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PRACTICAL GUIDE · SELF-GENERATION
Grid-connected solar: how net metering works
Net metering records surplus renewable electricity exported to the Hydro-Québec grid.
Under Option I, surplus energy is first stored in a kilowatt-hour bank and applied to future consumption under the current rules.
01
The basic principle
Surplus flows to the grid
When generation exceeds instantaneous consumption, the excess is exported to the grid.
The surplus becomes a credit
Accumulated kilowatt-hours can reduce the net consumption shown on later statements.
02
Important Option I rules
These rules should be included in system sizing.
| Item | How it works |
|---|---|
| Type of credits | Surplus energy is first recorded in kWh rather than purchased at the full retail rate. |
| Surplus bank | Net surplus is applied against net consumption on later statements. |
| Bank reset | The bank is reset every 24 months. The first reset is normally set for March 31 of the even-numbered year following enrolment, subject to the rules allowing a later date within the permitted period. |
| Balance at reset | A positive balance produces a monetary bill credit based on the average supply cost in the Electricity Rates, not the full retail rate. |
| Transfer | The surplus-bank balance cannot be transferred to another service contract. |
Why this matters
A heavily oversized system can accumulate surplus energy that is less valuable when the bank resets. Target generation should remain consistent with actual consumption.
03
Interconnection, metering and compliance
- The installation must use an eligible renewable source and meet Hydro-Québec requirements.
- Grid-connected equipment must meet applicable regulations and Hydro-Québec technical standards.
- Metering must separately record electricity supplied by the grid and electricity exported to it.
- Final authorization from Hydro-Québec is mandatory before connecting the equipment to the grid.
- Interconnection work must be entrusted to a qualified electrical contractor.
04
Advantages and limits
ADVANTAGES
The grid helps balance energy
- You do not need to store all surplus energy in batteries.
- A battery-free architecture is generally simpler.
- The mechanism can reduce billed net consumption.
LIMITS
The grid remains essential
- Net metering alone does not provide backup power.
- During an outage, a standard grid-tied solar system shuts down to protect the grid.
- Powering loads during an outage requires a hybrid backup architecture with proper grid isolation.
05
Who is it suited for?
- An eligible home or small building already connected to the grid
- A primary goal of reducing net consumption and the electricity bill
- A project that does not require complete autonomy
- An installation sized to actual needs and local grid hosting capacity
KEY TAKEAWAY
Net metering rewards coherent system sizing.
It allows seasonal surplus to be credited without requiring a battery, but it does not turn the grid into backup power and does not value every surplus kilowatt-hour at the full retail rate.
Official source: Hydro-Québec — Net Metering Option I ↗
Official source: Hydro-Québec — Self-generation interconnection ↗
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