Newfoundland and Labrador
Solar panels in Newfoundland and Labrador
Newfoundland and Labrador power runs about 15.2¢/kWh on the Island system, and systems up to 100 kW qualify for net metering with Newfoundland Power and NL Hydro. Payback typically runs 14–18 years — the province's model rewards offsetting your own use over exporting.
Understand the credit model: NL net metering is a banking system, not 1:1. Surplus is banked and applied to future bills, but any leftover at your annual settlement is bought back at a low wholesale rate. There's no provincial solar rebate and both federal programs are closed, so the value comes from self-consumption.
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Cities we serve in Newfoundland and Labrador
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Newfoundland and Labrador — 0 kW rooftop
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What 0 Newfoundland and Labrador installs tell us
Aggregated from completed Xolar systems across Newfoundland and Labrador — first-hand data, not industry averages. Nothing a competitor can copy.
Because Newfoundland settles surplus at wholesale rather than retail, a system sized to your own annual usage is worth far more than one built to over-produce. Cold, clear winters help panel efficiency, but right-sizing is the decisive factor here.
Newfoundland and Labrador energy & net metering
Consistent across every Newfoundland Power / Newfoundland and Labrador Hydro service area.
How your system works behind the meter
Most of a Newfoundland and Labrador system's value comes from power used behind the meter — electricity your panels make and your home uses on the spot, offsetting energy you'd otherwise buy at 15.213¢/kWh. Only the surplus flows past the meter to Newfoundland Power / Newfoundland and Labrador Hydro for net-metering (banked) credit.
Rebates & incentives in Newfoundland and Labrador
Local, provincial, federal and Xolar in-house — covering all available programs for Newfoundland and Labrador homeowners.
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What Newfoundland and Labrador homeowners say
Newfoundland and Labrador solar questions
Does Newfoundland and Labrador have 1:1 net metering at the retail rate?
No.
Both Newfoundland Power and NL Hydro run net metering as a banking model rather than 1:1 retail crediting.
When your panels produce more than you use, the surplus kilowatt-hours are banked and applied to future bills.
Any surplus still remaining at your annual review is bought back at a wholesale rate — for Newfoundland Power, the same rate it pays to purchase power from NL Hydro — which is well below the retail rate you pay for grid power.
The practical takeaway: size your system to your own annual usage rather than to over-produce.
Do my net-metering credits expire?
Yes.
Credits don’t roll over indefinitely.
On NL Hydro, any unused credited energy is settled on the annual anniversary date of your connection, so the bank resets each year and leftover surplus is paid out at the wholesale rate.
Newfoundland Power settles surplus at the end of its annual review period.
How large a solar system can I install under net metering?
Individual residential systems are capped at 100 kW on both utilities — NL Hydro limits you to 100 kW or the capacity needed to meet your own needs, whichever is lower, and Newfoundland Power also caps installations at 100 kW.
Newfoundland Power additionally notes a province-wide limit where total installed customer-owned generation cannot exceed 5 megawatts.
Eligible generation includes solar photovoltaic (as well as wind, geothermal, biomass, tidal, and wave).
A typical home system sits far below the 100 kW ceiling.
What are current residential electricity rates in Newfoundland and Labrador?
On NL Hydro’s rate schedule, the residential first-block energy rate is about 15.6¢/kWh on the Island Interconnected system (rates are much lower on the Labrador Interconnected system).
Newfoundland Power rates rose an average of 2.3% effective July 1, 2026, driven by higher power-supply costs, though the utility says its rates remain among the lowest in Atlantic Canada.
Are there rebates for home solar in Newfoundland and Labrador?
There is currently no provincial solar-specific rebate in Newfoundland and Labrador — the provincial takeCHARGE efficiency programs cover insulation, air-sealing, heat recovery ventilators, EV chargers, and oil-to-electric conversions, but not solar PV.
The federal Canada Greener Homes Grant closed to submissions at the end of 2025 and the Greener Homes Loan is also closed, so federal solar incentives are no longer available.
The economic case for solar here rests on offsetting your own electricity use.
What's the process to connect a solar system to the grid?
Start before you buy anything.
NL Hydro asks customers to call before purchasing or installing equipment, then submit a Net Metering Interconnection Application Form, sign an Interconnection Agreement, and meet the technical interconnection requirements — with the install completed within two years of approval.
Newfoundland Power uses an eight-step process beginning with an application, followed by utility review, approval, permits, a signed interconnection agreement, and system testing.
There are no application fees, but you cover any costs beyond a standard connection, such as line or service upgrades.
Solar Panels in Newfoundland and Labrador - An Honest Assessment
We’re transparent about Newfoundland and Labrador’s solar economics: production of 949 kWh/kW is the lowest in Canada, and there is no provincial solar rebate. With both federal Greener Homes programs now closed, there are no direct financial incentives for residential solar in NL.
However, Newfoundland Power’s rate has risen to 15.213¢/kWh after two consecutive ~7% increases, with a further 2.25% increase in effect as of July 1, 2026. NL Hydro’s rate-mitigation plan caps future increases at 2.25%/yr. Solar locks in your energy cost for 25+ years, protecting you from these ongoing rate hikes. The typical payback period is 14-18 years, after which you benefit from 7-12 years of near-zero electricity costs.
Solar makes the most sense for NL homeowners who prioritize energy independence, long-term savings, and protection against rate increases.
Newfoundland Net Metering - How It Works
Both Newfoundland Power and NL Hydro offer net metering for solar customers. Within each billing period, excess solar generation offsets your consumption at 1:1 at the full retail rate (15.213¢/kWh).
Important: any surplus credits remaining at your annual anniversary are settled at the wholesale rate – significantly less than retail. This means it’s crucial to size your system to match your annual usage, not exceed it. Systems up to 100 kW are eligible, with a 5 MW provincial aggregate cap.
Solar Panel Costs in Newfoundland and Labrador
A typical residential solar installation in NL costs $2.70 to $3.25 per watt, putting a 8-10 kW system in the $24,000 to $29,500 range. With no provincial rebate, this is the full out-of-pocket cost.
NL homeowners save approximately $1,400/year on electricity with a properly sized solar system. With rates continuing to rise (a 2.25% increase took effect July 1, 2026), annual savings will grow over time.
Adding battery storage provides backup during NL’s occasional storm-related outages – a practical consideration for Atlantic Canada homeowners.
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