PCS TR 003 Renewable Electricity Generation_v1.0

Document Control

Document identification

• Document code: PCS-TR-003

• Title: Renewable Electricity Generation – Solar Photovoltaic (PV)

• Scope: Grid-connected Solar PV (utility-scale and distributed, subject to applicability conditions)

• Crediting outcome: Emission reductions (tCO2e) through displacement of grid electricity generation

Version history and change log

Version	Date	Status	Summary of changes	Prepared by	Approved by
v1.0	TBD	Draft	Initial release for review	PCS Secretariat	TBD

Governance note on versioning and archiving

Only the latest approved version of this methodology shall be used for new project registrations. Superseded versions shall be archived and retained for traceability, including for projects registered under earlier versions where applicable, consistent with PCS governance rules.

Purpose and scope summary

Purpose

This methodology establishes requirements and procedures to quantify GHG emission reductions resulting from electricity generated by solar photovoltaic systems that deliver electricity to a defined grid, thereby displacing grid electricity generation.

Scope summary

This methodology applies to grid-connected PV systems where electricity delivery is measurable at a verifiable crediting boundary and a PCS-approved grid emission factor is available for the relevant grid and monitoring year. Configurations that cannot demonstrate verifiable and conservative electricity delivery, or that include fossil generation contributing to credited electricity under v1.0, are not eligible unless explicitly approved via PCS deviation or a later methodology version.

Methodology overview

Emission reductions for a monitoring period are quantified ex-post as the difference between baseline emissions and project emissions and leakage (where applicable). Baseline emissions are calculated by multiplying the net electricity delivered at the crediting boundary by the PCS-approved grid emission factor for the applicable grid and year. Project emissions are generally zero for PV-only projects where net export is measured at the POI; where auxiliary electricity imports are not netted in delivered electricity, those imports are quantified as project emissions using the same PCS-approved grid emission factor. Leakage is assumed to be zero unless a credible and material leakage pathway is identified.

Normative references

Document code	Title	Role in this methodology
PCS-FR-001	Program Framework	Defines program principles, governance expectations
PCS-MN-002	Program Manual	Defines processes and operational requirements
PCS-PS-004	Project Standard	Defines eligibility and core project requirements
PCS-VVS-005	Validation & Verification Standard	Defines assurance requirements for VVBs
PCS-DC-008	Avoidance of Double Counting & Corresponding Adjustment	Defines claim integrity and Article 6 treatment
PCS-ESS-006	Environmental & Social Safeguards Standard	Defines safeguards requirements
PCS-SDG-007	Sustainability & SDG Integrity Standard	Defines SDG claim integrity requirements
PCS-CN-002	Grid Emission Factors	Defines EF publication and application requirements
PCS-PP-013	Program Processes	Defines procedural governance and controls

Chapter 1 - Scope and applicability

1.1 Purpose and rationale

1

This methodology establishes requirements and procedures to quantify greenhouse gas (GHG) emission reductions from electricity generated by solar photovoltaic (PV) systems that supply electricity to an electricity grid. The emission reductions represent the difference between baseline emissions from grid electricity generation that would have occurred in the absence of the project and the emissions attributable to the project activity, after applying PCS rules on monitoring, conservativeness, and avoidance of double counting.

2

The methodology is designed to be applied under the Planetary Carbon Standard (PCS) to support consistent and auditable quantification across project types and jurisdictions. It is structured to align with PCS program documents, including the PCS Project Standard, PCS Validation and Verification Standard, PCS Avoidance of Double Counting and Corresponding Adjustment requirements, and PCS grid emission factor requirements.

1.2 Scope of covered activities

The methodology applies to solar PV projects that generate electricity through photovoltaic conversion of solar radiation and deliver that electricity to a defined electricity grid. For the purpose of this v1.0 methodology, the grid-connected scope includes both utility-scale and distributed PV systems, provided that electricity delivery can be measured at a verifiable metering boundary and the baseline emission factor can be determined using PCS-approved grid emission factors.

The methodology covers the emission reduction pathway where solar PV electricity displaces grid electricity generation. It does not cover life-cycle emissions associated with equipment manufacturing, construction, or upstream supply chains. Such life-cycle emissions are excluded from quantification under this methodology because PCS crediting is based on monitored operational displacement of fossil electricity generation, unless PCS establishes a specific life-cycle accounting module in future versions.

1.3 Applicability conditions

A project may apply this methodology only if it meets all of the following conditions.

1

Grid connection and baseline definition

• The project shall be connected to an electricity grid for which a PCS-approved grid emission factor is available or can be derived under PCS-approved procedures.

• The grid must be defined in a manner that is consistent with PCS grid boundary rules and that can be unambiguously referenced in monitoring and verification documentation.

2

Metering boundary and measurability

• The project shall define a clear electricity delivery boundary and demonstrate that electricity delivered at that boundary is measurable using metering that meets Chapter 9 requirements.

• Preferred boundary: point of interconnection (POI) with the grid where net electricity exported is recorded.

• Where the POI meter is not feasible (e.g., aggregated distributed systems), the methodology may be applied only if the delivery boundary is verifiable and aggregation does not overestimate delivered electricity.

3

Data integrity and audit trail

• The project shall maintain a complete and auditable data trail for electricity generation/delivery, meter calibration and maintenance, and grid emission factor versioning.

• The monitoring system shall allow an independent VVB to reconcile reported annual net electricity delivered against raw meter records and supporting operational logs.

4

Credited electricity must be solar-derived

• Electricity claimed shall be generated by the solar PV system.

