How many credits you can make depends on the amount of energy your site produces. In Alberta the number of credits you are entitled to create is calculated using a simple formula:

Number of credits, stated in metric tons of CO2-equivalent emissions (tCO2e) = Megawatt hours x Emissions Factor

So, let’s say your site produces 1,000 megawatt hours in solar energy this year. With the current emissions factor set at 0.53 (2023), this would entitle you to create 530 credits.

Solar offsets credit prices (“Credit Price”) in Alberta trade 15 – 30% lower than the federally-regulated price of carbon (“Carbon Price”). For example,  the Carbon Price was $50/tCO2e in 2022. As a result, some buyers bought credits at the high Credit Price of $43/tCO2e in Alberta.

Credit Prices fluctuate with market-demand, however they have increased because the Carbon Price has risen due to environmental mandates and federal pressure. In fact, the Carbon Price is mandated to increase $15 per year until it reaches $170 in 2030.

What influences the difference between the Carbon and Credit Prices? 

• Emitters are mandated to pay for their emissions. They want to pay a lower Credit Price, than the higher Carbon Price. 
• The mandated Carbon Price increases are pushing the Credit Prices up. But a change in federal government could stall this. In this case, the Alberta provincial government could impose Carbon pricing.  
• Emitters are looking for newer projects and larger bulk purchases of credits. Newer credits are more valuable.
• Older generation credits typically have lower Credit Prices, as are smaller batches of credits. This is one reason it’s valuable to work with aggregators like Rewatt: the larger pool of credits can attract larger buyers looking for more volume.

The credit offset period is the timeframe when your site is entitled to create solar offsets. For solar emissions offsets in Alberta this period is ten-years as of 2023.

It’s important to understand that this period begins when your site is first attached to a project (a regulatory vehicle) NOT when your site is first operational.

We require an exclusive contract with sites over their offset period. In practice this means that if you onboard a site to Rewatt Market and begin to create credits with us, then this site will exclusively create credits through Rewatt for its ten year term.

Once the credit creation period is over, if you wish to remain on the platform, you can choose to create and sell renewable energy certificates (RECs).

You own the right to your environmental credits, so long as you haven’t given or traded them away. This is usually not a problem unless you received grant funding or participate in other environmental programs.

It depends. Some grants require that you transfer the rights to the environmental credits produced from your solar project, while others do not. The answer will be in the terms and conditions you signed. Contact us if you have questions about eligibility.

Note: We look for a clause in your contract that “conveys environmental attributes” or “conveys environmental credits” to the government.

Funding that enables eligibility for carbon credits:

• Canada Greener Homes Grant (NRCAN)

• Growing Alberta

• Green Inclusive Building Grant (GICB)

• Pre-2019 Alberta Municipal Solar Program (MCCAC) (Please check your terms and conditions because a switch occurred halfway through 2019)

• Growing Forward 2 (Alberta On-Farm Solar PV Program)

• Clean Energy Improvement Program (CEIP)

Funding that restricts environmental attributes, making a system ineligible for carbon credits:

• Residential and Commercial Solar Program (EEA) aka NDP Grant

• Post-2019 Alberta Municipal Solar Program (MCCAC) (Please check your terms and conditions because a switch occurred halfway through 2019)

• City of Edmonton Change Homes for Climate Solar Program (Solar Rebate Program)

• City of Edmonton Building Energy Retrofit Accelerator program

• Emissions Reduction Alberta Grant (ERA)

  • Energy Savings for Business (ESB): Comprehensive Energy Savings Program

• Renewable Energy Certificates (RECs)

• City of Medicine Hat’s HATSMART Program

Adding new sites or expanding the capabilities of existing solar sites can extend the offset period for an additional five years.

While both solar offset credits and RECs incentivize positive environmental impact, these instruments differ in some material ways:

• the owner of one carbon offset has the right to claim responsibility for removing or preventing one tonne of CO2 from entering the atmosphere
• the owner of one renewable energy credit (REC) has the right to claim responsibility for bringing 1 megawatt (MWh) of renewable energy onto the electrical grid.

Since the purpose of these instruments differs, demand for them differs too. For sellers it is important to appreciate that one solar offset credit tends to trade at a higher value than one REC on an energy equivalent basis.