Solar - Frequently Asked Questions (FAQ)

This article will outline the most commonly asked questions regarding solar systems and carbon credits.

Who is the “producer”?

The producer is you!

Whichever entity or person/s owns the solar panels, inverters, etc. is the “producer” that generates renewable energy.

How many credits will I generate? 

Approximately: 

• ½ credit per MW hour of power produced  

• 1 credit for every 2000 kw hours 

• A 5 kW name plate capacity system will generate 4 credits a year 

• For every 1.25kW in nameplate capacity your system will generate 1 credit per year 

How much will I get paid?

All system sizes will have a choice between a fixed price model or a variable price model. Don’t worry if you’ve already signed up with us, you can take advantage of the variable rate too!

Radicle is the only carbon credit developer that is offering this, and the choice is completely up to you! Here’s how the models will work…

Variable Rate – value of credits depends on market price.

Once the credits are developed, Radicle will consult carbon credit brokers in the market to determine what large volumes of credits are trading for – aka the prevailing market price. Radicle will then buy the credits from producers at a 20% discount to that market price per credit, the discount accounts for the cost of aggregating smaller volumes. If the market hits a bump and drops below $20/credit, as it has in the past, Radicle will pay producers a floor minimum of $20/credit.

Fixed Rate – $28 per credit.

Once the credits are developed, Radicle will buy the credits from the producer at a fixed rate of $28 per credit for the entire crediting period, regardless of prevailing market price.

Examples:

Example 1: (Juan, 16 credits, $40 market price)

Juan signed up on the variable rate and his system generates 16 credits in 2024.

Radicle sources the prevailing market price – let’s say it’s $40 – and discounts it 20% for smaller volumes. Radicle will buy each credit for $32.

Juan will get $512 minus commission.

Example 2: (Lily, 50 credits, $55 market price)

Lily signed up on the variable rate and their system generates 50 credits in 2025.

Radicle sources the prevailing market price – let’s say it’s $55 – discounts it 20% for smaller volumes. Radicle will buy each credit for $44.

Lily will get $2200 minus commission.

Example 3: (Mark, 20 credits, fixed price)

Melissa signed up on the fixed rate and her system generates 20 credits in 2024.

Radicle buys the credits at the fixed price rate of $28.

Melissa will get $560 minus commission.

I’ve had quotes for much higher from other companies – what’s up with that?

We’ve been made aware of some companies predicting that the value of carbon credits will increase in line with the federal carbon tax. We are very concerned about this misinformation, as it is misleading to customers. Our goal is to ensure that every eligible person in company with solar panels in Alberta can generate quality credits at a secure price. We always ensure that our estimates are realistic and genuine.

Why would I choose to go with Radicle?

Radicle was a key partner in designing the Alberta carbon market. We have developed and traded more credits than any other company in North America and we are the leader in solar credit development, having registered the most pools.

When will the producer be paid?  

Once a year in Q4 once the credits have been serialized. 

What if I sell my property?

If you no longer own the solar panels, you must notify us (Radicle) of the update as soon as possible. Until and unless an agreement is signed with the new owner, the credit ownership is transferred to Radicle. This ensures regulatory compliance with regard to the environmental attributes of the solar system during the eight-year crediting period.

What is a Site ID?

Per the Alberta Utilities Commission, you can find the unique Site ID assigned to your service on your electricity bill. It may also appear on your Single Line Diagram and/or (Inter)Connection Agreement. Site IDs are 13 digits and often begin "0040" or "0010".

What is a Single Line Diagram (SLD)?

The SLD is a schematic of your solar system that includes details such as panels, inverters, capacity, location. Alberta requires that the SLD is posted on any property on which a solar system is installed and a copy of this diagram is required to participate in this carbon credit program. You can usually find it on or near your electrical panel.

Did you utilize external funding for part or all of your solar system?  

There is a field in the solar carbon credit application form to indicate this – our technical team will then assess the details and let you know if your system qualifies for carbon credits.

The table below provides a high-level overview of the effect on eligibility of some of the most common solar funding sources.

Renewable Energy Certificates (RECs)  

The Alberta protocol for distributed solar energy systems disallows facilities from generating both RECs and carbon credits. Doing so would be a form of double counting – getting two incentives for the same renewable energy. 

The long story short is that RECs are bought and sold to reduce only scope 2 emissions, and don’t reduce emitter’s GHG emissions but convey the use of renewable energy. On the other hand, offsets can reduce scope 1, 2, and 3 emissions in addition to reducing GHG emissions for buyers, so they usually hold more value. 

Radicle doesn’t generate RECs as we focus on offsets, for which there is a more lucrative market in Alberta.  

Retroactive credits for old panels 

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, the 8-year crediting period starts from the “project start date” which is the date that Radicle registers the project, so you will get the full 8-years of credits AND the grid intensity from the start date is locked in for that timeframe too.  

So, long story short is doesn’t really matter than you can’t retroactively claim credits because you’ll get the full amount either way. Wanted to make sure I had passed that info along! 

Eight year offtake agreement  + contract length 

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

Radicle also does most of the admin heavy lift in year one to get the project registered, so we sign 8-year offtake agreements so that we can ensure we will be the credit generator for the full period.

What is a solar ‘pool’? Why is my site being aggregated into a larger project? 

The administrative burden to register a project is quite high. Therefore, except for large scale solar farms, only aggregated projects can be registered with the Alberta Emissions Offset Registry (AEOR). A single home does not represent enough generation to make registration worthwhile or cost-effective.

What is "grid intensity"?

Grid intensity refers to a carbon dioxide emission factor (tCO2/MWh) that compares tonnes of CO2 emissions to generation in megawatt-hours (MWh). As Alberta’s electricity grid transitions from emissions-heavy sources (coal) to lower emission generation sources (natural gas and hydrogen), the grid intensity will decrease, thereby depressing carbon credit prices. 

The grid intensity is adjusted every other year to account for the changes in green energy on the grid – this will happen at the end of 2022. 

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. 

What is verification? 

Verification is the annual process by which inverter data and solar PV systems submit their generation data so that credits can be calculated. Systems are also audited to ensure compliance with the agreement. 

Where are credits traded? Who are they sold to? 

Carbon credits are traded on the open market, and thus the price changes just like stocks. Radicle has a variety of buyers for the credits generated that range in size and industry. 

What is the difference between a carbon tax and a carbon credit?  

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. 

Where can I learn more?

• Alberta Carbon Registries 

• Alberta Registry Listing Page 

• Alberta Government: Quantification protocol for distributed renewable energy generation. Version 1.0