The rooftop solar market in New Brunswick, Canada, has been expanding quickly, but two proposed changes from NB Power could make it much harder for families to justify putting panels on their homes.
CBC News, citing NB Power data, reported that the number of connected solar customers rose from 465 in spring 2023 to 2,138 three years later. But that rapid growth could slow if two newly announced changes move ahead.
First, CBC News reported that NB Power will end incentives of up to $3,000 for home solar systems. At the same time, the Canadian utility is seeking approval from the Energy and Utilities Board for a new rate structure that would change how solar customers buy and sell electricity.
Solar households are currently credited and billed at the same retail rate: 15.39 cents per kilowatt-hour. Under the proposal, solar customers would pay 9.22 cents per kilowatt-hour for the electricity they use and receive 6.77 cents per kilowatt-hour for excess power they send back to the grid.
A new demand charge could have the biggest effect. It would bill customers based on their peak electricity use between 7 a.m. and 10 p.m. on weekdays, adding a new cost that industry advocates said could significantly erode the value of rooftop solar.
For many homeowners, solar is already a major upfront investment. Removing a rebate and changing the payback calculation at the same time could make that decision much more difficult, especially for families who need predictable savings to make the numbers work.
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Households that invested in solar to lower their bills may find the financial benefits shrink, particularly if they use electricity during high-demand weekday hours.
Chris Meechan, spokesperson for Solar NB Solaire, a group for installers, manufacturers, and solar customers in the province, said the changes could have "serious negative implications."
Industry voices are already pushing back. Solar NB Solaire has warned that the combined effect of ending rebates and adding new costs could make residential solar far less attractive.
"It's going to have serious negative implications," Meechan said, per CBC News. "Making technology uneconomical … I'm sorry, it's backward thinking, right?"
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