Posted on Apr 6, 2016
Micro-generation is the production of heat or electricity, on a very small scale, typically for domestic use, using environmentally friendly methods such as solar panels, small-scale hydro, wind, biomass, micro-cogeneration, geothermal, and fuel cells.
Customers are provided more choices for how to source their electricity.
The local wire service provider, also called the distribution company, looks after connecting a micro-generator’s system. Individual micro-generators do not have to pay for the ordinary and reasonable costs of interconnection and meter infrastructure as these costs are shared by all customers in the distribution company’s service area. This is monitored by the Alberta Utilities Commission to ensure costs passed on to the customers are fair.
The customer's electricity retailer must manage the administration and billing of the excess energy sent into the grid. This saves the micro-generator customer direct and indirect administration costs. Credit is received for electricity supplied to the grid, which allows customers to obtain value for every kilowatt-hour (kWh) they generate and don’t use.