How Net Billing Works in Alberta and Why It’s a Game-Changer for Solar Homeowners
Key Takeaways/TLDR
Net billing lets homeowners sell extra solar energy back to the grid
You receive a dollar credit on your electricity bill
This system helps balance out seasonal solar production
Alberta’s deregulated electricity market makes net billing flexible
Net billing improves long-term savings and shortens solar payback periods
What Is Net Billing?
Net billing is a billing system that allows solar homeowners to send extra electricity back to the grid. In return, your utility provider gives you a credit on your monthly bill based on the retail rate of electricity at the time you export it.
This is different from net metering, which credits energy in kilowatt-hours. Net billing gives you a dollar value, helping you lower your bill directly.
How It Works in Alberta
Your solar panels produce electricity
You use the electricity you need during the day
Any extra energy that isn’t used is sent to the grid
Your utility provides a credit based on the market price
You use those credits to offset your monthly bill
If you use more energy than you produce, you pay the difference
This helps you maximize the value of your solar system and use the grid like a backup battery.
Why It Improves Your ROI
Homeowners often wonder what happens when they generate more power than they need. With net billing, that extra energy is not wasted. It is converted into bill credits that reduce costs in future months.
This is especially useful in Alberta, where long summer days can produce more solar power than your household uses. Those summer credits can help cover lower winter production, improving your return on investment.
How Are the Credits Calculated?
Alberta’s micro-generation regulations allow solar systems up to 150 kW
Credits are based on your electricity retailer’s rate at the time of export
Monthly utility bills show both imported and exported power
Extra credits can carry over to future billing periods
Key Benefits of Net Billing
✅ No wasted energy. All surplus production is credited.
✅ Seasonal balancing. Summer overproduction helps cover winter use.
✅ Shorter payback periods. You recover your investment faster.
✅ Automatic process. No manual submissions or tracking required.
✅ Market flexibility. Alberta’s open market offers competitive rates.
Real Example
Let’s say your home uses 600 kWh in July, but your panels generate 1,000 kWh.
You use 600 kWh
The remaining 400 kWh is sent to the grid
Your electricity retailer credits you for those 400 kWh
Those credits reduce your bill or roll into the next month
This is how solar energy works for you, even when you produce more than you consume.
How LUMI Renewables Supports You
At LUMI Renewables, we go beyond installation. We help you:
Understand your utility’s net billing structure
Design a system that maximizes credits and ROI
Handle the grid connection process
Track your production and billing over time
We ensure that your solar investment is working for you in every season.
Conclusion
Net billing is one of the main reasons solar energy is so effective in Alberta. It gives you full value for your power and helps reduce your energy bills year-round.
Ready to see how net billing could work for your home?
Book your free solar consultation with LUMI Renewables today.