• If other generation sources exist within the same facility boundary (including battery storage charging from the grid or fossil backup), the project shall demonstrate that credited electricity is not inflated by non-solar sources.

• Where verifiable data segregation is not possible, the project is not eligible under v1.0.

5

Eligibility under PCS Project Standard

• The project shall meet all general PCS eligibility requirements (project identification, ownership, authorization, additionality, stakeholder engagement, safeguards, SDG integrity, avoidance of double counting).

• This methodology provides quantification rules that operate alongside PCS program-wide requirements.

1.4 Included project configurations (v1.0)

This methodology includes the following configurations, subject to Section 1.3 applicability conditions:

• Utility-scale PV plants with net export metered at the POI and auxiliary consumption netted or separately monitored.

• Distributed PV systems (rooftop, aggregated units) where electricity delivery to the grid or under net metering can be verified via utility bills, aggregated meter statements, or approved conservative metering protocols.

• PV systems supplying electricity under a PPA where settlement meters provide verifiable delivered electricity data.

1.5 Excluded project configurations (v1.0)

Excluded configurations under v1.0 include:

• Off-grid PV projects (no defined grid displacement baseline).

• Mini-grid and isolated grid projects (fuel-based baselines not covered).

• Hybrid projects with regular fossil generation within the same system boundary.

• Projects claiming emission reductions solely via REC ownership or contractual instruments without physical electricity delivery and verifiable metering.

1.6 Greenhouse gases and sources included

The methodology quantifies emission reductions primarily in CO2 through displacement of grid electricity generation. The PCS-approved grid emission factor may include CO2, CH4, and N2O depending on EF construction rules. Separate quantification of CH4 and N2O is not required unless PCS mandates gas-specific reporting for a given grid factor. Project emissions are generally zero for PV-only projects except where auxiliary electricity imports are counted as project emissions.

1.7 Crediting period and start date

Crediting period length and renewal rules follow the PCS Project Standard. Crediting start date shall not precede the commercial operation date (COD) and shall be consistent with PCS registration and validation requirements.

COD is the earliest date with verifiable continuous electricity delivery under normal operations. For utility-scale: grid synchronization, utility acceptance, first continuous settlement meter records. For distributed: interconnection approval and initial billing/net-metering records.

1.8 Methodological conservativeness principle

Apply the methodology conservatively. Where choices exist, select options that do not overestimate emission reductions. Conservativeness applies through metering requirements, conservative data gap treatment, and reliance on PCS-approved grid emission factors.

1.9 Relationship with other PCS documents

Use this methodology alongside PCS program documents: PCS Project Standard (eligibility), PCS Validation & Verification Standard (assurance), PCS Avoidance of Double Counting & Corresponding Adjustment (claims), PCS safeguards and SDG standards (non-quantified integrity requirements).

1.10 Required deliverables for applying this methodology

Minimum submission to demonstrate compliance with Chapter 1:

• Project configuration and grid connection description.

• Identification of metering boundary and arrangement.

• Grid definition for emission factor selection.

• Explanation and conservative approach for any non-standard configuration (e.g., distributed aggregation).

Chapter 2 - Definitions

Unless otherwise specified, definitions in the PCS Program Framework, PCS Project Standard, and PCS Program Manual apply. This chapter provides methodology–specific terms for monitoring, verification, and issuance.

2.1 Interpretation rules for definitions

Definitions in this chapter are normative. Where a term exists in PCS program documents and in this methodology, the PCS program definition applies unless this methodology provides a more specific interpretation. Boundary-dependent definitions must be explicitly stated in project documentation and applied consistently.

2.2 Defined terms

1. Auxiliary electricity consumption (AE): electricity consumed by equipment enabling PV generation/export (inverters, transformers, tracker motors, station service loads). Relevant when not netted from electricity delivered.

2. Baseline emissions (BE_y): GHG emissions that would have occurred in the absence of the project for the electricity service provided during monitoring period y; calculated as EFgrid,y × EG_y.

3. Commercial operation date (COD): earliest date of verifiable continuous electricity delivery under normal operations; evidenced by commissioning/acceptance and first settlement meter records.

4. Data gap: any period with missing/invalid/unverifiable monitoring data; subject to conservative substitution rules.

5. Distributed solar PV system: multiple small-to-medium generating units aggregated for the project; aggregation must be verifiable and conservative.

6. Electricity delivered (EG): quantity (MWh) used for baseline emissions—net electricity exported to the grid at the defined POI or delivery boundary; where not directly metered, EG = GE − AE.

7. Electricity grid (the grid): defined electricity system to which the project is connected; must correspond to PCS grid emission factor boundary.

8. Emission reductions (ER_y): net GHG reductions: BE_y − PE_y − LE_y, expressed in tCO2e.

9. Grid emission factor (EFgrid,y): PCS-approved emissions factor (tCO2e/MWh) for the applicable grid and year.

10. Gross electricity generation (GE): electricity generated by PV before deduction of auxiliary consumption and internal losses.

11. Inverter-based measurement: inverter monitoring used as secondary check; not a substitute for revenue-grade metering unless PCS approves.

12. Leakage (LE_y): emissions outside the project boundary attributable to the project; assumed zero unless credible and material pathway identified.

13. Metering boundary: point where electricity delivery is measured for crediting (preferred: POI export meter).

14. Monitoring period (y): period for which ER is quantified and verified (annual or multi-year per PCS).

15. Net electricity export: export to the grid after deduction of auxiliary consumption and internal losses; used as EG where export meters measure net export.

