New Brunswick’s energy landscape is evolving, and recent proposals from NB Power could significantly impact how Saint John residents and businesses manage their electricity. On April 30, NB Power filed the next phase of its Rate Design Modernization plan with the New Brunswick Energy and Utilities Board (NBEUB), introducing key updates to the Net Metering Program.

As solar energy adoption grows across the province, these proposed changes aim to ensure the grid remains reliable, sustainable, and fair for all customers. Here is a breakdown of what these updates mean for you.

Addressing Cross-Subsidization

One of the primary drivers behind the proposed changes is the issue of cross-subsidization. Currently, solar customers reduce their energy purchases and receive credits for the power they export. However, they still rely heavily on the grid during peak times—such as cold winter mornings when solar production is low. Because their payments may not fully cover the infrastructure costs they depend on, these expenses are shifted to non-participating customers.

NB Power’s updates are designed to ensure that all customers contribute fairly to the cost of maintaining the grid, while solar users continue to receive fair value for the energy they export.

New Demand Charges for Residential Customers

To better reflect how customers use the grid, NB Power is introducing a demand charge for residential customers. Instead of focusing solely on total energy consumed, this charge measures the maximum electricity required during a full hour. This ensures that customers contribute to the fixed costs of maintaining the system, which do not decrease just because a customer uses less energy overall.

By separating demand from energy charges, the new structure encourages customers to manage when and how they use electricity, ultimately helping to reduce system peaks.

Expanded Opportunities for Saint John Businesses

In a major win for local enterprises, NB Power is proposing an increase to the maximum size of non-residential solar systems. The cap will be raised to 500 kW, with exceptions considered for systems up to 1 MW. This expansion provides Saint John businesses and institutions with greater flexibility to invest in renewable energy and lower their long-term operational costs.

A 10-Year Grandfathering Period

If you have already invested in solar panels, there is no need to panic. Existing net metering participants, as well as those approved before the new changes take effect, will be grandfathered under the current rules for up to 10 years. This transition period offers stability and predictability for early adopters.

For more detailed information on the filing, you can read the full update on NB Power’s official blog.

Frequently Asked Questions

What is peak demand and why is it important?

Peak demand refers to the time when the electricity system is under the greatest stress, which in New Brunswick typically occurs on cold winter mornings. Because solar generation is low during these times, the grid must still be fully equipped to handle the high demand, making it essential to recover the costs of maintaining this infrastructure.

Will current solar customers see an immediate change in their bills?

No. Existing net metering participants and those approved before the changes are implemented will remain under the current billing structure for up to 10 years.

How do the proposed changes benefit commercial customers?

The proposal increases the maximum allowable size for non-residential solar systems to 500 kW (and up to 1 MW in some cases), allowing businesses to generate more of their own power and make larger investments in renewable energy.