You're using an outdated browser. This website will not display correctly and some features will not work.
Learn more about the browsers we support for a faster and safer online experience.

Ontario Energy Board Act, 1998
Loi de 1998 sur la commission de l’énergie de l’Ontario

ONTARIO REGULATION 541/05

Net Metering

Historical version for the period September 9, 2009 to February 7, 2017.

Last amendment:  O. Reg. 327/09.

This Regulation is made in English only.

Definitions

1. In this Regulation,

“eligible electricity” means the electricity that meets the criteria set out in section 7 that an eligible generator may return to a distributor;

“eligible generator” means a customer of a distributor who meets the criteria set out in section 7.  O. Reg. 327/09, s. 1.

Application

2. (1) Subject to sections 3 and 4, at the request of an eligible generator and in the circumstances and manner described in this Regulation, a distributor,

(a) shall allow the eligible generator to return eligible electricity for a refund; and

(b) shall bill the eligible generator on a net metering basis.  O. Reg. 541/05, s. 2 (1).

(2) To be eligible to be billed on a net metering basis, an eligible generator must return eligible electricity to the distributor by conveying eligible electricity into the distributor’s distribution system.  O. Reg. 541/05, s. 2 (2).

(3) For the purposes of this Regulation, billing on a net metering basis is calculated in accordance with section 8 by subtracting the value of the amount of eligible electricity returned by the eligible generator from the value of the amount of electricity consumed from the system by the eligible generator.  O. Reg. 541/05, s. 2 (3).

Exception

3. (1) Subsection 2 (1) does not apply to the following types of distributors:

1. A distributor that distributes electricity solely in a community listed in Ontario Regulation 199/02 (Hydro One Inc.) made under the Electricity Act, 1998.

2. A distributor that distributes electricity solely in a settlement or reserve listed in Schedule 1 to Ontario Regulation 161/99 (Definitions and Exemptions) made under the Act.

3. A distributor that distributes electricity solely in a reserve listed in Schedule 2 to Ontario Regulation 161/99 (Definitions and Exemptions) made under the Act.  O. Reg. 541/05, s. 3 (1).

(2) Nothing in subsection (1) prevents a distributor to which subsection (1) applies from entering into a net metering agreement with an eligible generator in the circumstances and manner described in this Regulation.  O. Reg. 541/05, s. 3 (2).

Subject to distributor’s licence

4. The connection of an eligible generator to a distributor’s distribution system is subject to any conditions in the distributor’s licence governing the connection of generation facilities to its distribution system.  O. Reg. 541/05, s. 4.

Existing agreements

5. (1) If on October 24, 2005 a customer has an existing agreement with a distributor that permits net metering, the existing net metering agreement continues in accordance with the terms set out in the agreement,

(a) until the agreement expires; or

(b) subject to subsection (2), for as long as the agreement is renewed.  O. Reg. 541/05, s. 5 (1).

(2) An existing net metering agreement may be renewed as often as the parties agree to the renewal if,

(a) both parties consent to the renewal; and

(b) the agreement is renewed on terms that are substantially similar to the agreement as it existed on October 24, 2005.  O. Reg. 541/05, s. 5 (2).

(3) Except as permitted in this section, net metering agreements shall be made in accordance with this Regulation and shall conform with the provisions set out in this Regulation.  O. Reg. 541/05, s. 5 (3).

Subject to retail contract

6. A customer who has a contract with a retailer of electricity may enter into an agreement with a distributor to be billed on a net metering basis if,

(a) the customer is an eligible generator;

(b) the customer is billed under the bill-ready form of distributor-consolidated billing pursuant to the Retail Settlement Code; and

(c) the retailer confirms to the distributor that the retailer and the customer have an agreement that allows the customer to return eligible electricity to the retailer for the purpose of being billed on a net metering basis.  O. Reg. 541/05, s. 6.

Eligible generator

7. (1) A generator of electricity is an eligible generator if,

(a) the generator generates the electricity primarily for the generator’s own use;

(b) the generator generates the electricity solely from a renewable energy source;

(c) the maximum cumulative output capacity of the equipment used to generate the electricity that the generator intends to return to the distributor for net metering purposes is no greater than 500 kilowatts based on the rated maximum output capacity of the equipment; and

(d) the generator conveys the electricity that is generated directly from the point of generation to another point for the generator’s own consumption without reliance on the distributor’s distribution system before conveying any electricity that is in excess of the generator’s own needs at the time of generation into the distributor’s distribution system.  O. Reg. 541/05, s. 7 (1).

(2) Revoked:  O. Reg. 327/09, s. 2.

Account billing

8. (1) A distributor shall calculate the amount of the bill of an eligible generator whose eligible electricity is taken into account for billing on a net metering basis in the following manner:

1. In any billing period when,

(D + E) ≤ C

the distributor shall use the following formula:

A = B + C – (D + E)

2. In any billing period when,

(D + E) > C

the distributor shall use the following formula:

A = B

O. Reg. 541/05, s. 8 (1).

(2) For the purposes of this section,

A is the amount of the bill for the billing period,

B is the total of those charges that are not calculated on the basis of the customer’s consumption of or demand for electricity, calculated by the distributor in the manner normally applicable to the customer for the billing period,

C is the total of those charges for electricity consumed from the distributor’s distribution system by the eligible generator during the billing period that are calculated on the basis of the customer’s consumption of or demand for electricity, including charges for the commodity of electricity, calculated by the distributor in the manner normally applicable in billing the customer,

D is the total monetary value of the eligible electricity returned during the billing period to the distributor by the eligible generator, calculated on the same basis as the customer’s consumption of, but not demand for, electricity, including charges for the commodity of electricity, but without any adjustment for total losses as defined in the Retail Settlement Code, and

E are any accrued returned electricity credits as calculated in accordance with subsection (6) that have not been depleted in a previous billing period.

