Net Metering & Microgeneration Explained: A Comprehensive Guide to Going Solar in Alberta
Introduction: Why Go Solar in Alberta?
Alberta is one of Canada’s most promising regions for solar energy, boasting an abundance of sunshine throughout the year. As energy costs continue to rise and environmental concerns become more pressing, more Albertans are turning to solar power to reduce their electricity bills and their carbon footprint. Whether you’re a homeowner, a farmer, or a small business owner, understanding the benefits of solar energy and the microgeneration regulations in Alberta can help you make an informed decision about going solar.
What is Microgeneration?
Microgeneration refers to the small-scale production of electricity from renewable and alternative energy sources. In Alberta, solar power, also known as Solar Photovoltaic (PV), is the most common form of microgeneration. This technology allows you to harness the power of the sun to generate electricity, which you can use to meet your own energy needs, with any excess electricity being sent back to the grid.
Types of Microgeneration in Alberta
The Alberta government has established the Micro-Generation Regulation to guide how small-scale and large-scale electricity generation systems are implemented. Under this regulation, microgenerators fall into two categories:
Small-Scale Micro-Generators: These systems are less than 150 kilowatts (kW) and are commonly used in residential homes, farms, and small businesses. These are the systems most people think of when considering solar power for their property.
Large-Scale Micro-Generators: These systems range between 150 kW and 5 megawatts (MW). They are typically used for larger commercial operations or industrial applications, where more significant amounts of electricity are needed.
The Path to Becoming a Micro-Generator
If you’re considering solar power, the process to become a micro-generator in Alberta is straightforward, but it requires careful planning and adherence to specific regulations. Here’s how you can get started:
Identify Your Distribution Company: The first step is to locate your electricity distribution company on your electricity bill. This company is responsible for delivering power to your home and will be your primary point of contact throughout the microgeneration process.
Kickstart the Process: Send us your electricity bill, and we’ll notify your distribution company of your intent to become a micro-generator. This initial step is crucial in beginning your transition to solar power.
Follow Alberta Utilities Commission (AUC) Guidelines: The AUC has established specific guidelines for microgeneration. These include consulting with a certified electrical contractor, obtaining necessary municipal permits, and preparing a detailed site plan. We can assist you in meeting all these requirements.
Submit Your Application: Once your site plan is prepared and your permits are obtained, you’ll need to submit your completed application through the AUC e-filing system and to your distribution company. This step officially registers your intent to generate your own electricity.
Sign the Interconnection Agreement: After your application is approved, you’ll need to sign an interconnection agreement with your distribution company. This agreement governs how your solar system will connect to the grid, ensuring the safe and efficient transfer of electricity between your home and the power network.
Installation and Activation: With the paperwork complete, your solar system can be installed. Once installed, your distribution company will provide you with a bi-directional meter that tracks your energy production and consumption. After everything is set up, your system will be activated, and you’ll begin generating your own electricity.
Benefits of Microgeneration and Solar Power
Choosing to become a micro-generator offers numerous benefits, both financially and environmentally:
Reduced Energy Costs: By generating your own electricity, you can significantly lower your monthly energy bills. Any excess power you produce can be sold back to the grid, earning you credits that further reduce your costs.
Energy Independence: With solar power, you are less dependent on the fluctuating costs and availability of electricity from the grid. You can take control of your energy future by producing what you need.
Environmental Impact: Solar power is a clean, renewable energy source. By going solar, you reduce your reliance on fossil fuels, contributing to the fight against climate change.
Increased Property Value: Homes with solar power systems often see an increase in property value. Buyers are increasingly interested in properties that offer energy efficiency and lower utility costs.
Government Incentives: There are various incentives and rebates available for those who choose to install solar panels. These can help offset the initial costs of your system, making solar power more affordable than ever.
