Alberta micro-generation and net billing, explained

What micro-generation means in Alberta

Alberta's Micro-generation Regulation lets homes, farms and businesses produce their own electricity from renewable or alternative sources, such as solar, connect it to the grid, and receive credit for any surplus they send out. It falls under the province's Electric Utilities Act, and the Alberta Utilities Commission (AUC) sets the detailed rules that utilities follow.

The idea is simple. Your system is meant to supply some or all of your own yearly electricity use. It is not meant to be a power plant selling into the market. That principle shapes how big your system can be and how you are paid for exports.

Most homes and small businesses fall into the small micro-generation category. Larger systems have a separate category with different metering and credit rules. Your installer and the wire owner will confirm which applies to you.

Net billing, not net metering

In some places, a solar meter simply runs backward. Alberta does not work that way. It uses net billing: the electricity you import and the electricity you export are measured separately, and each is valued on your bill.

Here is what that means in practice:

• Solar power you use in your home at the moment it is made never touches the meter. It simply reduces what you buy.
• Surplus exported to the grid earns a credit, generally valued at the energy rate in your retail contract.
• Energy you import at night and in winter is billed normally, including delivery charges.
• Credits appear on your bill from your retailer. How long they carry forward, and whether any are paid out, depends on the rules in effect and your retailer's terms.

Choosing a retailer and a rate

Because export credits are tied to your energy rate, your retail plan matters. Some retailers offer plans designed for solar customers. Others may not. Before you sign anything, ask:

1. What rate are exports credited at, and is it the same as my import rate?
2. Can I change rates between seasons, and are there fees or limits?
3. How are unused credits handled at the end of a billing period or contract?
4. Is the rate fixed or floating, and for how long?

Offers and rules change, sometimes from one year to the next. Treat any payback estimate as a range, and compare current plans before your system is switched on.

How the application works

Connecting a system involves your installer, the permit authority, the wire owner and your retailer. The order matters.

1. Design. The system is sized against your past electricity use. Twelve months of bills are the starting point.
2. Notice to the wire owner. A micro-generation application goes to the company that owns the local distribution wires. In Edmonton that is EPCOR; in many rural areas it is FortisAlberta or another utility.
3. Electrical permit. Issued by the City of Edmonton or your local permit authority.
4. Install and inspect. The system is installed by a licensed electrician and inspected as required.
5. Metering. The wire owner installs or programs a meter that records both directions.
6. Billing. Your retailer begins applying export credits.

Sizing rules and common misunderstandings

Because micro-generation is meant to offset your own consumption, a system sized far beyond your historical use may be questioned. If you are adding an EV or heat pump, your installer can explain how expected new load is handled. See sizing a home solar system.

• "I will get a cheque every month." Usually not. Credits typically offset charges on your bill.
• "Solar will cover my delivery charges." Delivery charges are calculated separately and generally still apply to the energy you import.
• "My panels will run during an outage." Not a standard grid-tied system. See home battery storage in Alberta.

Changing or adding to a system later

Your approval is for the system as it was described in the application. If you later add modules, change inverters or add a battery that can export, the wire owner usually needs to be told, and a new electrical permit is typically required. Check with your installer before buying extra equipment.

The same applies if you sell the home. The new owner takes over the generating system, and the retail account and micro-generation records need to be updated in their name. Keep your approval letter, permit and as-built drawings with the house documents.

Farms and businesses follow the same basic process, with a few extra considerations. Sites with several meters, or with generation on a different parcel from the load, need careful design so the system qualifies. That conversation is best had before any equipment is ordered.

Let us handle the paperwork

Our solar micro-generation service covers the design, the wire owner application, the permit, installation and coordination through to metering. For businesses, see commercial solar.

If you are just starting, read solar power basics for Alberta homes first.

Common questions