Businesses that start exploring solar energy usually run into two terms fairly quickly: net metering and behind the meter, also known as load displacement. At first, they sound technical, but they simply describe how electricity from a solar system is handled once it is generated.
For companies planning a commercial solar installation, understanding net metering vs behind the meter helps clarify how energy will actually be used. The two approaches affect electricity bills, how power flows through a building, and whether energy storage becomes part of the system.
The difference mainly comes down to where the extra electricity goes when the solar panels produce more energy than the building needs.
How Commercial Net Metering Works?
Most businesses are introduced to solar through commercial net metering.
Imagine a building with solar panels installed on the roof. During sunny hours, those panels may generate more electricity than the building can possibly use. Instead of letting that energy go unused, it flows back to the local utility grid under a net metering agreement.
The utility provider keeps track of how much electricity was exported to the grid, applying it as an energy credit (in kilowatt-hours) directly to your bill. When your building requires power from the grid later, these credits automatically offset your consumption charges.
It works almost like a balance sheet. When solar production is high, the business sends electricity out. When production drops, electricity is pulled back from the grid. Over time the credits help reduce the overall cost of energy.
Many commercial buildings are ideal candidates for this setup, especially those in prime locations for high solar production. Small offices and retail storefronts are perfect examples, they often generate more power than they consume during the day, allowing them to accumulate energy credits that significantly offset their utility bills on cloudy days and during the winter.
How Behind the Meter Solar System Works?
The concept of behind the meter solar works differently.
In this type of system, the electricity generated by solar panels stays on the customer’s side rather than being exported to the grid. The energy is used inside the building or stored for later use.
A Commercial Battery Energy Storage System (BESS) can store extra solar electricity during the day and release it later when the building needs it. Instead of relying on the grid to earn energy credit, the building manages its own energy more directly and serves as an emergency backup during unpredicted power outages. Also, the battery acts as a reserve of electricity that can be used during periods when solar panels are not producing enough power.
Behind the meter has become a common energy strategy in Canada as battery technology has improved and more businesses look for ways to take control of every kilowatt-hour the solar energy system produces.
Many Canadian businesses are adding commercial energy storage to their premises; see how these systems perform in our real-world case studies.
The Real Difference Between the Two
When comparing net metering vs behind the meter, the difference is fairly simple. Both approaches rely on solar panels to generate electricity, but they manage surplus energy in different ways.
Choosing the right program can be a challenge for many businesses. Why not start by exploring the solar energy rebates offered by your local government? These generous incentives can dramatically offset the upfront installation costs and accelerate the payback period.
Regardless of your business type, or whether you choose net metering or a behind the meter system, you may also qualify for a federal tax credit of up to 30%.
Peak Shaving and Commercial Energy Costs
One of the main reasons companies install behind the meter battery storage is to control electricity demand.
Commercial electricity bills often include demand charges. These charges are based on the highest level of electricity use reached during a billing period. Even a short spike in demand can increase costs.
That is where peak shaving commercial strategies come in.
With a battery system installed behind the meter, a building can draw stored electricity during periods of high demand. Instead of pulling all that power from the grid at once, the battery helps supply part of the load.
A real case in British Columbia, a multi-family building stores solar energy during the daytime and uses it to power HVAC systems, lighting, and plumbing during peak periods or after the sun goes down.
Over time this approach can reduce peak demand and make electricity expenses easier to manage.
Choosing the Right Path: Net Metering vs. Behind the Meter
Deciding which model to follow depends entirely on your operational “DNA.”
- Commercial Solar Net Metering is best if: Your business is open 9-to-5, like offices and schools, your energy use is steady, and your local utility offers generous credit rates for exported power.
- Behind the Meter Solar is best if: You operate 24/7, like restaurants, hospitals, residential buildings, you face high demand charges, or you want the security of a backup commercial energy storage system during grid outages.
As solar adoption continues to grow, understanding these two models helps businesses design efficient energy systems that better match their operations and long-term energy needs. Not sure which energy strategy fits your business? Talk to our energy experts today.
