Green Alberta Energy | Frequently Asked Questions

Is Green Alberta Energy affiliated with the Government of Alberta?

No. We have no affiliation with the Government of Alberta. All of our programs are privately funded and we do not receive any subsidies whatsoever.

Wondering how we fund our programs without government help? Take a look.

If I green 100% of my energy consumption, does that mean I do not use any electricity generated by fossil fuels?

Not exactly. When you green a percentage of your electricity consumption, we purchase and retire Renewable Energy Certificates (RECs) on your behalf. Once electricity is generated and placed on the grid, it is impossible to tell which electrons were generated through renewable energy and which were generated using conventional methods. We purchase RECs equivalent to your consumption. Your purchase guarantees that clean, renewable energy is being placed onto the electric grid, raising the percentage of renewable energy used overall.

How do I green my energy consumption?

In order to green a percentage of your home or farm's electricity consumption, you must sign up for service with one of the Energy Marketers affiliated with Green Alberta Energy. When you sign up, there will be an option on the online sign up form to green all or some of your electricity consumption. Already a customer of one of our Energy Marketers? Login to My Account and identify how much you would like to green.

I am not signed up with an Energy Marketer affiliated with Green Alberta Energy, can I still purchase RECs from you?

Yes. Albertans who wish to green their business operations, event, or other special occasion can contact our Customer Care Team by phone at (403) 726.9694 or by email (customercare@greenalbertaenergy.ca) specifying how many RECs you would like to purchase.

How much will greening my consumption cost?

You are in control. Let us know the percentage of your monthly consumption that you want to green and we will apply this percentage to your actual billed consumption (kWh multiplied by the percentage you want to green). Green energy costs 1.66 cents/kWh. Use our handy green calculator to estimate how much this will mean for you.

As an example, if an average residential consumer uses 600 kWh per month and greens 25% of their monthly consumption, it would cost about 8 cents per day.

How much should I green?

You can choose to green as much of your electricity consumption as you want from 5% all the way up to 100%. Just green what you can afford, every little bit helps. If you choose a special “Green Rate” that has a minimum percentage requirement for green energy, you must green at least the percentage of electricity specified to qualify for the rate.

Do you offer any benefits for micro-generators?

Yes. In 2019 we launched the Solar Club™, a new program designed specifically for small solar micro-generators in Alberta. Membership in the club provides a number of benefits including special electricity rates, flexible rate plans, cash back, and free Renewable Energy Certificates (RECs). Click here to learn more.

Carbon Offset Credit Platform FAQ

What is a carbon offset credit?

A carbon credit (aka carbon offset) is a tradable certificate that represents a one-tonne reduction in or removal of carbon dioxide or carbon dioxide equivalent (CO2e). Carbon credits are generated from projects, such as your solar system, that prevent emissions that would have taken place without the project.

How many credits will my system generate?

System generation will depend on several factors (panel tilt, number of sunshine hours, etc.) so the figures below are approximates based on ideal generation conditions:

1 credit for every 2,000 kWh (i.e. a system that generates 10,000 kWh annually will earn approximately 5 credits)
For every 1 kW in nameplate capacity, your system will generate approximately 0.7 credits (i.e. a 10 kW system will generate approximately 7 credits per year)

How much will I make per credit on a variable price?

Carbon is a commodity, and the market price is based on demand and supply. As the market price for carbon changes, your annual return from the program will adjust accordingly.

Solar Offset and Rewatt Power sell your carbon offset credits into the market each year of the program, returning to system owners a percentage of the market sale rate per credit (see "What are 'Commission Costs'?" for more information) over the program period.

Radicle buys your carbon offset credits each year of the program, paying systems owners a discounted market price, less commission costs (see "What are 'Commission Costs'?" for more information) over the program period.

How much will I make per credit on a fixed price?

Our fixed price for carbon credits is $28. As a Producer, you will be paid $28 per credit minus a 40% commission. This price has been deemed fair given the fluctuations in the market risk over the 8-year period.

What is the price of a solar offset credit, and how should I think about pricing?

A fixed price aggregator takes your gains in exchange for less risk. A variable price aggregator shares in your gains in exchange for market risk.

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/ per tonne of carbon dioxide equivalent emissions (tCO2e) in 2022.

