Solar is increasingly becoming an attractive option for homeowners in Canada. It is commonly known that a grid-tied solar system can be used to reduce your yearly energy costs while reducing the amount of carbon emissions tied to your electricity use. However, did you know that Albertans can possibly receive additional financial benefits from carbon credits attributed to your installed solar system?
We will explain how to monetize your solar system to its highest potential below.
What are carbon credits?
Carbon offset credits and renewable energy credits are mechanisms designed to facilitate companies reducing their carbon footprint and approach sustainability goals, even if their business is inherently carbon emitting.
These credits reflect activity that is deemed sustainable – such as activity that removes greenhouse gases from the atmosphere, or produces green energy – which can be used to counterbalance emissions generated over the threshold.
These types of credits create a revenue stream for projects that are a net positive for the planet, like reforestation, waste management. etc.
With companies and governments all over the world committing to the goal of carbon neutrality, these credits have become a lucrative business, incentivizing global projects that encourage green energy production and the reduction of carbon emissions.
Residential microgeneration and offset credits
It is important to note that the process of creating credits is more extensive than just producing green energy – the process involves quantifying and documenting the information pertaining to a solar or wind energy system, where it will need to be verified completed by the respective governing body, which is the Alberta Emission Offset Registry operated by the CSA group
Which upon completion of the verification, will turn your solar energy into a solar offset credit. Then, the company you partner with will buy your offset credit from you, so they can sell it to a company to reduce their carbon footprint.
The amount of carbon offset by an individual home microgeneration system is too little for them to offset industrial emitters individually, so companies in this sector create an “aggregation pool” of home microgeneration, which makes it possible to create an economy of scale.
Renewable energy credits and offset credits: What’s the difference
Renewable energy credits and offset credits apply to different types of sustainable behaviour. They are defined as the following:
- One Offset credit = one tonne of CO2 removed.
- One REC = 1 MWh of clean energy generated.
You cannot count some project or activity both an offset and a REC – it is effectively double dipping. In terms of the solar credits that Albertan companies will pay for, your contributions are rewarded for generating clean electricity that offsets electricity that was produced with fossil fuels.
Eligibility
Albertans with solar have to meet certain criteria to be able to sell their carbon credits. These restrictions include:
- You are connected to the Alberta electricity grid
- You still possess the rights to your credits.
- The solar site started generation after Jan 2, 2012.
- It is within the company’s eligible guidelines for amount of energy produced (varies from company to company).
- Any additional eligibility requirements, as established by the company.
How do I know if I can sell my offset credits or not?
For many Albertans who went solar, you should be able to sell your offset credits to one of the many companies that buy them in the province.
However, there are certain grants and funding opportunities That will preclude you from selling any offset credits, or mean you have already transferred these credits to another entity. The reason is that for some of these agreements, you might have already forfeited the carbon credits your system would generate.
For example, the Change Homes for Climate rebate program available for residents of Edmonton states that the City of Edmonton will own your carbon credits in perpetuity if you accept the rebate.
If you are shopping around for solar rebates, grants, or other financing options for your solar installation, or you are looking into whether or not you can sell your solar offsets, the information will be in the terms and conditions within the financing you receive.
Look for a section in the fine print of the legal terms and conditions of any solar grant titled “environmental attributes” – this is where the granting body will claim any of the “environmental attributes” or “environmental credits”, or in other word, your offset credits, that you would receive from your grant-funded installation.
However, many of the loans or incentives available will not claim your credits, including the Greener Homes loans and grants.
What happens if I move?
You can choose to terminate your agreement or pass it on to the next homeowner.
Solar Carbon Offset Companies
The Solar Carbon Offset is a new industry, so as of our latest update, there are only three companies offering the chance for you to sell your environmental attributes in Alberta.
Re(source) Energy
Re(source) Energy
View Re(Source) Energy’s siteIncorporated in 2021, Re(source) Energy is a carbon credit company that buy offset credits from residential microgeneration sites and offers them for sale on Alberta’s carbon market. Albertans who own a grid-tied solar energy that is under 5 MW can sign up to monetize their environmental attributes. You can receive an estimate here for a estimate of the value your credits are worth.
ReWatt Power
ReWatt Power
View ReWatt Power’s siteReWatt Power is a financial tech company based in Calgary that was one of the first to offer solar offsets to Albertans. ReWatt is an easy company to work with, with the application only taking about 5 minutes to fill out. Microgenerators in Alberta are eligible if their systems is less than 5 MW capacity, and your inverter system is present on this list. You can calculate an estimate for how many solar offset credits your system can produce here.
Solar Offset
Solar Offset
View Solar Offset’s siteSolar Offset is a company that has been selling residential solar credits since 2022, and have been one of the first in Alberta to offer residential microgenerators money for their attributes.
Microgenerators in Albera are eligible if their system is between 4 kW and 5 MW in size, however Solar Offset can work with larger sites individually, and are invited to reach out to the company with information about your system.
You can receive an estimate for how many credits your system will receive here.