Understanding Net Billing in Alberta
One of the most attractive features of microgeneration is the ability to participate in net billing. Net billing allows solar energy system owners to sell the electricity they don’t use back to the grid. Here’s how it works:
Monthly Credits: Each month, the electricity you produce and send to the grid is credited to your account. These credits can be used to offset the electricity you consume from the grid, reducing your monthly bill.
Annual Compensation: If, at the end of the year, you still have unused credits, your retailer is required to compensate you financially. This means you get paid for any excess electricity your system produced, providing an additional financial benefit.
Seasonal Solar Rates: During the sunnier months, when your system is likely producing more electricity than you need, you can activate a seasonal solar rate of 30¢/kWh. This higher rate applies to both the electricity you import and export, maximizing your earnings during peak production times. As the days grow shorter and you consume more electricity than you produce, you can switch back to a fixed rate, ensuring you get the best deal year-round.
Electricity Bills with Solar
Enmax
Spot Power
Alberta’s Renewable Energy Goals
Alberta is committed to increasing the amount of green energy produced in the province. The Renewable Electricity Act has set a target of achieving 30% renewable electricity by 2030. This commitment is backed by interim targets, which include:
15% by 2022: This target has already been met, demonstrating the province’s dedication to renewable energy.
20% by 2025: As we approach this milestone, more Albertans are turning to renewable energy sources like solar power.
26% by 2028: The continued expansion of renewable energy projects, including residential and commercial solar installations, will help Alberta reach this goal.
These targets reflect Alberta’s broader strategy to reduce greenhouse gas emissions and promote sustainable energy production.
Option A: Sticking with Utility Company (Rent Your Power)
If you choose to stay with your traditional utility company, you’ll continue to pay for electricity the same way you always have. Here’s what that looks like:
Power Generation: Your utility company generates electricity using a mix of renewable and non-renewable resources. You’re charged for the electricity you use in your home.
Transmission: Electricity is transmitted from power plants to distribution substations via high-voltage transmission lines. This adds transmission charges to your bill.
Distribution: Your local distribution company facilitates the delivery of electricity from the grid to your home, adding distribution charges.
Additional Fees: On top of your energy usage, you’ll also pay various fees, including admin fees, local access fees, rate riders, and taxes.
Monthly Utility Bill: You receive a monthly utility bill that includes all these charges, along with the cost of the electricity you’ve used.
Option B: Going Solar (Owning Your Power)
Investing in solar power offers a completely different approach to meeting your energy needs:
Solar Panels: Your solar panels harness the power of the sun, converting UV rays into direct current (DC) electricity.
Inverter: This DC electricity is converted into alternating current (AC) by an inverter, making it usable for your home’s appliances and systems.
Powering Your Home: The electricity generated by your solar system powers your home, reducing or eliminating your need to draw power from the grid.
Energy Tracking: A bi-directional meter monitors your energy production and consumption, ensuring you know exactly how much electricity you’re generating and using.
Selling Excess Energy: Any surplus electricity that your system generates is automatically sent back to the grid. You earn credits for this excess energy, which can be used to offset your future electricity costs.
Grid Backup: If your solar system doesn’t produce enough electricity to meet your needs (such as on cloudy days or at night), you can still draw power from the grid, ensuring you always have the energy you need.
Making the Choice: Utility vs. Solar
Choosing between sticking with your utility company or investing in solar power depends on your goals, budget, and long-term energy needs. If you’re looking for immediate cost savings, energy independence, and the ability to contribute to a cleaner environment, going solar is the clear choice. However, if you prefer the simplicity of staying with your current provider and are not ready to make an upfront investment, you may decide to stick with your utility company for now.
Get Your Free Solar Quote Today!
Are you ready to take control of your energy future and start saving money on your electricity bills? Contact us today for a free, no-obligation solar quote. Our team of experts will guide you through the entire process, from selecting the right system to installation and activation. Don’t wait—start generating your own clean, renewable energy and enjoy the benefits of going solar in Alberta.
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