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How does NB Power's net metering work if I want to install solar panels?

Question

How does NB Power's net metering work if I want to install solar panels?

Answer from Electric IQ

Net metering in New Brunswick allows homeowners with solar panels (or other renewable generation) to send excess electricity back to NB Power's grid and receive credits on their bill. It's growing in popularity across the province as solar panel costs drop and electricity rates rise — but the program has specific rules, limits, and electrical requirements you need to understand.

What Is Net Metering?

Net metering means your electricity meter runs in both directions:

  • When your solar panels produce more power than you're using, the excess flows back to the NB Power grid, and your meter runs backward (you earn credits)

  • When your panels produce less than you need (nighttime, cloudy days, winter), you draw from the grid normally and your meter runs forward (you use credits or pay)


At the end of each billing period, you pay for only the net difference. If you produced more than you consumed, the excess carries forward as a credit for future months.

NB Power's Net Metering Program Rules

Eligibility:

  • Available to all NB Power residential customers

  • System must be 100 kW or smaller (residential systems are typically 5–15 kW)

  • Generation must be from renewable sources — solar (photovoltaic), wind, micro-hydro, or biomass

  • Must be connected to NB Power's distribution grid (not applicable for off-grid properties)


Credit structure:
  • Excess generation is credited at the full retail rate (same rate you pay for electricity — currently approximately $0.1131/kWh for the first block and $0.1474/kWh for the second block)

  • Credits carry forward month to month

  • At the end of the annual billing cycle (typically the anniversary of your enrollment), any remaining credits are reset to zero — NB Power does not pay cash for excess generation

  • This annual reset means oversizing your system too much wastes credits. The goal is to size the system to match your annual consumption as closely as possible


Application process:
  • Choose a qualified solar installer (look for NABCEP-certified or equivalent)

  • Installer helps complete the NB Power Net Metering Application

  • NB Power reviews and approves the application (typically 4–8 weeks)

  • System is installed and inspected (TSANB electrical inspection required)

  • NB Power installs a bi-directional meter (no cost to you)

  • System is commissioned and you begin generating credits
  • Electrical Requirements for Solar in NB

    Panel and Inverter

    A residential solar array has two main electrical components:

    Solar panels (DC generation): Panels produce direct current (DC) electricity at voltages typically ranging from 300–600V DC for a residential string inverter system. This DC wiring runs from the roof-mounted panels to the inverter location.

    Inverter (DC to AC conversion): The inverter converts DC power from the panels to 120/240V AC that matches your home's electrical system and the NB Power grid. Inverter types:

    • String inverter: One central inverter handles all panels. Most cost-effective. Located near the panel or in the basement/garage. Cost: $1,500–$3,000 for residential sizes.

    • Microinverters: Small inverters mounted behind each panel on the roof. Better performance with partial shading. Cost: $150–$300 per panel (higher total cost but better per-panel optimization).

    • Hybrid inverter: Combines grid-tied operation with battery storage capability. Allows future battery addition. Cost: $2,500–$5,000.


    Electrical Panel Requirements

    Panel capacity: Your main electrical panel must have space for the solar breaker. A typical 5–10 kW solar system requires a 30–60 amp, 240V dedicated breaker in your main panel.

    The 120% rule (CEC Section 64): The CEC limits the total amperage feeding a panel to 120% of the panel's bus rating. For a 200-amp panel:

    • Main breaker: 200A

    • Maximum solar backfeed breaker: 200A × 120% - 200A = 40A (supports up to about 7.6 kW of solar)

    • For larger solar arrays, either a panel upgrade or a supply-side connection (ahead of the main breaker) is needed


    If your home has a 100-amp panel, the 120% rule severely limits solar capacity. An upgrade to 200-amp service ($2,500–$5,000) is usually recommended before solar installation.

    Disconnect Requirements

    AC disconnect: NB Power requires a visible, lockable AC disconnect switch between the inverter and the grid connection point. This allows NB Power to safely disconnect your solar system during maintenance. Typically mounted on the exterior wall near the meter.

    DC disconnect: A DC disconnect switch is required between the solar panels and the inverter, allowing the DC side to be safely de-energized for maintenance.

    Rapid shutdown: Current CEC requirements mandate rapid shutdown capability — the ability to reduce rooftop DC voltage to safe levels within 30 seconds of activation. Most modern inverters and microinverter systems include this feature.

    TSANB Permit

    Solar panel installation in New Brunswick requires a TSANB electrical permit and inspection. The inspection covers:

    • DC wiring from panels to inverter

    • AC wiring from inverter to panel

    • Disconnect switches

    • Grounding and bonding

    • Proper breaker sizing and the 120% rule compliance

    • Rapid shutdown compliance


    Permit fee: $100–$250 depending on system size.

    Solar Production in New Brunswick

    New Brunswick receives approximately 1,100–1,300 kWh of solar energy per square metre per year — less than southern Ontario or British Columbia, but still viable for net metering.

    Seasonal variation:

    • Summer (June–August): Peak production — long days (15+ hours of daylight), high sun angle. A 10 kW system can produce 40–50 kWh per day.

    • Winter (December–February): Minimum production — short days (8–9 hours), low sun angle, snow coverage. The same system produces 10–15 kWh per day.

    • Annual total: A well-positioned 10 kW system in the Moncton/Fredericton/Saint John area produces approximately 11,000–13,000 kWh per year.


    NB-specific factors affecting production:
    • Snow coverage: Panels with a steep pitch (30°+) self-clear snow faster. Maritime wet snow sticks more than prairie dry snow.

    • Fog and overcast: Coastal areas (Bay of Fundy, Northumberland Strait) experience more fog and overcast days than inland locations

    • Orientation: South-facing roof pitch of 30–40 degrees is optimal for NB's latitude (approximately 46°N)


    Cost and Payback

    | Component | Cost Range |
    |-----------|------------|
    | Solar panels (10 kW system) | $15,000–$22,000 |
    | Inverter | $1,500–$5,000 |
    | Mounting hardware | $1,500–$3,000 |
    | Electrical work (disconnect, breaker, wiring) | $1,000–$2,500 |
    | TSANB permit | $100–$250 |
    | NB Power meter upgrade | $0 (NB Power covers) |
    | Total installed (10 kW) | $20,000–$32,000 |

    Federal incentive: The Canada Greener Homes Grant has offered up to $5,000 for solar panel installation (check current program availability).

    Payback period: At current NB Power rates, a 10 kW system offsetting 10,000–12,000 kWh annually saves approximately $1,200–$1,700 per year. Simple payback: 12–20 years depending on system cost and electricity rate increases.

    Note: NB Power rates have been increasing approximately 2–3% annually. If this trend continues, the payback period shortens as the value of your solar generation increases each year.

    Battery Storage Considerations

    NB Power's net metering program currently provides credits at full retail rate, which means the grid effectively acts as a free battery — you export during the day and import at night without losing value. This makes battery storage less financially attractive in NB compared to jurisdictions with lower export rates.

    However, batteries provide backup power during outages — valuable in NB where extended outages occur. A battery system (like Tesla Powerwall or Enphase IQ Battery) adds $10,000–$20,000 to the installation cost. For most NB homeowners, the economics currently favor grid-tied solar without batteries, unless outage resilience is a priority.

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