Installing Micro-Generation

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Alberta energy regulations implemented in 2009 have made it easier for Albertans to generate their own electricity. This is option allows you to reduce your reliance on Alberta's electricity grid, contribute to developing green energy in Alberta, and may help you save money on your electricity in the long run.

Find out more about the Alberta micro-generation regulations

Micro-Generation in Alberta: Checklist

If you would like to install a micro-generation unit, first make sure that your project meets the following requirements:

  • If has generating capacity of 1 MW or less
  • It is sourced from renewable or alternative energy (such as solar panels, small-scale hydro, wind, biomass, micro-cogeneration, geothermal, and fuel cells) that emits less than 418 kg/MWh GHG
  • The generating unit is located on your property, or on a site that you lease that is adjacent to your property
  • The generation is intended to meet all or a portion of your electricity needs

To become a micro-generator you must submit an application to their distribution company to get a permit for connecting and operating a generating unit. However, before submitting this application, the AUC recommends that customers consult their micro-generation guide, which explains in greater detail the steps involved. In brief, the steps are as follows:

  1. Notify your distribution company of your intention to install a micro-generation unit
    Find your electricity distributor
  2. Learn about and get necessary municipal permits for construction
  3. Consult with an electrical contractor
  4. Notify your electricity retailer that you are planning to start micro-generation. Your electricity retailer must register you so that they can apply proper credit for exported electricity
  5. Ensure that micro-generation equipment is in line with local and provincial safety requirements
  6. Prepare a site plan

Installing a Micro-Generation Unit: What's Next

The Alberta Utilities Commission (AUC) has published a guide to micro-generation for customers interested in setting up their own electricity generation unit.

Please note that the following is a simplified description of the steps involved in installing your micro-generation unit.

Once you have completed these steps you are ready to submit your application. You can find the application form in the AUC guidelines, or you should be able to find it on the website of your local distribution company. Depending on your electricity generation source, you may need to prove that your generation will not exceed the 418 kg/MWh GHG allowance (this applies to biomass, fuel cells or any other alternative energy source that is not solar, hydro, or wind). Once they have verified that the application meets regulations they will make an estimate of the technical requirements and costs involved, which they will send to you. If you accept this, you can start obtaining electrical permits and construction. You will also have to sign an interconnection agreement with your distribution company.

If you are applying for wind installation you may need to have a noise impact assessment done as part of your application. Also note that wind generation is not permitted in some municipalities.

Once your micro-generation unit has been constructed, your distribution company will then install a new, bi-directional meter. Large micro-generators must receive a bi-directional interval meter, and small micro-generators can receive either a bi-directional cumulative meter or a bi-directional interval meter. The difference between the two is that the interval meter allows you to receive credit for excess electricity at wholesale market prices instead of at retail rates.

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You should also keep your electricity retailer informed of your progress in installing micro-generation capacity. You will have to agree upon how you will receive credit for excess electricity. As is outlined in the Regulation, if you are a small micro-generator you have the options of coming to your own (between you and your retailer) agreement for the credit rate, receiving credit at the retail rate for electricity, or at wholesale market prices. Large micro-generators have the option of reaching their own agreement with the energy retailer regarding rates, or otherwise receive credit at the wholesale market prices.

The AUC is responsible for resolving any disputes that you might encounter throughout the process.