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Originally Posted by photon
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Worth pointing out, you need to sign up before December 31, 2023, because the Government of Alberta is changing the Electricity Grid Displacement Factor from 0.55 to an annually decreasing factor, essentially cutting the carbon credits generated by solar over a 10 year period by 30% below is an excerpt from solaroffset:
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On January 1st, 2024, the Electricity Grid Displacement Factor (EGDF) will decrease!
What is the EGDF? The EGDF is a factor used to calculate the quantity of carbon offset credits generated by an eligible offset project. The EGDF equates to the number of carbon credits created per MWh of solar electricity generation. The value of the EGDF is dictated by the Government of Alberta and it is determined by the forecasted greenhouse gas emissions intensity of the utility grid electricity that will be displaced by solar generated electricity. The EGDF decreases on January 1st of each year due to increasing amounts of renewable energy contributing to the utility grid as well as more efficient fossil fuel generation. This decrease means fewer carbon credits are created per MWh of solar electricity generation.
Why does this is matter? Solar PV systems contracted with Solar Offset in 2023 are eligible to lock in an EGDF of 0.55 tCO2e/MWh (i.e., 0.55 carbon offset credits per MWh of generation) for the full 10-year crediting period. Any solar PV system contracted with us in 2024 or later will be subject to a series of EGDFs, which decrease each year. Ultimately this amounts to 30% less revenue generated from the exact same system if it is registered in 2024 instead than 2023.
For example: Consider a 6KW solar PV system installed and enrolled with Solar Offset in 2023. The revenue to the system owner is considerably higher if they sign with Solar Offset in 2023 compared to delaying until 2024.
Date Agreement signed
Estimated revenue to the system owner (for the full 10-year crediting period)
Dec 20th, 2023
$2,558 - $3,289
January 1st, 2024
$1,738 - $2,234
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