Net metering (also known as net billing) is a mechanism for compensating parties for the electricity generated by a solar PV system through two channels:

• The homeowner / generator first consumes the electricity produced by the solar system at their home/building, therefore lowing their electricity bill; and
• The generator exports any excess electricity (if they are generating more electricity than they are using) to the local distribution grid.

This exported electricity is generally credited towards the homeowner's electricity bill, giving them credits to apply against future electricity consumption. It is important to remember that, in most provinces, no cheque is issued under a net metering arrangement. Generally, the only way you are compensated for your electricity generation is based on lowering your electricity bill.

Some form of net metering regulation is generally available in all jurisdictions in Canada that are connected to a local electric distribution system. There are differences, however, in how different jurisdictions allow for net metering. To get more information about how net metering is done in your particular area you should contact your local electric utility or the electricity regulator in your province/territory.