NB Power has filed an application with the New Brunswick Energy & Utilities Board proposing changes to the province’s Net Metering program. These changes have not yet been approved, but because they could affect anyone considering solar, we wanted to make sure you have the information early.
We don’t believe in waiting until the last minute to talk about important changes.
Whether you decide to install solar this year, next year, or simply continue researching, we’d rather you have the complete picture.
What is being proposed?
The proposal would replace today’s Net Metering program for new applicants with a new Net Billing model.
Today’s Net Metering
Today’s program is simple.
If you purchase 1 kWh of electricity from NB Power, you pay the residential electricity rate. If your solar system sends 1 kWh back to the grid, you receive a credit for that same amount of energy. It’s essentially a 1:1 energy exchange, making it easy for homeowners to offset their annual electricity use.
Proposed Net Billing
Under the proposed Net Billing model, that changes.
Instead of receiving a full retail credit for electricity you export, the electricity you sell back to the grid would be credited at a lower export value based on NB Power’s avoided cost methodology. At the same time, the residential rate structure would also change to include:
- A monthly service charge
- An energy charge
- A demand charge
The proposal also includes a transition period. Customers who apply for Net Metering on or before October 31, 2026, and complete their installation by October 31, 2027, would remain under today’s Net Metering program for a proposed 10 years, ending March 31, 2037.
One of the biggest proposed changes: Demand Charges
One change that hasn’t received much attention is the proposed demand charge.
Unlike today’s residential electricity bill—which is based almost entirely on how many kilowatt-hours (kWh) you use—a demand charge looks at how much electricity your home draws at one moment in time.
Imagine you’re making dinner while the oven is on, the dryer is running, the dishwasher starts, your EV begins charging, and your heat pump kicks on.
Even if that only lasts 15 minutes, your home may briefly draw 12–15 kW from the grid.
Under the proposed rate, your bill would include a charge based on that single highest demand during the billing period. At the proposed rate of approximately $13 per kW, one evening of high electricity use could add well over $150 to your monthly bill. That’s why managing when and how electricity is used, becomes much more important under this proposed rate structure.
Why does this matter for solar?
Solar panels help reduce the amount of electricity you buy from the grid. Demand charges, however, are based on how quickly electricity is being used at any one moment.
That means:
- A sunny afternoon may reduce both your energy use and your peak demand.
- But your highest demand often happens after sunset, when solar production is low and several appliances may be running at once.
- This is where battery storage can become increasingly valuable, allowing you to supply your home during those peak moments instead of drawing as much power from the grid.
What should you do?
At this point, nothing. The proposal is still working its way through the regulatory approval process, and details could change before any final decision is made.
Our goal isn’t to create urgency. Our goal is simply to make sure you have the same information we do, so you can make the decision that’s right for your home.
If you are curious whether battery storage could help reduce future demand charges, we’d be happy to prepare a complimentary solar and battery assessment for your home. Simply book a free assessment now.
This information was gathered from the NEW BRUNSWICK ENERGY AND UTILITIES BOARD RATE DESIGN APPLICATION PHASE 2 – EVIDENCE – Matter # 0529