Net Metering vs. the HRSP Rebate: Which Solar Setup Is Right for You?

Ontario's HRSP offers rebates of up to $5,000 for solar ($1,000/kW installed) and $5,000 for battery storageA system that stores solar electricity for later use, typically during power outages. Batteries are optional and are not required for net-metered solar systems. ($300/kWh installed). If you take the HRSP solar rebate, the system is not eligible for net meteringA solar system configuration that allows excess solar electricity to be sent to the grid in exchange for hydro bill credits. These credits can then be used to offset future electricity imports. In Ontario, unused credits expire after 12 months.. Any excess electricity your solar system exports to the grid receives no credit on your hydro bill.

Net meteringA solar system configuration that allows excess solar electricity to be sent to the grid in exchange for hydro bill credits. These credits can then be used to offset future electricity imports. In Ontario, unused credits expire after 12 months. rewards solar production through bill credits. The HRSP rebate lowers upfront cost but gives up those credits. You cannot have both.

Excess solar production is exported to the grid for credits on your hydro bill. The grid effectively acts as your battery - credits earned in high-production summer months offset electricity used during lower-production winter months.

A properly sized net-metered system can reduce the energy charge portion of a hydro bill to near zero over the course of a year. For most Ontario homeowners, this remains the strongest option for long-term savings.

Size the system to match annual consumption. Credits expire after 12 months, so excess production is wasted. And net-metered systems do not provide power during outages - they shut down when the grid goes down.

Homeowners focused on long-term hydro bill savings who do not need backup power.

The HRSP rebate reduces the upfront cost of a solar installation by up to $5,000. Systems using this pathway are not eligible for net meteringA solar system configuration that allows excess solar electricity to be sent to the grid in exchange for hydro bill credits. These credits can then be used to offset future electricity imports. In Ontario, unused credits expire after 12 months.. Since exported electricity has no value, these systems are usually designed smaller to minimize excess production.

A lower upfront cost, even if total savings over the life of the system are smaller.

Without net meteringA solar system configuration that allows excess solar electricity to be sent to the grid in exchange for hydro bill credits. These credits can then be used to offset future electricity imports. In Ontario, unused credits expire after 12 months. credits, large solar systems become less attractive because exported power has no value. These systems are usually under 6 kW and offset less than 50% of a home's annual electricity use.

This option lowers upfront cost, but long-term savings are typically much lower than a properly designed net-metered system.

Homeowners who care more about reducing upfront cost than maximizing lifetime savings, and who do not need backup power.

The HRSP offers an additional rebate of up to $5,000 for battery storageA system that stores solar electricity for later use, typically during power outages. Batteries are optional and are not required for net-metered solar systems. ($300/kWh), but only when installed alongside a solar system. Because this pathway is not eligible for net meteringA solar system configuration that allows excess solar electricity to be sent to the grid in exchange for hydro bill credits. These credits can then be used to offset future electricity imports. In Ontario, unused credits expire after 12 months., any excess solar electricity exported to the grid receives no credit. The solar system is typically designed smaller than a net-metered system and paired with a battery that stores energy for later use.

The ability to have some power during outages, store energy for later use and reduce dependence on the grid. Some homeowners value having power during outages or reducing how much they depend on the grid, regardless of whether the numbers pencil out.

Even with the HRSP rebate, these systems rarely outperform a net-metered solar-only system financially.

During a summer outage, solar panels can recharge the battery and potentially extend backup duration. During a winter outage, shorter days and snow cover can limit recharging, which is when backup power may be needed most.

Batteries degrade over time. Warranty length, retained capacity, replacement cost and useful life relative to payback should all be considered.

Homeowners who want limited backup power, want more energy independence, use ultra-low overnight (ULO) rates, or value resilience more than long-term savings.

If you take the HRSP pathway with a battery, the battery is typically used in one of two ways:

Load displacementA solar system configuration where any excess power sent to the grid does not receive hydro bill credits. Because exported electricity provides no financial benefit, these systems often include battery storage to capture surplus energy for later use rather than sending it to the grid without compensation. (with ULO pricing). The battery charges overnight when electricity is cheapest and discharges during the day when rates are higher. This works best for homeowners focused on reducing electricity costs through rate shifting.

Self-consumption (with time-of-use pricing). The battery stores excess solar production during the day and discharges in the evening when solar production has stopped and rates are typically higher. This works best for homeowners who want to use as much of their own solar generation as possible.

Both modes can improve battery value, but in most cases they still do not match the financial performance of a net-metered solar-only system.

To qualify for the HRSP rebate, you must own the system. Purchased systems may qualify. Financed systems may qualify, depending on the financing structure. Leased systems do not qualify. If you are considering leasing, confirm eligibility before proceeding.

Some homeowners prefer a more customized approach:

Battery only (no solar). The battery stays charged for outages. No daily cycling, no financial benefit - purely backup power for essential loads.

Solar + battery prioritizing backup. Solar charges the battery, but the battery does not cycle daily. It stays charged in case of an outage, with solar covering daytime loads directly.

Solar sized for future EV charging. The system is designed for higher consumption than the home currently uses, anticipating a future electric vehicle or heat pump.

Partial offset solar. A smaller system focused on reducing a portion of your bill rather than trying to match full annual consumption.

If you are unsure which path makes the most sense, complete the intake form and your HSA Advisor can walk you through which scenarios fit your home and goals.