How it works in Alberta

In Alberta, renewable and small-scale energy projects are governed by the Micro-generation Regulation under the Utilities Act (A.R. 27-2008). This law ensures that individuals, farms, and businesses who generate their own electricity can safely connect to the grid and receive fair credit for the power they produce.

Under this framework, microgeneration includes any small renewable or low-emission energy system that produces electricity primarily for on-site use, such as;

Solar photovoltaic (PV) panels
Small wind turbines
Combined Het and Power (CHP) units
Biogas or biofuel generators
Small hydro or geothermal systems

Two Main Pathways for Albertans

Off-Grid Systems

Off-grid systems are completely independent from Alberta's electricity grid. They use batteries, generators, pr hybrid setups (example, solar and propane or wind and diesel) to store and manage energy locally.

Common in remote farms, cabins and acreages.
No monthly power bills or grid connection fees.
Require higher upfront investment for batteries and back up power.

If you already live off-grid, it's usually more cost-effective to remain that way. Off-grid systems are ideal for rural locations far from power lines or where connection costs exceed $50,000.

Grid-Connected Systems (Net Billing/Microgeneration)

Most Albertans who add renewable energy stay connected to the grid. This allows them to use grid power when needed and send surplus electricity back when they produce more than they consume. This system is called net billing, and it applies to all microgeneration projects including solar, wind, CHP, and hybrid systems.

How Net Billing Works

You generate electricity from your renewable system (solar, wind, etc)
The power first serves your own property (lights, pumps, tools, etc)
Any extra energy automatically flows back to the grid.
Your energy retailer credits you for the exported power (measured in kWh)
At night or during low production, you draw power from the grid again.

Your bi-directional meter (installed by FortisAlberta) tracks both directions, what you import and what you export, and your retailer bills or credits you accordingly.

Example:

A 10-kW solar or CHP system produces 1,200 kWh in June.

You use 900 kWh and export 300 kWh.

If your retailer pays 30¢/kWh for exports, that is a $90 credit on your bill.

When you draw power back from the grid later, you'll offset part of your costs with those credits.