16. Point of interconnection (POI): electrical connection point to the grid; typical POI for utility-scale is interconnection substation; for distributed projects could be customer or utility meter.

17. Project emissions (PE_y): emissions within project boundary attributable to operation (e.g., auxiliary imports if not netted). For PV-only with POI net export, PE is typically zero.

18. Revenue-grade meter: meter meeting national/international billing/settlement standards; documented calibration and tamper protection.

19. Solar photovoltaic (PV) system: PV modules and balance-of-system components for generation and export.

20. Tamper evidence: physical/procedural controls demonstrating monitoring data integrity (seals, access logs, audit trails).

2.3 Notation and units

• Energy quantities: MWh (kWh to MWh: ×0.001).

• Emission factors: tCO2e/MWh.

• Emissions and ER: tCO2e.

Notation must be consistent across equations.

2.4 Abbreviations

• COD: Commercial Operation Date

• POI: Point of Interconnection

• GE: Gross electricity generation

• AE: Auxiliary electricity consumption

• EG: Net electricity delivered/exported

• EFgrid,y: Grid emission factor for grid and year y

• BEy: Baseline emissions during year y

• PEy: Project emissions during year y

• LEy: Leakage during year y

• ERy: Emission reductions during year y

• VVB: Validation and Verification Body

Chapter 3 - Project boundary

This chapter defines the physical and GHG boundaries. Boundary definitions are normative and must be applied consistently.

3.1 Principles for boundary setting

Establish a boundary so electricity delivery attributable to the PV system is measurable, verifiable, and not overstated. Include any relevant project emissions that could materially affect quantification. Provide a narrative and a schematic/single-line diagram identifying meter locations.

3.2 Physical boundary

3.2.1 Utility-scale grid-connected PV systems

Includes PV array, DC collection, inverters, AC collection, transformers, switchgear, interconnection facilities up to and including crediting meter(s) at the POI or other PCS-accepted boundary. Include monitoring/DAU equipment (meters, SCADA). Specify and document crediting meter location consistently.

3.2.2 Distributed solar PV systems

Includes all PV generating units, interconnection points, and metering arrangements used for measurement. Crediting boundary may be customer meters, utility net-metering meters, or another accepted aggregation boundary—must be verifiable and conservative. Prevent double counting with other programs.

3.2.3 Excluded equipment and activities

Excludes upstream manufacturing, transport, construction, and downstream grid infrastructure beyond POI.

3.3 GHG boundary

3.3.1 Baseline emissions boundary

Baseline emissions are from grid electricity generation displaced by the project's net delivered electricity. Use the same grid boundary as the PCS-approved emission factor.

3.3.2 Project emissions boundary

Project emissions occur within the project boundary. For PV-only projects, PE is normally zero if net export is measured at the POI. If imports from the grid supply auxiliary loads and are not netted in EG, quantify them per Chapter 7. Fossil fuel combustion within boundary is not eligible under v1.0 unless approved.

3.3.3 Leakage boundary

Leakage are emissions outside the project boundary caused by the project. Assumed zero unless credible and material.

3.4 Crediting boundary and metering hierarchy

Preferred approach: direct measurement of net export at POI using revenue-grade export meter. Alternatives (gross generation minus auxiliaries, settlement meters, net-metering statements) accepted only if verifiable, conservative, and accepted by VVB/PCS.

3.5 Boundary consistency and change control

Apply boundaries consistently across monitoring periods. Material changes to boundaries or metering arrangements require PCS post-registration change procedures and documentation to demonstrate continuity/comparability.

3.6 Boundary description requirements for project documentation

Validation submission must include: PV configuration, location of crediting and auxiliary meters, grid connection point and identifier, and data systems. Schematic/single-line diagram must match narrative and show measurement points.

Chapter 4 - Baseline scenario

This chapter defines the baseline scenario and rules for identifying baseline electricity generation displaced by the project.

4.1 Baseline scenario objective

The baseline represents the most plausible electricity supply that would occur absent the project. For grid-connected PV projects, baseline emissions are quantified by applying the PCS-approved grid emission factor to the net electricity delivered.

4.2 Baseline scenario description for grid-connected solar PV

Baseline scenario: continued operation and dispatch of grid-connected power plants supplying the grid. The emissions intensity is represented by the PCS-approved grid emission factor for that grid and year.

4.3 Baseline scenario identification and applicability

For v1.0, the baseline is grid electricity generation for a defined grid with a PCS-approved emission factor. Projects not connected to such a grid are not eligible in v1.0.

4.4 Grid definition and alignment with emission factors

Identify the applicable grid per PCS grid emission factor boundary classification. Do not select a grid/sub-grid solely to increase the emission factor. Follow PCS instructions on boundary updates and emission factor application.

4.5 Treatment of electricity delivery arrangements

Key requirement: net electricity delivered is measurable and attributable without overstatement. Conservative default: only net electricity exported to the grid is credited unless PCS explicitly permits behind-the-meter self-consumption crediting through a verifiable protocol accepted by VVB/PCS.

4.6 Interaction with renewable energy certificates and other instruments

Project must disclose participation in RECs, feed-in tariffs, green tariffs, or compliance programs and demonstrate exclusive claim rights consistent with PCS avoidance of double counting rules.

4.7 Baseline scenario documentation requirements

Validation documentation must identify the applicable grid, provide evidence of connection, and identify the PCS-approved grid EF source to be applied. Describe electricity delivery arrangement and metering boundary and justify conservativeness.

Chapter 5 - Additionality

This chapter sets requirements for demonstrating project additionality under PCS rules.