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

What are "Commission Costs"?

The Commission Costs are split between the Aggregators and us, and cover the administrative burden of managing the program, including the cost of independent third-party audit as required by government.

If you select a variable price through Solar Offset, the Commission Cost varies according to your system size. Find out how much you can make with Solar Offset's program by completing a no-obligation sign-up to receive an estimate for your system: www.solaroffset.ca/sign-up

If you select a fixed price for your carbon credits, the Commission Cost is 40% of the $28 per carbon credit, which means you get to keep 60% of the value of each credit.

If you select a variable price through Radicle Balance, the Commission Cost is 40% followed by a discount on the market price of 20% (see "How does pricing work on the 'Floor Price' model?" for more information).

If you select a variable price through Rewatt Power for your carbon credits, the Commission Cost is a flat 25%.

Rewatt drives competitive pricing and quality through automation so you must have an inverter or metering device that Rewatt supports.

The list of devices that Rewatt supports can be found here.

How does pricing work on the "Floor Price" model?

Here are a few examples to illustrate how the floor price model works.

Example 1: Juan – 16 credits - $40 market price

Juan signed up on the variable rate and has a house with 16 kW capacity – he generates 16 credits in 2023. The development fee of 40% of the credits is taken off as commission (6.5 credits). There are 9.5 credits remaining. Radicle sources the prevailing market price ($40) and discounts it 20% for smaller volumes. Radicle will buy each credit for $32. Radicle buys the 9.5 credits from Juan at the discounted market rate ($32). Juan gets a cheque from UTILITYnet for $304 total.

Example 2: Lily – 50 credits - $55 market price

Lily signed up on the variable rate with a 50 kW system, she generates 50 credits in 2024. The development fee of 40% of the credits is taken off as commission (20 credits). There are 30 credits remaining. Radicle sources the prevailing market price ($55) and discounts it 20% for smaller volumes. Radicle will buy each credit for $44. Radicle buys the 30 credits from Lily at the discounted market rate ($44). Lily gets a cheque from UTILITYnet for $1,320.

Example 3: Lucille – 20 credits - $10 market price

Lucille signed up on the variable rate and generates 20 credits in 2023. The development fee of 40% of the credits is taken off as commission (8 credits). There are 12 credits remaining. Radicle sources the prevailing market price and, due to a crash in the market (we believe this to be unlikely, but a possibility nonetheless) it falls to $10. Radicle guarantees Lucille a floor price of $20 per credit, so Radicle will buy each credit for $20 even though they’re only worth $10. Radicle buys the 12 credits from Lucille at the floor price of $20. Lucille gets a cheque from UTILITYnet for $240.

Who are your Aggregators?

Our Carbon Offset Credit Platform is partnered with three aggregators: Solar Offset, Radicle Balance, and Rewatt Power. Through Solar Offset, you can choose variable pricing for your carbon credits. Through Radicle Balance, you can choose fixed pricing for your carbon credits. Through Rewatt Power, you can choose variable pricing for your carbon credits.

You can make your choice based on variable versus fixed pricing models, Commission Costs, and ease of credit generation and reporting.

How do I choose between variable and fixed pricing?

Just like with your electricity and natural gas, this will depend on your risk tolerance. If you would prefer a guaranteed price for your carbon credits, then our fixed price is the way to go. If you would prefer the going market rate for your carbon credits, and are comfortable with fluctuations in the market, then our variable pricing is the option you should select.

Can I sign up for both fixed and variable pricing?

No, it is important for all system owners to recognize that if you sign up to more than one project, you will get paid only from the one you sign up to first. During the verification process, your system ID will be cross-referenced with other projects, and you will be eliminated from one of the projects and receive only a return from the one to which you signed up initially.

Can I switch to the variable rate if I've already signed up for the fixed rate?

You sure can! For those customers already signed up under a fixed price model, they will have until October 1, 2022 to decide whether to switch to Radicle's variable price model.

Please note that you can only switch with the same aggregator (for instance, you cannot switch from Radicle's fixed rate model to Solar Offset's or Rewatt Power’s variable price model).

Why is the term so long?

The Alberta registry requires the entity that registers the project (the Aggregators) to report on that project for the full crediting period.

When will I be paid?

