FIT and microFIT Are Over — What Replaced Them?
From roughly 2009 to 2018, Ontario's Feed-In Tariff (FIT) and microFIT programs offered homeowners and businesses guaranteed above-market prices for electricity generated by solar panels and fed into the grid. Those programs are closed to new applicants. If your neighbour has a legacy FIT or microFIT contract, it was locked in years ago at a set rate — new contracts are no longer being issued.
The mechanism that replaced them for residential solar in Ontario is net metering. Net metering is less financially generous than the old FIT rates, but it remains a practical and legitimate way to reduce electricity costs over the life of a solar installation.
This page covers how net metering works today, what it means for Renfrew County homeowners, and what federal financing options exist to help fund a solar installation.
How Net Metering Works in Ontario
Net metering is a billing arrangement between a homeowner with solar panels and their local electricity distributor. The concept is straightforward:
- Generate electricity — Your solar panels produce power during daylight hours
- Use what you generate first — Electricity your home consumes at the moment of generation is used directly, reducing what you draw from the grid
- Export excess to the grid — When your panels produce more than your home is using — sunny midday when you are at work, for example — the surplus flows back into the grid through your bidirectional meter
- Receive a bill credit — The exported electricity is credited to your account at the same retail rate you would have paid to buy it, applied against future bills when your consumption exceeds your generation (evenings, winter months)
The credit carries forward month to month. Under Ontario's current net metering rules, any unused annual credit at the end of a 12-month period is handled according to your utility's specific policies — some utilities pay it out at a lower wholesale rate, others reset it.
Who Administers Net Metering in Ontario?
Net metering in Ontario involves two layers:
- IESO (Independent Electricity System Operator): Sets the provincial rules and framework for net metering under Ontario Regulation 541/05. The IESO's net metering program governs eligibility, system size limits (up to 500 kW for customer-generation, though most homes install 5–15 kW), and the billing structure.
- Your local distribution company (LDC): In most of Renfrew County, this is Hydro One. Hydro One administers the actual connection application, installs or upgrades your meter to a bidirectional smart meter, and applies the credits to your bill. All communication and applications go through Hydro One.
You do not apply to the IESO directly for a residential net metering connection — you apply through Hydro One, which handles the process under the IESO framework.
How to Connect a Solar System in Renfrew County
The connection process for a grid-tied solar system under net metering involves several required steps:
- Design and sizing — Determine the appropriate system size for your home's consumption. Your annual electricity bills give your baseline consumption in kWh. A licensed solar installer can size the system accordingly.
- Hire a licensed electrical contractor — All wiring, inverter installation, and grid connection must be performed by a Licensed Electrical Contractor (LEC) registered with the Electrical Safety Authority of Ontario (ESA). This is legally required — not optional.
- ESA permit and inspection — The contractor must pull an ESA permit before installation begins. An ESA inspector reviews the completed installation. Without passing inspection, the utility will not authorize the connection.
- Apply to Hydro One for net metering connection — Submit the net metering application to Hydro One before or concurrent with installation. Hydro One reviews the technical requirements and coordinates the meter upgrade to a bidirectional unit.
- Utility authorization and meter installation — Once the ESA inspection is passed and Hydro One approves the connection, the system is authorized to operate and export. Your existing smart meter may already be bidirectional, or Hydro One will schedule an upgrade.
The full process typically takes several weeks to a few months depending on Hydro One's queue and scheduling. Plan accordingly if you are also applying for the Canada Greener Homes Loan to help fund the installation — loan disbursement happens after the post-assessment, so timing matters.
Financing: Canada Greener Homes Loan for Solar
There is no upfront grant specifically for residential solar panels in Ontario as of June 2026. The old FIT-era incentives are gone, and no equivalent replacement program has been announced at the provincial level.
However, the Canada Greener Homes Loan covers solar photovoltaic panels as an eligible retrofit measure. This means you can borrow up to $40,000 interest-free over 10 years to fund a solar installation — provided it is recommended through a pre-retrofit EnerGuide assessment and the post-assessment verifies the installation. The combination of net metering bill credits over time and interest-free financing can make the numbers work for households with high electricity consumption.
Whether solar makes financial sense on your specific Renfrew County property depends on several factors: roof orientation and shading, your current electricity rate, your annual consumption, and the system cost. These are worth working through with a solar installer before committing.
Battery Storage: Growing Relevance
Battery storage systems paired with solar panels are becoming more common as battery costs decline and Ontario electricity rates continue to rise. A battery allows you to store solar generation during the day and use it in the evening — reducing the amount of grid electricity you consume during peak rate periods.
Under current Ontario time-of-use rates, grid electricity costs more during on-peak hours (typically weekday daytime and early evening). A battery can shift when you draw from the grid. However, battery storage is still a significant upfront cost — expect to add $10,000–$20,000 or more to the system cost depending on capacity and chemistry.
The Canada Greener Homes Loan may be applicable to battery storage systems depending on current NRCan eligibility rules — verify this on the program's official site when planning your project.
A Note on Program Evolution
Ontario's solar and electricity policy landscape has changed significantly over the past decade and continues to evolve. The federal government has signalled interest in expanding home energy incentives, and future programs — federal investment tax credits, new provincial programs, or IESO procurement rounds — could alter the economics of residential solar. This page reflects the current state as of June 2026 and will be updated as programs change.
Always verify current program availability with NRCan, the IESO, and Hydro One before making any purchasing decisions.