5.1 Additionality principle

A project is additional if, without PCS incentives and carbon revenue, it would not have been implemented at the same scale/timing. Demonstrate via regulatory surplus test, investment analysis, and common practice assessment (or a PCS-approved simplified pathway where applicable).

5.2 Regulatory surplus test

Requirement

Demonstrate the activity is not required by law/regulation or legally binding order. Include direct and indirect obligations.

Required evidence

Provide regulatory analysis with citations; where uncertain, include legal opinions or authority letters.

Outcome

If the test fails, project is not eligible under this methodology.

5.3 Investment analysis

Objective and requirement

Demonstrate the project is not financially attractive without carbon revenues; analysis must be transparent and evidence-based. Include sensitivity checks.

Acceptable financial indicators

NPV, IRR, LCOE, or equivalent accepted by PCS with justification.

Benchmark selection rules

Benchmarks must be reasonable and evidenced; do not select benchmarks to make project appear unattractive.

Required data and documentation

Include CAPEX, OPEX, financing terms, generation assumptions, degradation, PPA details, etc.

Treatment of subsidies/incentives

Include all incentives transparently and conservatively.

Prior consideration and timing

Provide evidence that carbon finance was considered prior to implementation where required.

Sensitivity analysis and robustness

Include ranges for key parameters.

Investment analysis conclusion

Project passes if it is not attractive without carbon revenue relative to a justified benchmark.

5.4 Common practice assessment

Objective

Evaluate whether similar projects are routine in the relevant region/segment; supports additionality assessment.

Comparable projects and market segment definition

Define market segment (scale, grid region, revenue model) and identify comparable installations.

Evidence requirements

Use authoritative sources; apply conservative interpretation where incomplete.

Outcome and justification

If deployment is common, provide justification for additionality based on project-specific barriers.

5.5 Additionality conclusion and documentation package

Provide an integrated additionality conclusion with supporting evidence. VVB validates additionality and documents findings.

Chapter 6 - Quantification of baseline emissions

This chapter provides the quantification approach for baseline emissions: measured electricity delivery and PCS-approved grid emission factors.

6.1 General quantification approach

Quantify ex-post for each monitoring period using measured electricity and PCS-approved EF. The approach assumes one-to-one displacement of grid electricity per MWh delivered.

6.2 Baseline emissions equation

Baseline emissions for monitoring period y:

BE_y = EG_y × EFgrid,y

Where:

• BE_y: baseline emissions (tCO2e)

• EG_y: net electricity delivered in period y (MWh)

• EFgrid,y: PCS-approved grid emission factor (tCO2e/MWh)

Handle sub-periods if EF or grid definitions change.

6.3 Determination of net electricity delivered

Principle

EG represents the electricity for which the displacement claim is made. It must exclude curtailed or non-delivered generation.

Crediting boundary requirement

Define crediting boundary and identify meter(s)/records used. Preferred boundary: POI export meter.

Determination using POI net export metering

If a revenue-grade export meter at the POI records net export, EG = annual net export recorded for period y.

Determination using gross generation and auxiliary consumption

Where no POI net export meter exists, EG can be calculated:

EG = GE − AE

Where GE is gross generation and AE is auxiliary consumption (metered or conservatively estimated). Estimate methods must be documented and conservative.

Determination for distributed and net-metering arrangements

For distributed projects, aggregate multiple meters conservatively. Conservative default: only verifiable net exports recorded by utility are credited unless PCS permits behind-the-meter self-consumption crediting with verifiable metered data.

Curtailment and non-delivered generation

Curtailment (not delivered at crediting boundary) shall not be credited. EG must be based on metered delivery.

Data gaps and conservative treatment

Apply conservative substitution for missing/invalid EG data; document causes, duration, methods and impacts. Material gaps may require exclusion or discounting.

6.4 Determination and application of the grid emission factor

Requirement to use PCS-approved factors

Use PCS-approved EF from PCS listings or PCS-approved official sources. Record grid ID, year, and publication/version.

Year and timing alignment

Apply EF corresponding to monitoring year y, except where PCS permits a fallback for publication timing. Fallback must be conservative. Follow PCS guidance on retrospective adjustments.

Multiple grids, grid changes, boundary updates

If supplying multiple grids, quantify electricity delivered to each and apply respective EFs. Follow PCS guidance on boundary changes.

Conservative application rules

If multiple plausible EFs exist, apply the factor yielding lower baseline emissions unless PCS directs otherwise.

6.5 Baseline emissions calculation procedures and reporting

For each monitoring period, compile a BE calculation record: EG, EFgrid,y, BE, data sources, QA/QC steps, and EF reference. Present meter/sub-period breakdowns with reconciliation to annual totals.

6.6 Quality assurance for baseline quantification

Implement QA checks: completeness, plausibility vs expected generation, reconciliation with SCADA/inverter data, and EF selection verification. Document anomalies and conservative corrections.

Chapter 7 - Project emissions

This chapter defines PE and when PE = 0 or must be calculated.

7.1 Principle and scope of project emissions

PE are emissions within the project boundary resulting from operation. Under v1.0 PE are primarily associated with grid-imported auxiliary loads not netted in EG. Fossil fuel combustion within boundary generally renders project ineligible unless approved.

7.2 Default case: project emissions equal zero

Set PE = 0 when delivered electricity used for baseline is measured as net export at the crediting boundary (i.e., AE and internal losses are inherently netted).

Document metering configuration and confirm zero PE basis for validation.

