Orizon Energy
How Albertan's Are Saving More With Solar and Net Billing
How Albertan'ss Are Saving More With Solar and Net Billing
If you’re considering solar for your home in Alberta, chances are you’ve come across the term Net Billing, and just as quickly found yourself wondering what it actually means.
Between net billing, net metering, solar credits, and talk of solar clubs, it’s easy to feel overwhelmed. The good news is that net billing is much more simple than it may initially seem, and once you understand how it works, it becomes clear why it plays such an important role in helping Albertan Homeowners save even more money with solar.
This blog will break down net billing in plain language, explain the difference in different micro-generation models, and show how it helps solar homeowners lower their electricity bills year-round, especially through Alberta’s seasonal swings.
What Is Net Billing?
Net billing is the system Alberta uses to credit solar homeowners for excess electricity their solar panels produce and send back to the grid.
Here is a simple explanation:
- Your solar system prioritizes powering your home first.
- When your system produces more electricity than your home needs, that extra power flows into the grid.
- Your electricity retailer applies a credit to your bill for that exported energy.
Those credits help offset the cost of electricity you pull from the grid when your solar system isn’t producing enough, like at night or during the winter season.
Net billing operates under Alberta’s Micro-Generation framework, overseen by the Alberta Utilities Commission, and it applies to most residential grid-tied solar systems in the province.
Micro-Generator essentially means that you are providing a micro amount of power under certain definitions to the grid and therefore you and your residential solar system are classified as micro-generators.
Net Billing vs. Net Metering: What’s The Difference?
One of the biggest sources of confusion is the difference between net billing and net metering, the two most prominent micro-generation programs in Canada.
In many regions, “net metering” is used as a catch all term for solar credit systems. In Alberta, however, net billing is the more accurate term under the province's electricity market structure.
The key idea homeowners should understand is this:
- Net billing tracks electricity in two directions
- Electricity you import from the grid
- Electricity you export back to the grid
- Your bill reflects both, with exported electricity appearing as “credits” on your bill
Alberta uses net billing because it operates in a deregulated electricity market, where retailers set rates rather than a single government-mandated net-metering structure. For homeowners, the practical outcome is the same: your solar exports reduce what you pay overall.
How Net Billing Helps You Save Money
Net billing creates savings in a few important ways.
You Buy Less Electricity From the Grid by Using Solar
Every kilowatt-hour your solar system produces and uses in real time is one you don’t have to purchase from your energy retailer. This directly reduces the energy consumption portion of your bill.
You Get Credits for Excess Solar Production
When your system exports unused electricity, your retailer applies credits to your account. Essentially paying you for the provided electricity. These credits help offset future electricity charges, lowering your total bill during times of lower production from your solar system.
Your Savings Add Up Over The Year
Net Billing isn’t about eliminating your bill overnight, it’s about reducing how much you pay across the year by combining lower imports with solar credits.
One important reality check: even with solar most homeowners will still see some fixed charges on their bill, such as distribution and transmission fees. Net billing primarily reduces the variable energy portion of your bill, which is where the biggest long-term savings typically come from.
Seasonal Performance: Why Net Billing Works So Well in Alberta
Alberta’s seasons play a major role in how net billing delivers value to Albertan’s with residential solar systems.
Summer: When Credits Build
Alberta’s long summer days allow solar systems to maximize production. Many homes generate more power than they use during daylight hours, leading to exported electricity and growing bill credits. Unless you have a battery system storing the excess energy you produce it would be wasted if it’s not being exported back to the grid.
Winter: When Credits Pay Off
In winter, solar production drops due to shorter days, while electricity use often increases. This is where net billing shines, the credits you built up during the high production months helps to offset grid electricity being purchased during lower production months. Orizon Energy uses this system to help you get an understanding of how much solar will save you year round when doing our free energy assessments.
Credit Carry-Forward
In Alberta, solar credits can typically carry forward for up to 12 months, allowing summer surplus to support your winter usage. Any remaining credits are settled at least annually, depending on your retailer’s terms.
This seasonal balancing act is one of the biggest reasons solar continues to make sense in Alberta despite having cold winters.
A Quick Note on Alberta Solar Club
You may have also heard about the Alberta Solar Club, an optional retail plan that some Alberta solar owners choose to use. These plans can offer higher credit rates during high-export seasons and lower rates during winter.
Solar Clubs can be a useful strategy for some homeowners, but they aren't required for net billing to work effectively. Net billing exists regardless of whether you’re signed up for a solar club plan or not, and many homeowners still see meaningful savings without them.
How to Sign Up for Net Billing in Alberta
Net billing setup is part of the solar installation process, but understanding the steps helps set expectations. The process is usually very similar and follows this process:
- Install a grid-tied solar system that meets Alberta’s micro-generation requirements.
- Complete the necessary micro-generation and utility interconnection paperwork.
- Ensure you have a bi-directional meter installed.
- Confirm your electricity retailer account supports micro-generation credits.
How Orizon Energy Helps
For homeowners considering solar with Orizon Energy, we guide you through:
- Utility coordination and paperwork
- Micro-generation setup requirements
- What to expect from your electricity bill once your system is live
- How credits appear and how seasonal performance typically looks
Our goal is to make sure your system is designed and set up so you can fully benefit from net billing starting on your first post install electricity bill.
Common Net Billing Misunderstandings
A few quick clarifications we often see homeowners trip over:
- “Net billing means i get paid cash every month”
- Not exactly. Credits earned will save you money but you will not be earning cash in hand for exporting energy to the grid.
- “Solar eliminates my entire electricity bill”
- Solar reduces your energy charges, but even with a net zero system installed there are still fixed charges you will pay monthly related to being tied to the grid.
- “My app production number equals my bill credit”
- Billing is based on utility meter readings, not just app estimates, so the numbers may not align 1:1
Understanding these upfront helps avoid confusion later on in your solar journey.
Final Thoughts: Why net Billing Matters for Alberta Solar Homeowners
Net billing is one of the key reasons solar continues to deliver strong value in Alberta. By allowing homeowners to earn credits for excess production and use them when solar output is lower, the program turns seasonal differences into an advantage rather than a drawback.
If you’re considering solar, understanding net billing early on will help you:
- Set realistic expectations
- Understand where savings come from
- Design a system that works for Alberta’s climate and market structure
If you’re exploring solar for your home, Orizon Energy is here to help you understand how net billing works and what it could look like for your specific situation. We work exclusively with systems we design and install ensuring everything is set up properly from the start so you can make the most of Alberta's billing framework and renewable energy as a whole.
