Industry group warns that proposed adjustments could slow the adoption of residential photovoltaic systems.
The rapid expansion of residential solar energy in New Brunswick may encounter significant headwinds. According to data from N.B. Power, the number of households with grid-connected solar systems has surged from 465 in the spring of 2023 to 2,138 as of mid-2026 - a more than fourfold increase in just three years.
However, this growth trajectory is now threatened by two proposed changes from the provincial utility.
End of Incentives and New Fee Structure
First, N.B. Power has announced the elimination of financial incentives of up to $3,000 for new residential solar installations, effective May 27, 2026. Second, the utility has requested approval from the Energy and Utilities Board to introduce a new demand charge, which would alter how solar customers are compensated for excess power fed back to the grid.
Under the current net metering program, residential solar producers receive credits at the same retail rate (approximately 15.39 cents per kWh) for the electricity they supply to the grid. The proposed changes would create a two-tier system: solar customers would be charged 9.22 cents per kWh for power they consume, but receive only 6.77 cents per kWh for power they export.
Demand Charge Raises Concerns
More significantly, the proposed demand charge would impose a new fee based on each customer's highest rate of electricity usage between 7 a.m. and 10 p.m. on weekdays during any given month. The utility has proposed a rate of $13 per kilowatt for this peak demand.
For a typical residential solar owner, this could translate to a substantially higher monthly bill. One system owner cited in the original report experienced a peak demand of nearly 18 kilowatts, which would result in a demand charge exceeding 230underthenewproposal-potentiallyaddingaround230underthenewproposal-potentiallyaddingaround240 to their monthly costs compared to the current system.
Industry Response
Chris Meechan, spokesperson for Solar NB Solaire - an industry group representing installers, manufacturers, and solar customers in the province - stated that the combined changes would have "serious negative implications" for solar growth. He characterized the move as "backwards thinking" that could make solar technology uneconomical for many homeowners.
According to Solar NB Solaire, the proposed demand charge model is not currently used by any other Canadian utility. The group is calling for a pause on the changes to allow for proper consultation with the public and industry stakeholders.
Utility's Position
Brad Coady, N.B. Power's chief commercial officer, explained that the current net metering framework was designed to nurture early-stage market growth and was never intended to be sustainable over the long term. "The market has now moved beyond an entry or a nascent market, and now it's starting to hit more mainstream. So, the time to make it sustainable is today," Coady said.
He also noted that the new demand charge would encourage residential solar owners to invest in battery storage systems, allowing them to store excess power for use during peak hours and reduce their demand charges.
Grandfather Period and Next Steps
The proposed changes include a 10-year grandfather period for customers already registered in the net metering system or those who apply by November 1, 2026. A hearing before the Energy and Utilities Board is expected in late summer or fall of this year.
Source: Adapted from CBC News (Erica Butler, May 26, 2026)
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