Written by Ernest Yap
Residential owners want to know their estimated earnings from Alberta solar carbon credits. At Rewatt, we don’t want to put up barriers, and we strive for transparency about your earnings and fees. Here is what we estimate:
As a residential homeowner in Alberta, you could earn up to $3,200 from carbon credits over 8 years for a 10kW solar array.
A 10kW system is roughly 600 square feet of solar panels, which fits on a suburban Canadian home’s roof. This generates about 12MWh of energy in Alberta, which is enough for you to sell a bit of energy back to grid during the summer.
To break it down, here are some estimations for expected earnings to aggressive earnings:
- 2022: $194
- 2023: $234 – $288
- 2024: $279 – $342
- 2025: $324 – $396
- 2026: $369 – $450
- 2027: $405 – $450
- 2028: $405 – $504
- 2029: $338 – $510
Your total earnings over 8 years:
$2547 (Expected case) or
$3242 (Aggressive case)
These estimates already account for the 25% sales transaction fee for microgenerators. There are no other fees.
What is the difference between the “expected” and “aggressive” earnings for Alberta solar carbon credits?
The expected case is based on carbon credit prices using historical trends. Rewatt believes that an Alberta solar carbon credit will be sold at prices 35% lower than the Canadian carbon price. We assume prices will hit a ceiling at $90 per credit by 2027 because buyers don’t want to pay above that price.
The aggressive case is based on selling Alberta solar credits at prices 20% lower than the Canadian carbon price. There is no ceiling on the price of credit.
Frankly, we will be adjusting the expected and aggressive cases year by year. For example, the 2022 carbon price is $50/tonne of CO2e, but we’ve been selling credits for $43/tonne of CO2e. That’s even better than our aggressive case!
Why are earnings increasing every year until 2030?
We predict that the selling prices of Alberta carbon credits will mirror the increases of the regulated Canadian carbon price. In 2022, the Canadian price is set at $50/tonne of CO2e, and it is mandated to increase $15/tonne every year until it reaches $170/tonne by 2030.
The carbon credit price is dictated by buyer demand, which is why it is variable year by year. Alternatively, the price of Alberta carbon credits could hit a low too. However, for the residential homeowner, this is a matter of earning more or earning less from Alberta solar carbon credits: there is no risk of losing money.
Why have 100s of residential and commercial owners with solar missed out of thousand of dollars of earnings from carbon credits?
Homeowners often don’t know about carbon credits because it was not built for them. The carbon credit market is built to accelerate the construction of wind and solar farms at the large, utility scale. Consequently, the costs of recording data and paying for credit verification make it too expensive and time consuming for small generators do do it by themselves.
What Rewatt Power does is aggregate hundreds of small generators into a “collective power plant” to generate carbon credits. Rewatt acts as the broker to sell the collective’s credits to regulated buyers at the highest price. As a result, the collective power plant can share costs, take advantage of volume power, and earn revenue they couldn’t earn before.
Ready to Join Rewatt’s Alberta Solar Credits Program?
If you’re a residential owner and you want earnings from Alberta solar carbon credits, apply to the program here!
If you have questions, feel free to contact us. Let’s accelerate the transitions to low-carbon energy together.