7.3 When project emissions must be calculated

Calculate PE when EG is derived from gross generation (not net export) or where non-solar inputs contribute to credited electricity. Such configurations are generally ineligible unless approved.

7.4 Sources of project emissions under v1.0

Potential sources include:

• Auxiliary electricity imported from grid (AE_import) - relevant when EG derived from GE and AE is supplied from grid (included and quantified).

• Auxiliary consumption supplied from PV generation - inherently netted if net export measured.

• Transformer/internal losses - ensure EG reflects delivered electricity (losses reduce EG).

• On-site fossil backup - generally ineligible v1.0 unless approved.

• Batteries - conditional: permitted only if credited electricity demonstrably solar-derived and grid charging excluded.

7.5 Quantification of auxiliary electricity import emissions

Applicability

When AE imported from grid is not netted within EG.

Equation

PE_AE_y = AE_import_y × EFgrid,y

Total PE_y = PE_AE_y + other quantified PE sources (if any).

Determination of AE_import

Use revenue-grade import meters or utility billing records. If metering cannot separate PV-supplied vs grid-imported auxiliaries, conservatively assume imports from the grid.

Treatment of shared facilities

Allocate imports conservatively based on engineering data, metering partitions, or accepted keys.

7.6 Treatment of internal losses and meter location

Delivered electricity must reflect the crediting boundary. If generation meter is upstream of losses and POI is downstream, EG must be adjusted conservatively to reflect downstream delivery.

7.7 Battery storage and grid charging (conservative v1.0 rules)

Storage permitted only where project can demonstrate credited electricity is not inflated by grid-charged electricity. If storage can be grid-charged and cannot be shown segregated, project is not eligible under v1.0.

7.8 Fossil fuel combustion within project boundary

Fossil generation within boundary that contributes to credited electricity makes project ineligible under v1.0 unless a PCS-approved deviation or methodology update permits hybrid accounting.

7.9 Data requirements and QA/QC for project emissions

Retain auxiliary import meter/bill records, calibration/seal records, and mapping to monitoring periods. Implement plausibility checks to avoid understating AE.

7.10 Reporting of project emissions

Report PE in the monitoring report, including quantities and EF applied. If PE assumed zero, state the basis and provide supporting metering evidence.

Chapter 8 - Leakage

This chapter defines leakage and its treatment. Leakage is generally negligible for grid-connected PV but requires screening.

8.1 Leakage principle

Account for leakage if attributable, outside project boundary, reasonably measurable, and material. Leakage reduces ER; no credits for leakage reduction.

8.2 Default leakage assumption for v1.0

Leakage is assumed zero where leakage screening concludes no credible/material pathways. Projects must provide a leakage screening statement.

8.3 Leakage screening requirements

Conduct leakage screening at validation and confirm at each verification. Assess whether project implementation causes displacement/relocation of emissions-producing activities.

Refer to Table 8-1 (leakage pathways) and quantify only if credible and attributable.

Table 8-1 (summary)

• Relocation of fossil generators: quantify if displaced and operated elsewhere due to the project.

• Activity shifting: quantify only if credible and attributable.

• Market leakage via electricity markets: typically not required.

• Supply chain/manufacturing: excluded from operational leakage.

• Land-use displacement: addressed under safeguards; not usually leakage.

• Shared infrastructure/external backup: quantify if attributable.

8.4 Leakage pathways and treatment

Relocation of fossil generators

If relocated generators operate elsewhere due to project, quantify leakage based on measured fuel consumption; otherwise LE = 0.

Activity shifting

Quantify only when causal link and measurable emissions exist.

Land-use displacement and indirect effects

Address via safeguards; quantify as leakage only if PCS requires.

Shared infrastructure and external backup supply

Quantify if project increases use of backup generation outside the boundary and emissions are attributable.

8.5 Quantification of leakage

If required, LE_y = sum_i LE_i,y using PCS-approved approaches (fuel-based equations or EF applications).

8.6 Leakage documentation and reporting

Include leakage screening statement in validation documents and confirm at verification. Where LE is quantified, report with supporting evidence.

Chapter 9 - Monitoring plan

This chapter defines monitoring requirements to ensure measurable, verifiable, and conservative quantification.

9.1 Monitoring objectives

Generate complete records traceable from raw meter data to annual totals; maintain meter accuracy/calibration records; monitor auxiliary imports; document EF used; detect anomalies and gaps.

9.2 Monitoring parameters and minimum requirements

Minimum parameters:

• EG: net electricity delivered at crediting boundary (MWh) - continuous, aggregated monthly/annually - POI export meter or settlement meter.

• GE (if used): gross PV generation - continuous - generation meter/SCADA.

• AE (if used): auxiliary consumption - continuous/monthly - auxiliary meter or conservative estimate.

• AE_import (if applicable): auxiliary electricity imported from grid - monthly - import meter or utility bills.

• EFgrid,y: PCS-approved grid EF - annual - PCS listing/source.

• Operational events log, meter integrity records.

9.3 Metering and instrumentation requirements

Crediting meters must be settlement/revenue-grade, tamper-resistant, and auditable. Document meter specs, accuracy class, installation location, and ownership/maintenance responsibilities.

9.4 Calibration and accuracy management

Maintain calibration certificates and a calibration schedule consistent with national/international standards. On meter replacement, document final/initial readings and reconciliation.

9.5 Data management, storage, and chain of custody

Store raw meter data in original formats where feasible. Aggregated spreadsheets must be reproducible from raw data and include versioning and source references. Implement access controls and audit trails. Retain records per PCS retention rules.

