Micro-generation is the production of electricity on a small scale, using renewable and alternative energy sources. Energy sources are typically solar and wind that are generated by individual home owners and small businesses, as well as municipal and community buildings to meet their electricity needs.

Micro-generators receive credits for the electricity they produce but do not consume. Small micro-generators, sized under 150 kilowatts, are credited for the electricity sent back to the grid on a monthly basis at their retail rate.

In 2016, the Micro-generation Regulation was amended to provide more flexibility for rules on how Albertans can generate electricity. Changes include increasing the size limit of a micro-generation system to 5 megawatts from 1 megawatt and allowing a micro-generating system to serve adjacent sites.