Carbon credit pricing isn’t a fixed number. It varies by project type, methodology, vintage, geography, and what a particular buyer is willing to pay. Here’s how to think about it for South African solar VCUs specifically.
How prices are set
Credit prices are agreed with buyers and depend on vintage, intended use, transaction volume, supply and market conditions. A planning scenario linked to a carbon-tax rate is not an achieved sale price or a guaranteed minimum.
What affects the price
A few factors push prices up or down:
- Vintage. The year the credit was generated matters. Recent vintages typically price higher than older ones, especially as Verra and buyers favour more recent emission reductions.
- Co-benefits. Credits with documented social or biodiversity co-benefits often price above standard credits. South African solar credits don’t have major co-benefit premiums currently, but the project type, renewable energy displacing a high-carbon-intensity grid, is well regarded.
- Volume. Large block sales typically price slightly below smaller sales due to volume discounts. Smaller, bespoke lots can carry a premium for buyers who want specific project profiles.
What your proposal will tell you
Your detailed proposal explains the assumptions used in your indicative revenue estimate and the commercial terms offered for your site. Actual revenue depends on the credits issued and sold, proceeds received and the terms of your Client Agreement.
The learn hub gives you the mechanics. The proposal gives you the numbers.