You will be paid within 60 days of the sale of the offsets to third parties, and UTILITYnet shall pay you (the Producer) within 10 days of receipt of funds from the Aggregator. The dates of payment are determined by the date on which the project is registered, which varies between Aggregators.

Are carbon credits the same thing as Renewable Energy Certificates (RECs)?

No, carbon credits are different from RECs. A Renewable Energy Certificate represents 1 megawatt-hour (MWh) of green energy being injected into the grid. You cannot generate both carbon credits and RECs, as the protocol does not allow it – this would be double-dipping, getting paid twice for renewable energy generation.

Where are carbon credits traded?

Carbon credits are traded on the open market in Alberta and elsewhere, and thus the price changes just like stocks. They're typically bought by large businesses in a private transaction.

What is verification?

Verification is an independent, third-party audit process completed to international standard ISO 14064-3, during which the generation data and other information collected by the Aggregators is checked for compliance with government rules. Without passing the verification, no credits can be created.

What is serialization?

Once a credit is generated, it is given a unique serial number (serialization). Credits are then traded on the market, purchased, and then "retired" to ensure there is no double counting and that a credit can only be used once.

Carbon credits vs carbon tax, what's the difference?

Carbon credits represent a one-tonne reduction in carbon dioxide or carbon dioxide equivalent, whereas the carbon tax represents a pollution price per tonne of carbon dioxide equivalent emitted. The carbon tax rates are based on global warming potential factors and emissions factors used by Environment and Climate Change Canada.

How will I know if I'm eligible to participate?

After you select and register for a program online, the Aggregators will assess your project and determine if you qualify. You will not need to wait until the verification process to know if you're eligible to participate in our Carbon Offset Credit Platform.

What if part of my system was paid for using grant funding?

Simply indicate that this is the case on the registration form, and the program Aggregators will assess the details and let you know if that part of your system qualifies.

Can I get retroactive credits for an existing system?

Credits cannot be serialized retroactively on solar projects in Alberta, so the years that the panels have been generating in the past won't qualify. However, systems already installed can generate credits from future production.

What is grid intensity (aka Electricity Grid Displacement Factor, EGDF)?

Grid intensity (also known as Electricity Grid Displacement Factor, EGDF) refers to the greenhouse gas emissions associated with electricity from the Alberta grid. It is measured in units of tonnes of carbon dioxide per megawatt-hour (tCO2/MWh). It is the rate at which your solar PV system can generate offset credits. The EGDF is set by the Alberta Government, who review it periodically. As Alberta's electricity grid transitions from emissions-heavy sources (coal) to lower emission generation sources (natural gas and renewables), the EGDF will decrease.

Why does EGDF matter?

The EGDF for your system depends on the year in which the project is registered. If you join an aggregation project, which starts generating offset credits before 2024, your EGDF will be fixed for the duration of the term. If you join an aggregation project that registers in 2024 or later, you will be subject to a decreasing EGDF each year of the program term. So, if you have a system already installed, it is to your advantage to secure your place in an aggregation pool as soon as possible.

Why is my site being aggregated into a large project?

The administrative burden to register a project is quite heavy, so only very large projects can be cost-effectively registered with the Alberta Emissions Offset Registry (AEOR). A single home does not represent enough generation to make registration worthwhile or cost effective without aggregation.

What happens if I sell my home? Will I continue to be paid for credits generated?

With Solar Offset, if you sell your home, either you can terminate the agreement, or you can assign it to the new homeowner to ensure they get value from future offset credits. In either case, you are entitled to receive value from your offset credits generated up to the point of the sale of your property. You simply notify Solar Offset that you have sold your property, provide your new address and system data up to the point of sale, and you’ll receive any payment you are due.

With Radicle, if you sell your home, ownership of the credits transfers to Radicle Balance, who will assume ownership of credits generated until the end of the term or until a new agreement is signed with the new homeowners. Payment will only be made to the new homeowners if they sign an agreement with Radicle Balance.

What happens if I change my utility provider?

Signing an agreement with one of the Aggregators has no impact on your choice of utility provider. You can change electricity providers at any time during the term and your business relationship with the Aggregator, as well as your participation in our Carbon Offset Credit Platform, remains unchanged.

Frequently Asked Questions