–0.16/kWh | $0.05–0.14/kWh depending on contract | 0–8 ¢/kWh |
| BC (net metering) | ~$0.10–0.14/kWh tiered | Bill credit per program | Fixed charges remain |
Figures illustrative — verify your bill and contract.
Oversizing penalty math
Example: 10 kW system producing 11,000 kWh/year on a home using 8,000 kWh. If 3,000 kWh export at 6 ¢/kWh effective while imports avoided would be worth 14 ¢, you lose 8 ¢ × 3,000 = $240/year versus perfect sizing — plus possibly expired Ontario credits on annual surplus.
EV adoption and heat pumps increase future load — modest oversizing for planned electrification differs from exporting for profit.
Batteries and export strategy
Home batteries store surplus for evening use instead of exporting at low rates. Break-even depends on export-import spread and battery cost. In Alberta with weak export tariffs, batteries improve self-consumption; in Ontario with reasonable net metering credits, ROI is slower.
Practical sizing guidance
Target 80–110% of current annual kWh use unless you have firm electrification plans — EV delivery date, heat pump contract signed. Export-first sizing made sense under legacy Ontario microFIT; it does not under modern net metering and Alberta retailer credits.
Export rates are the floor of your solar savings, not the ceiling. Design for consumption, understand your provincial credit rules, and treat every exported kilowatt-hour as a kWh you failed to use at full retail value.