O. Reg. 541/05, s. 8 (2).

(3) For the purpose of the calculations of B and C in subsection (2), the distributor shall calculate their values without regard to the customer generating eligible electricity or being billed on a net metering basis.  O. Reg. 541/05, s. 8 (3).

(4) If, where permitted, an eligible generator’s meter installation as defined in the Retail Settlement Code is a single-register meter, the distributor shall modify the calculation of C and D for the purposes of subsection (2) according to the following rules:

1. In any billing period when the kilowatt-hour reading on the meter at the end of the period is greater than or equal to the kilowatt hour reading on the meter at the beginning of the period, the difference between the two readings shall be deemed to constitute the amount of electricity that the eligible generator consumed from the distributor’s distribution system for the purpose of calculating C and a value of $0 is assigned to D.

2. In any billing period when the kilowatt hour reading on the meter at the end of the period is less than the kilowatt hour reading on the meter at the beginning of the period, the difference between the two readings shall be deemed to constitute the amount of eligible electricity returned to the distributor by the eligible generator for the purpose of calculating D and a value of $0 is assigned to C.  O. Reg. 541/05, s. 8 (4).

(5) If the customer has a contract with a retailer, the distributor shall modify the calculation of C and D for the purposes of subsection (2) according to the following rules:

1. In any billing period when the portion of the bill covering competitive electricity services for the consumer constitutes a charge to the customer or is equal to $0, the amount of the charge or $0, as the case may be, shall be used as the charge for the commodity of electricity for the purpose of calculating C and $0 shall be used as the charge for the commodity of electricity for the purpose of calculating D.

2. In any billing period when the portion of the bill covering competitive electricity services for the consumer constitutes a credit to the customer, the amount of the credit shall be used as the charge for the commodity of electricity for the purpose of calculating D and $0 shall be used as the charge for the commodity of electricity for the purpose of calculating C.

3. The competitive electricity services for the purposes of paragraphs 1 and 2 shall be as calculated by the retailer in accordance with the agreement between the retailer and the customer and transmitted to the distributor for inclusion in the customer’s bill under the bill-ready form of distributor-consolidated billing pursuant to the Retail Settlement Code.  O. Reg. 541/05, s. 8 (5).

(6) Subject to subsection (7), returned electricity credits accrue or are depleted on the basis of a running balance in accordance with the following rules:

1. In any billing period where the value of E + D – C is positive, E is assigned that value for the purposes of the next billing period.

2. In all cases other than the case described in paragraph 1, the value of E shall be deemed to be $0 for the purposes of the next billing period.  O. Reg. 541/05, s. 8 (6).

(7) Subject to subsection (8), after issuing a bill in any billing period where the value of E is positive and has been positive for all billing periods in the previous 10 months, the distributor shall reduce the value of any remaining accrued electricity credits to $0 and E shall be deemed to be $0 for the purpose of the next billing period.  O. Reg. 541/05, s. 8 (7).

(8) A distributor shall reduce the value of any remaining accrued electricity credits to $0 in accordance with subsection (7) solely if the bill is based on an actual reading of the eligible generator’s meter.  O. Reg. 541/05, s. 8 (8).

(9) For the purposes of subsection (8), the distributor may request that the eligible generator obtain and supply the meter reading following the procedures normally used for customer-supplied meter readings if,

(a) the distributor would normally not have the eligible generator’s meter read for a billing period where the value of E has been positive for all billing periods in the previous 10 months; and

(b) the eligible generator can read the meter without the need of any apparatus.  O. Reg. 541/05, s. 8 (9).

(10) Despite subsection (8), a distributor may reduce the value of any remaining accrued electricity credits to $0 after issuing a bill to the eligible generator in any month where the value of E is positive and has been positive for all billing periods in the previous 10 months and E shall be deemed to be $0 for the purpose of the next billing period if the eligible generator fails to promptly and diligently comply with the distributor’s request pursuant to subsection (9) to read the meter.  O. Reg. 541/05, s. 8 (10).

(11) The value of any remaining accrued electricity credits in the eligible generator’s account is reduced to $0,

(a) upon issuing of the final bill to an eligible generator when the account is terminated; or

(b) upon cancelling the net metering agreement for any reason, except if the cancelled agreement existed on or is the renewal of an agreement that existed on October 24, 2005 and at the same time as giving notice of cancellation the eligible generator requests that he, she or it be allowed to return eligible electricity to the distributor for the purpose of being billed on a net metering basis.  O. Reg. 541/05, s. 8 (11).

(12) Any remaining accrued electricity credits that are reduced to $0 in accordance with this section are conveyed to the account of the distributor.  O. Reg. 541/05, s. 8 (12).

(13) In addition to any other amounts that may be billed to a customer as specified in this section, a distributor may bill a customer for incremental metering and other costs incurred in order to connect the eligible generator’s generation facilities to its distribution system in accordance with the Board’s Distribution System Code.  O. Reg. 541/05, s. 8 (13).

Cancellation of agreement

9. (1) A consumer may cancel a net metering agreement with a distributor at any time by giving 90 days notice in writing to the distributor.  O. Reg. 541/05, s. 9 (1).

(2) A consumer who is an eligible generator and who has cancelled a net metering agreement under subsection (1) may not for 12 months after the cancellation be permitted to return eligible electricity to the distributor for the purpose of being billed on a net metering basis unless,

(a) the cancelled agreement existed on or is the renewal of an agreement that existed on October 24, 2005; and

(b) at the same time that the consumer gives notice of cancellation, the consumer requests that he, she or it be allowed to return eligible electricity to the distributor for the purpose of being billed on a net metering basis.  O. Reg. 541/05, s. 9 (2).

10. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 541/05, s. 10.