Selling to the Grid and Net Metering
The Feed-In Tariff [FIT] program requires a direct connection into the grid from the generating equipment and thus a direct sale of electricity to the Ontario Power Authority, or through a Local Distribution Company [LDC].
Net Metering is the generation of electricity that flows through a house or other property, with any unused power flowing to the grid as a credit. If more power is needed than is being generated at the location, the additional power required is drawn from the grid. The intention is that at the end of a year, the net draw from the grid is zero, and the property owner has no kWh consumption charges to pay, but all other charges levied. Net Metering effectively credits the property owner at the normal consumption rate levied, eg 6.0¢/kWh.
In the case of Solar Photovoltaic [PV] generation under 10kW, a FIT contract pays up to 80.2¢/kWh, thus it makes sense to sell all power to the grid at the higher price, and just pay the electricity bill as normal. As the connection point to the grid will be close to where power is drawn by the property, most if not all electricity generated will be used by that property. Some electrons will disappear into the grid, but the power generated will be paid at the FIT price.



