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.

1. 1 credit for every 2,000 kWh (i.e. a system that generates 10,000 kWh annually will earn approximately 5 credits)
2. 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)

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

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.