9.6 Data validation and plausibility checks

Perform checks for missing intervals, discontinuities, outliers, and reconcile SCADA/inverter data with export meter totals. Document reconciliation steps.

9.7 Data gaps and conservative substitution rules

Apply conservative substitution hierarchy (preferred: utility settlement records; alternatives: SCADA with discount; worst-case: exclude period). Document cause, duration, substitution method, and impact on EG.

Recommended substitution hierarchy (summary):

• Missing export interval: use settlement record or conservative SCADA estimate.

• Missing monthly reading: sum daily records or use conservative seasonal lower bound.

• Meter failure with no redundant source: exclude period or use lowest plausible output.

• Missing AE data: use utility reprints or assume higher imports.

9.8 Monitoring report content requirements

Monitoring report must include: period dates, metering configuration, EG totals, EF applied, project emissions, leakage screening confirmation, anomalies/corrective actions, and traceable calculations with evidence register references.

9.9 Evidence register and documentation structure

Maintain an evidence register mapping evidence IDs to documents (raw data, calibration certs, EF records, bills, O&M logs). Ensure traceability from reported values to source evidence.

Chapter 10 - Calculation of emission reductions

This chapter provides the full calculation procedure combining baseline emissions, project emissions, and leakage.

10.1 Calculation principle

ER are net GHG benefits measured ex-post: BE − PE − LE, based on monitored EG and PCS-approved EF, with conservative treatment for uncertainties and data gaps.

10.2 Core equations

• Baseline emissions: BE_y = EG_y × EFgrid,y

• Project emissions: PE_y = sum of quantified PE sources (e.g., AE_import × EFgrid,y); PE_y = 0 when net export metered at crediting boundary.

• Leakage: LE_y = sum of quantified leakage sources (if any).

• Emission reductions: ER_y = BE_y − PE_y − LE_y

10.3 Step-by-step calculation procedure

1. Define monitoring period dates.

2. Compile EG for the period from crediting meter(s).

3. Identify applicable PCS-approved EF(s) for the grid/year(s).

4. Determine whether PE must be accounted for (based on metering architecture).

5. Confirm leakage screening and quantify if required.

6. Calculate BE, PE, LE, and ER; present in a calculation table with source references.

10.4 Sub-period handling and emission factor changes

If EF changes within a monitoring period, split into sub-periods and apply the appropriate EF to EG allocated to each sub-period. Allocation must be based on verifiable meter data.

Sub-period ER: ER_y = sum_k (EG_k × EF_k − PE_k − LE_k)

Provide a sub-period calculation table for transparency.

10.5 Multiple meters and aggregation of delivered electricity

Sum delivered electricity across meters, ensuring no overlap or double counting. If meters correspond to different grids, apply respective EFs before summing emissions.

Provide a meter aggregation table listing Meter ID, location, data source, period covered, delivered electricity, and reconciliation notes.

10.6 Conservative treatment of data gaps in ER calculation

Identify substituted values in calculation tables. Substitutions must be conservative (not increase ER). Provide a data gap log summarizing gaps, substitution methods, and impacts.

10.7 Reporting requirements for emission reductions

Monitoring report shall use calculation tables (sub-period and meter aggregation templates), reference EF source/version, state PE treatment and leakage conclusions, and include a narrative of any non-standard aspects.

Chapter 11 - Uncertainty and conservativeness

This chapter addresses uncertainty management and conservativeness to prevent overstatement.

11.1 Principle of conservativeness

Apply conservativeness whenever uncertainty could increase ER. Conservative adjustments must be justified, documented, and traceable.

11.2 Primary uncertainty sources under solar PV projects

Primary uncertainties: meter accuracy/calibration, data completeness, mapping of meter data to monitoring period, correct EF selection, aggregation integrity for distributed projects.

11.3 Uncertainty screening and classification

Perform uncertainty screening at validation and confirm at each verification using a risk table identifying controls and conservative measures.

11.4 Meter accuracy and calibration treatment

Use revenue-grade meters with valid calibration certificates. Missing/expired certificates or integrity issues require conservative measures (exclusion or discounting for affected periods).

11.5 Data completeness and conservative substitution

Apply conservative substitution rules per Chapter 9. Exclude periods when reliable conservative substitution is not possible.

11.6 Conservative treatment of boundary ambiguity

Where meter location/interpretation is ambiguous, select the interpretation that yields lower EG. Support boundary definitions with diagrams and photos.

11.7 Conservative application of grid emission factors

Use PCS-approved EF and select the EF that results in lower BE where ambiguity exists. Use PCS fallback rules for unpublished EFs and select conservative options.

11.8 Materiality concept and methodology defaults

Treat missing/invalid export meter data, missing calibration evidence, unverified aggregation, or inconsistent EF selection as likely material unless evidence demonstrates otherwise. Material issues require conservative exclusion or discounting.

11.9 Documentation of conservativeness measures

Document each conservative measure: reason, period, method, adjustment calculation, and impact on ER, with evidence references.

11.10 VVB assessment of uncertainty and conservativeness

VVB assesses uncertainty screening, meter integrity, EF selection, and conservative measures; raises corrective actions or recommends conservative adjustments/exclusions as necessary.

Chapter 12 - Safeguards, SDG integrity, and avoidance of double counting

This chapter operationalizes non-quantitative integrity requirements.

12.1 Safeguards and SDG integrity objective

Projects must avoid/mitigate adverse environmental and social impacts and provide credible SDG claims. Compliance is required at validation and throughout implementation.

