HOW MUCH CARBON CREDITS ARE WORTH
How many Offset Credits you create will depend on how much clean energy your system can generate.
For every 1000 kWh of clean electricity you will make around 0.57 Offset Credits (a rate determined by the Alberta government).
So the bigger your system, the more credits you can expect to make, although generation varies by location and weather. And the more credits you make, the more you get paid.
As a rule of thumb, every 10 kW of system will typically create around 7 Offset Credits a year, and with SOLAR OFFSET, can do this for up to 10 years.
We've included some helpful examples below, and you can get a quick estimate from our calculator.
HOW MUCH YOU MAKE
As administering any system takes roughly the same amount of work regardless of its carbon offset potential, we use a stepped fee structure based on the kW capacity of your system. We take a smaller % as systems get larger, ensuring that we are returning the maximum possible to you, the system owner.
EXAMPLE 1 (System Size: 2 to 7.99kW)
Debbie’s house has a small system that generates 4 credits in 2023. As part of our project pool, Solar Offset brings ALL 4 credits to market. Assuming the market price is $40 (compared to the $50 ceiling), Solar Offset sells these for $160. We then deduct our 50% fee to cover our costs, and Debbie gets a cheque for $80.
EXAMPLE 2 (System Size: 8 to 14.99kW)
Salman’s workshop installs a system that generates 10 credits in 2023.
Joining Solar Offset allows Salman to ensure ALL of his credits are sold in the carbon market. Assuming the market price is $40 (compared to the $50 ceiling), Solar Offset sells these for $400. We then deduct our 45% fee to cover our costs, and Salman receives a $220 cheque.
EXAMPLE 3 (System Size: 15 to 29.99kW)
Meaghan’s system generates 16 credits in 2023. Solar Offset sells ALL of Meaghan’s 16 credits on the market as part of our project pool. Assuming the prevailing market price is $40 (compared to the $50 ceiling), Solar Offset sells these offset credits for $640.
We then deduct our 40% fee and Meaghan gets a cheque for $384.
EXAMPLE 4 (System Size: 30 to 99.99kW)
Travis has a large ground-mounted system on his farm that generates 50 credits in 2024. Again, Solar Offset takes all 50 credits to market within our project pool. Let’s assume the market price is $55 (compared to the $65 ceiling). Solar Offset sells the offsets for $2,750. As it’s a larger system we then deduct a 35% fee and return the remaining $1,787 to Travis.
EXAMPLE 5 (System Size: 100 to 999.99kW)
Sonia’s business decides to install a large system on the roof of her warehouse. It generates 100 credits in 2024 and all 100 credits are sold as part of the Solar Offset project pool. With a market price of $55 (compared to the $65 ceiling), Solar Offset sells the offsets for $5,500. We then deduct a 30% fee and return the remaining $3,850 to Sonia’s business.
To find out more and to calculate your own potential return, click here to use our calculator.
FUTURE PRICE OF CARBON OFFSETS
The Federal Government has announced that, starting in 2023, the price of carbon will rise from the current $50/tonne by $15/tonne, EVERY YEAR, until it reaches $170 per tonne in 2030, as shown below:
The Government of Alberta has stated its intention to match this price increase, to ensure that its made-in-Alberta environmental regulations are accepted by the Federal Government.
It's important to note that carbon offset credits aren't worth the same as Fund Credits. You'll typically find they are worth around 80 to 95%, although this depends on market dynamics.
SOLAR OFFSET pays you, the system owner, a % of the sales price.
This means that as the price of carbon rises, so do the $ you make from your offset credits.