You can generate or store electricity for your home or business using alternative energy technologies such as:
- Solar
- Wind
- Biomass
- Small scale hydro
- Battery storage
This is called non-utility generation or distributed energy resources.
You can use the electricity that your system produces and reduce the amount of electricity you buy from us, but in most situations, you will need to remain connected to our grid. This is because your system may not be able to produce electricity 24 hours a day, such as when the sun is down or the wind isn’t blowing.
Excess energy price
If you are generating more energy than you are using, and your generator is less than 100 kW in size, your excess energy can be sold back to us at the excess energy price using net billing.
The excess energy price is $0.05607/kWh until March 31, 2025. This price is updated yearly and reflects the current market value. It is not equal to our electricity rates because our rates must recover service costs, such as:
- transmission;
- distribution;
- customer service;
- safety;
- emergency restoration.
The excess energy price will change from year to year and can vary significantly depending on the market value of excess energy.
The table below contains historical excess energy prices over the last 6 years.
Effective date | Excess energy price ($/kWh) |
---|---|
2024 April 1 | $0.05607 |
2023 April 1 | $0.06546 |
2022 April 1 | $0.05079 |
2021 April 1 | $0.02403 |
2020 April 1 | $0.02949 |
2019 April 1 | $0.03949 |
2018 April 1 | $0.03253 |
Historical average | $0.04030 |
Note: the current $0.05607/kWh excess energy price is higher than the historical average market value for excess energy. There is potential that future excess energy prices will be significantly lower than the price posted today. |
Large generators
If your generator is 100 kW or greater in size your purchase price will be determined on a case-by-case basis. Learn more about selling excess electricity for generators 100 kW or greater.
Payback estimates
The payback period of a non-utility generating system can depend on:
- the total install cost including any financing costs;
- ongoing operating and maintenance expenses;
- your site’s annual energy needs relative to the size and type of system you are installing;
- the quantity of energy used to offset load versus excess sold to us;
- system performance;
- future electricity rates in Manitoba and the excess energy price.
A properly sized system that uses most of the energy generated, rather than selling excess to us, will typically provide a better payback.
Before you invest in a generating system, consider reducing your electricity use by adding insulation, buying energy-efficient appliances, or upgrading your lighting. It is more cost effective to reduce your electricity costs by improving your energy efficiency than by generating your own electricity.
Calculate your payback period
Step 1: Determine your costs
Once you have a quote from your contractor, subtract the value of any federal/provincial grants and rebates from the total cost of your system and add any financing costs. We recommend getting at least 2 or 3 quotes and to be wary of estimates that promise quick paybacks.Step 2: Determine your annual cost savings
Calculate your annual financial benefits, including your avoided electricity usage at your current electricity rate, and add any additional benefits, including any excess energy sold to us.Annual cost savings formula:
(energy produced x percent of energy used x current electricity rate) + (energy produced x percent of energy sold to us x excess energy purchase price)Step 3: Calculate the payback period
Divide the total cost of your system from Step 1 by your annual financial benefits from Step 2 to calculate the number of years it will take for you to achieve your payback.
Contact us
For more information about non-utility generation, email us.
Grid-connected solar photovoltaic systems
Solar photovoltaic (PV) panels installed on roof-tops or mounted on the ground convert the sun’s rays into electricity. Your home or business will use the electricity produced by your solar PV system, and when more energy is generated than you are using, it can be sold to us through net billing.
What to consider before installing solar
To eliminate the need for grid connection you would need to invest in a very efficient home, a larger PV system, a large battery storage capacity and/or a large backup generator (usually fuel-fired) which would be very costly. Retaining grid connection provides the lowest cost method of installing a solar PV system today.
Connection to the Manitoba Hydro grid ensures a reliable supply of electricity when your solar PV system does not generate enough for your needs. Grid-connected solar PV systems can significantly reduce the amount of electricity you buy during daylight hours. How much electricity you buy and sell will depend on several factors including:
- PV system kW size and panel orientation;
- season, time of day, and cloud cover and shading;
- electrical loads currently operating.
Before installing a solar PV system, you should be aware of the time it takes to recover all costs of installation. Learn more on how to calculate a payback period for distributed energy resources like solar.
To understand how various types of solar installations perform and the overall effects of solar capacity on the Manitoba Hydro grid, read our solar PV research study (PDF, 1.8 MB).
For example, on a sunny day a home with a 5-kW system would likely be selling electricity to us when only the lights and refrigerator are operating. However, on a sunny day when a 20-kW electric furnace or a 5-kW electric dryer are operating you would begin purchasing power until the furnace or dryer shuts off. Cloudy, rainy, or snowy days would also require you to purchase power from the grid.
Solar PV electricity production changes throughout the day and reduces dramatically from summer to winter. Electric heat customers need most of their energy in winter when solar PV production is at its lowest due to the short days and the low angle of the winter sun. When solar production is at its highest during long summer days your energy requirements are much lower, resulting in more excess energy being sold to Manitoba Hydro at the excess energy price.
Panel system options
Fixed panel systems facing due south at 40° to 50° inclination achieve better energy output. This is easier to do by using a ground system. A rooftop system is often limited to the direction the roof faces, which is not often due south, and the roof slope, which is generally lower than the ideal inclination. Most ground systems installed in Manitoba to date have been lower cost fixed rack systems.
Solar tracker racks are automated systems that move to track the sun. They can produce up to 25% more energy but cost much more to install and may have ongoing maintenance expenses due to the moving parts. Snow and ice getting into the drive mechanisms could be a challenge in Manitoba.
If you are thinking about installing a grid-connected solar PV system in Manitoba, remember:
- generating your own electricity generally does not mean you will eliminate your electric bill;
- the direction the solar panels face and their angle of inclination will impact performance;
- shade from trees or buildings, snow cover, and dirt will reduce energy production;
- fixed ground systems are generally easier to keep clean/clear of snow and maintain compared to rooftop systems due to better accessibility;
- your system is required to shut down during power outages to ensure the safety of our crews working on power lines;
- solar PV has a greater lifecycle carbon footprint (per unit of energy) than Manitoba’s hydroelectricity, which makes up 98% of Manitoba’s generation.
All solar panel installations need an electrical permit and usually a building permit from your municipality. All electrical work must be done by a licensed electrical contractor and meet the Manitoba Electrical Code.
Questions to ask your contractor
- Does the estimate include taxes, permit costs, a bi-directional meter, electrical service upgrades, and ongoing maintenance?
- What kinds of warranties are provided on labour and product?
- What projected electricity rates are being assumed to calculate any potential payback, including the price paid for excess electricity?
Follow our tips for hiring a contractor to ensure you feel confident in finding a supplier that best fits your project’s needs.
Financing & rebates
Qualifying homeowners may be eligible for financing to assist with the cost of installation through our Home Energy Efficiency Loan.
Learn about Efficiency Manitoba’s solar PV rebate
Homeowners and businesses may qualify for an Efficiency Manitoba rebate when installing a solar PV system.
For more information about grid-connected solar PV systems, email us.