12.2 Environmental and social safeguards requirements

Comply with PCS ESS Standard and submit the PCS safeguards assessment form with supporting evidence proportional to project risk (ESIA, management plans where applicable).

12.3 Sustainable development and SDG integrity requirements

Complete PCS SDG impact assessment and support SDG claims with indicators and evidence.

12.4 Stakeholder engagement and grievance mechanism

Implement stakeholder engagement and grievance mechanisms per PCS; maintain records of grievances and resolutions.

12.5 Avoidance of double counting: general requirement

Demonstrate emission reductions are not double issued/claimed. Disclose participation in other carbon programs or attribute transfer schemes and demonstrate exclusive claim rights.

12.6 Corresponding adjustment and Article 6 alignment considerations

If Article 6 alignment or corresponding adjustment (CA) is sought, provide authorization and CA evidence per PCS rules; do not imply CA without evidence.

12.7 Integration points with PCS forms and templates

Demonstrate compliance via PCS forms and evidence files; ensure consistent claim-type declarations and authorizations.

12.8 Compliance matrix and evidence requirements

Provide validation/verification evidence per the compliance matrix (safeguards, SDG, stakeholder engagement, grievance, double counting, REC interactions, Article 6).

12.9 Ongoing compliance and change management

Report changes affecting safeguards, SDG, ownership, or claims per PCS post-registration change procedures.

12.10 VVB assessment and findings

VVB assesses compliance and issues corrective actions or non-registration/non-issuance for unresolved material deficiencies.

Chapter 13 - Validation requirements

Validation confirms eligibility, correct methodology application, and monitoring readiness prior to registration.

13.1 Validation objective and scope

Confirm project meets PCS eligibility and that monitoring systems can support ex-post quantification. Validate baseline, additionality, boundary, monitoring plan, PE/LE treatment, and safeguards/SDG/double counting compliance.

13.2 Validation timing and documents

Validation completed prior to registration. Submit project description, baseline/additionality documentation, metering evidence, monitoring plan, safeguards/SDG forms, and ownership/authorization declarations.

13.3 Validation assessment areas

• Applicability and eligibility under v1.0 (grid connection, excluded configurations).

• Project boundary and metering boundary (single-line diagrams, meter photos).

• Baseline scenario and EF selection readiness.

• Additionality validation (regulatory surplus, investment analysis, common practice).

• Monitoring plan adequacy and QA/QC readiness.

• Project emissions and leakage treatment.

• Safeguards, SDG integrity, and double counting compliance.

13.4 Validation outputs and findings management

Document validation in PCS validation report format; issue corrective actions for non-conformities prior to positive validation conclusion.

13.5 Methodology-specific validation checklist

VVB should use a checklist covering applicability, crediting boundary, meter suitability, EG determination, EF readiness, additionality, PE treatment, leakage, safeguards, SDG, double counting, Article 6 readiness, and monitoring plan.

13.6 Validation conclusion statement

A positive validation conclusion states eligibility under PCS and the methodology, validated monitoring plan, and any conditions/limitations.

Chapter 14 - Verification requirements

Verification confirms reported ER for a monitoring period are accurate, conservative, and supported by evidence.

14.1 Verification objective and scope

Confirm monitoring plan implementation, data completeness/reliability, correct calculation of BE, PE, LE, ER, and continued compliance with safeguards/SDG/double counting.

14.2 Verification inputs and reporting boundary

Inputs: monitoring report, raw meter data, calibration/seal logs, bills, event logs, evidence register. Verify crediting boundary in practice.

14.3 Verification assessment areas

• Continued applicability and boundary consistency.

• Monitoring implementation, data integrity, and QA/QC.

• Verification of delivered electricity (EG).

• Verification of grid EF (PCS-approved, correct year).

• Verification of project emissions (PE).

• Verification of leakage (LE).

• Verification of emission reduction calculations (reproduce calculations).

14.4 Treatment of data gaps, corrected data, and adjustments

Verify conservative substitution methods; confirm corrections are justified and do not inflate ER. Apply conservative measures where issues remain unresolved.

14.5 Verification sampling and evidence review approach

Use risk-based sampling focusing on anomalies, meter replacements, data gaps, and unusual patterns. For distributed aggregation, sample units for eligibility and metering.

14.6 Continued compliance with safeguards, SDG, and double counting

Verify implementation of safeguards, grievance handling, SDG indicator monitoring, and no conflicting claims; confirm Article 6 authorization where claimed.

14.7 Verification outputs, findings, and issuance recommendation

VVB issues verification report with recommendation on verified ER quantity for issuance. Corrective actions must be closed prior to positive verification unless PCS allows conditional issuance.

14.8 Methodology-specific verification checklist

VVB should use a verification checklist covering applicability, boundary consistency, meter integrity, EG traceability, curtailment treatment, EF application, sub-period splits, PE treatment, leakage screening, and calculation reproduction.

Chapter 15 - Methodology eligibility and applicability checklist

This chapter provides an audit-ready checklist to confirm project eligibility and continued applicability.

15.1 Eligibility logic and decision structure

Eligibility sequence: (1) grid-connected PV with verifiable metering boundary; (2) additionality demonstration; (3) safeguards/SDG/double counting compliance; (4) monitoring readiness and data integrity.

Non-compliance requires conservative exclusion/discounting or non-registration/non-issuance.

15.2 Eligibility checklist

Project must complete the eligibility checklist (examples of requirement areas include: project type, grid connection, EF availability, metering boundary, EG derivation, hybrid exclusion, storage integrity, additionality, safeguards, SDG, grievance, double counting, Article 6, monitoring readiness, data management, data gap rules).

