What is 'Net Metering'?
What is 'Net Metering'?
Solar Power Question:
What are the differences between Net Metering with BC Hydro and FortisBC , and do both companies pay back customers equally if they’ve generated a surplus of electricity?
In order to understand the differences between both companies Net Metering programs, it’s important to understand the differences in how BC Hydro and FortisBC charge customers for electricity.
When you choose to install solar panels, your goal should be to maximize your savings and independence from the grid. While generating more power than you use may sound like a great idea, we encourage our customers to aim for a net-zero solar power system.
A net-zero system is designed to produce just enough electricity to match your annual energy needs, allowing you to avoid over-reliance on the grid while enjoying the most significant financial benefits. By sizing your system to achieve net-zero, you can reduce your energy bills to virtually zero, take control of your energy future, and make the most of your investment.
On January 1, 2024, FortisBC’s residential electricity rates increased by 6.74 per cent.
Bimonthly residential service:
- Customer charge of $45.28 based on a 60 day billing period.
- Electricity use is billed at 14.160¢ per kilowatt hour (kWh).
On this rate plan, you’re charged a lower (Tier 1) price for electricity up to a certain threshold in each billing period, and a higher (Tier 2) price for all electricity use beyond that threshold. This tiered rate is designed to encourage conservation.
This rate has been the default rate for residential customers since 2008.
Tier One 10.97 cents per kWh for all usage under the Tier 1 threshold, e.g.
- The first 1,350 kWh in an average 60-day billing period.
- The first 675 kWh in an average 30-day billing period.
Tier Two 14.08 cents per kWh over the Tier 1 threshold.
Basic Charge 22.53 cents per day.
The tiered rate with time-of-day pricing is an optional rate plan that became available to residential customers in June 2024.
On this plan, electricity is more expensive during the evening and cheapest overnight.
Tier 1 10.97 cents per kWh for all usage under the Tier 1 threshold, e.g. the first 675 kWh in an average 30-day billing period.
Tier 2 14.08 cents per kWh over the Tier 1 threshold.
On-peak surcharge: 4 to 9 p.m. local time +5 cents per kWh of electricity used during the on-peak period.
Overnight discount: 11 p.m. to 7 a.m. local time -5 cents per kWh of electricity used during the overnight period.
Off-peak: 7 a.m. to 4 p.m. and 9 to 11 p.m. local time No discount or surcharge for electricity used during the off-peak period.
Basic Charge 22.53 cents per day.
Last updated: 9 September 2024.
General Service Business Rates
General Service Business Rates
The Small General Service rate is for business customers with an annual peak demand less than 35 kW. They receive service under rate schedules 1300, 1301, 1310, or 1311 of the Electric Tariff.
Business customers in the District of Bella Bella (Rate Zone 1B) with an annual peak demand less than 35 kW also receive service under this rate.
Basic Charge A small, daily charge that partially covers the fixed cost of services for things such as metering and billing. | 39.31 cents per day. |
Energy Charge | 13.52 cents per kWh. |
Minimum Charge A charge that covers the costs of maintaining our equipment year round for customers with high electricity usage in the winter but low electricity usage in summer. | 39.31 cents per day. Equal to the Basic Charge. |
Discounts | 1.5% on entire bill if electricity is metered at primary potential. $0.25 per kW if customer supplies transformation from a primary to a secondary potential. If eligible for both, the 1.5% discount is applied first. |
The Medium General Service rate is for business customers with an annual peak demand between 35 and 150 kW, and that use less than 550,000 kWh of electricity per year. They receive service under rate schedules 1500, 1501, 1510, or 1511 of the Electric Tariff.
Basic Charge A small, daily charge that partially covers the fixed cost of services for things such as metering and billing. | 28.82 cents per day. |
Demand Charge The rate electricity is used, typically measured in kilowatts (kW). Peak demand is the highest rate of electricity use during a period of time. | $5.83 per kW. |
Energy Charge | 10.44 cents per kWh. |
Minimum Charge A charge that covers the costs of maintaining our equipment year round for customers with high electricity usage in the winter but low electricity usage in summer. | Equal to 50% of the highest Demand Charge during the previous November 1 to March 31 period. The Basic Charge, Energy Charge, and Demand Charge are replaced by the Minimum Charge if their sum is less than this amount. |
Power Factor Surcharge A measure of efficiency, and the ratio of usable power (kW) to reactive power (kVar) in a circuit. It varies between 0 and 1, and is normally given as a percentage (1 to 100%). We apply a power factor surcharge to business customers whose power factor drops below 90%. | Applicable if power factor is below 90%. |
Discounts | 1.5% on entire bill if electricity is metered at primary potential. $0.25 per kW if customer supplies transformation from a primary to a secondary potential. If eligible for both, the 1.5% discount is applied first. |
The Large General Service rate is for business customers with an annual peak demand of at least 150 kW, or that use more than 550,000 kWh of electricity per year. They receive service under rate schedules 1600, 1601, 1610, or 1611 of the Electric Tariff.
Basic Charge A small, daily charge that partially covers the fixed cost of services for things such as metering and billing. | 28.82 cents per day. |
Demand Charge The rate electricity is used, typically measured in kilowatts (kW). Peak demand is the highest rate of electricity use during a period of time. | $13.30 per kW. |
Energy Charge | 6.53 cents per kWh. |
Minimum Charge A charge that covers the costs of maintaining our equipment year round for customers with high electricity usage in the winter but low electricity usage in summer. | Equal to 50% of the highest Demand Charge during the previous November 1 to March 31 period. The Basic Charge, Energy Charge, and Demand Charge are replaced by the Minimum Charge if their sum is less than this amount. |
Power Factor Surcharge A measure of efficiency, and the ratio of usable power (kW) to reactive power (kVar) in a circuit. It varies between 0 and 1, and is normally given as a percentage (1 to 100%). We apply a power factor surcharge to business customers whose power factor drops below 90%. | Applicable if power factor is below 90%. |
Discounts | 1.5% on entire bill if electricity is metered at primary potential. $0.25 per kW if customer supplies transformation from a primary to a secondary potential. If eligible for both, the 1.5% discount is applied first. |
While we do our best to provide accurate information, all rates listed above are to be taken as guidelines. If you need more information or clarification about your specific utility billing situation, please contact your utility company directly.