15.3 Evidence submission package and cross-reference table

Compile an evidence submission package indexed via an evidence register mapping requirements to documents (project description, grid connection, metering integrity, EG raw data, EF reference, additionality documents, safeguards, SDG, double counting disclosures, grievance logs).

15.4 Ongoing eligibility and post-registration changes

Report changes affecting eligibility (meter replacement, boundary changes, ownership, claim-type changes, storage grid charging capability) per PCS change procedures. Non-compliance during a monitoring period may require exclusion or non-issuance.

15.5 VVB use of this checklist

VVB uses the checklist at validation and revisits key items at verification; document outcomes and corrective actions.

Annex A - Metering configurations and boundary scenarios

A.1 Purpose

Defines acceptable metering configurations for determining EG and clarifies when PE = 0 or must be quantified. Project must identify applicable configuration and include single-line diagrams and meter evidence.

A.2 Metering configuration table (summary)

• A1 - Utility-scale, POI export meter: net export at POI; PE usually zero. Evidence: POI meter spec, calibration, raw data.

• A2 - Utility-scale, no net export meter: GE + AE approach; PE may be non-zero. Evidence: generation meter, AE meter, method file.

• A3 - Settlement meter: net settled export; PE usually zero. Evidence: settlement statements.

• A4 - Distributed (net metering): billing boundary net exports; PE usually zero. Evidence: billing statements and aggregation.

• A5 - Distributed (generation metered): depends on delivery boundary and PCS acceptance.

• A6 - PV + storage (PV-only charging): eligible if net export reflects no grid charging.

• A7 - PV + storage (grid charging possible): conditional; requires segregation proof or otherwise ineligible v1.0.

A.3 Boundary declaration statement (to include in PDD)

Include a boundary declaration in the PDD with statements on crediting boundary, EG measurement, AE treatment, storage treatment, and evidence references.

Annex B - Data gap management and conservative substitution examples

B.1 Purpose

Provides acceptable conservative approaches for missing/invalid data. Substitutions must not inflate ER and must be transparent.

B.2 Data gap categories and treatment (summary)

• Short interval gaps: recover from meter memory/utility; else conservative SCADA estimate (discounted).

• Missing monthly reading: use utility settlement or conservative seasonal lower bound.

• Meter replacement discontinuity: reconstruct from event logs or use conservative lower bound.

• Missing AE import data: utility reprint or assume higher imports.

• Missing EF for year: use PCS fallback rule and choose conservative option.

B.3 Substitution documentation requirements

For each gap, document cause, duration, substitute method, conservative basis, substituted value, impact on ER, and evidence ID.

Annex C - Worked example (calculation illustration)

C.1 Purpose

Illustrative examples only; projects must use monitored data and PCS EF.

C.2 Worked example for Config A1 (POI net export)

Assume EG = 52,000 MWh, EFgrid = 0.62 tCO2e/MWh.

• BE = 52,000 × 0.62 = 32,240 tCO2e

• PE = 0

• LE = 0

• ER = 32,240 tCO2e

C.3 Worked example for Config A2 (gross generation minus auxiliary)

Assume GE = 54,000 MWh, AE = 1,500 MWh → EG = 52,500 MWh; EF = 0.62 tCO2e/MWh.

• BE = 52,500 × 0.62 = 32,550 tCO2e

• PE (AE_import) = 1,500 × 0.62 = 930 tCO2e

• LE = 0

• ER = 32,550 − 930 = 31,620 tCO2e

Annex D - Evidence register template and naming convention

D.1 Purpose

Standardize evidence register structure for traceability.

D.2 Evidence register structure

Maintain an evidence register with IDs and entries such as PRJ-01 (project description), GRID-01 (interconnection approval), MTR-RAW-01 (export raw data), CAL-01 (calibration certificate), EF-01 (PCS EF record), AUX-01 (import bills), ESG-01 (safeguards form), SDG-01 (SDG form), DC-01 (attribute disclosure), GRV-01 (grievance log).

D.3 Evidence naming convention

Evidence IDs remain stable across reporting cycles; append monitoring period tags if needed (e.g., MTR-RAW-01-MP2026). Follow PCS registry naming conventions.

Annex E - Eligibility decision tree

E.1 Purpose

Decision structure to determine eligibility under v1.0 and treatment of special cases.

E.2 Decision logic

A project is eligible if:

• It is solar PV generation connected to a PCS-defined grid with a PCS-approved EF.

• Net electricity delivered is measurable at an auditable crediting boundary.

Not eligible if:

• Not connected to a PCS-defined grid with applicable EF.

• Fossil generation contributes to credited EG (unless PCS-approved deviation).

• Storage grid-charging cannot be segregated.

• Electricity delivery cannot be verified with revenue-grade, settlement, or PCS-accepted conservative arrangements.

E.3 Decision table (summary)

Decision points include: PV generation, grid connection, EF availability, verifiable crediting boundary, measurable/conservative delivery, fossil contribution, storage with grid charging, additionality, safeguards/SDG/double counting, and monitoring plan implementation. Evidence required includes technical specs, interconnection docs, EF records, meter/settlement evidence, financial/regulatory evidence, PCS forms, and monitoring evidence.

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If you would like, I can:

• Generate a ready-to-use evidence register file template (CSV or spreadsheet layout) pre-filled with the evidence IDs referenced above.

• Extract the validation and verification checklists into standalone checklist files for inclusion in the PDD or VVB pack.