# R1: Compliance - REC/SREC ## What this route does. R1 turns **verified metered generation** into **compliance-grade certificates** under live programs (e.g., REC/SREC regimes, SMART, STC). It operates **ex-post**: nothing issues until evidence is verified and one-claim exclusivity is guaranteed. **No evidence → no token → no settlement.** ### PoV in Action {% stepper %} {% step %} ### Capture & Sign Utility/inverter or revenue-grade meters emit **windowed production** (`device, start/end, Wh, method`). Each record is **signed at the source** and normalized to **canonical evidence.** {% endstep %} {% step %} ### Verify A **role-diverse attestor** set (e.g., metering operator, independent auditor, optional grid/operator feed) attests to **the same evidence hash**. EDMA requires quorum and role diversity; mismatches fail here, not later. {% endstep %} {% step %} ### Gate The **PoV Gate** enforces three rules before any state change: 1. **Quorum present** 2. **Equality of evidence** (every counted attestation references the exact evidenceHash and batch/window), 3. **One-Claim exclusivity** (the claimId has not been finalized anywhere in the network). If any rule fails, **no mint, no issue, no settle.** {% endstep %} {% step %} ### Proof mint On pass, EDMA mints **Energy Tracking Tokens (ETT)** as non-transferable proofs at **1 ETT = 10 kWh**. ETT are receipts that anchor reality on-chain—they do not trade and cannot be double-used. {% endstep %} {% step %} ### Issue the compliance unit At **100 ETT (1 MWh),** EDMA requests issuance in the **official registry** for the jurisdiction (REC/SREC or SMART/STC crediting). Issuance/retirement identifiers are then **mirrored on-chain**; the consumed ETT are stamped & locked so the same MWh cannot back any other claim (e.g., a carbon ton). **One MWh → one claim.** {% endstep %} {% step %} ### List & Settle The issued asset can be listed on the **Token/NFT** marketplace with full lineage (evidence → attestors → proof → registry issue). Settlement is in **$EDM** under route policy. If an upstream attestation is later **revoked**, dependent listings and transfers **auto-flag/freeze** until rectified; lineage remains append-only. {% endstep %} {% endstepper %} {% hint style="success" %} **Outcome: meter → attest → PoV gate → ETT proof → registry issue → list → EDM settlement → 50% burn → immutable audit trail.** {% endhint %} ### Evidence & Attestors R1 is rigid about **what counts as proof and who can vouch for it:** * **Canonical evidence (per window)**: `device_did, start_ts, end_ts, quantity_wh, method_id → evidenceHash.` * **Attestor quorum**: at minimum, **independent auditor** + **one operational role** (metering operator; optional grid/operator feed). Roles are allow-listed and rotated; bad keys are slashed/banned. * **Equality check:** every verification the gate counts must reference the **exact same `evidenceHash`** and batch/window. * **One-Claim Ledger**: the route-agnostic `claimId` (derived from device+window+wh+evidenceHash) can finalize once network-wide—preventing cross-registry double-use. ### Program Mapping & Issuance R1 includes a **mapping step** so a site lands in the **correct program** for its region and size. Once enrolled, EDMA aligns with each program’s cadence (e.g., monthly or quarterly issuance). When a credit issues in the official registry, EDMA 1. **anchors** its serial/retire ID on-chain and 2. **locks** the backing ETT to enforce one-claim law across all routes and registries. If a jurisdiction requires a mirror or local attestation, EDMA records proof-of-mirror and links the external ID to the same claimId—without ever allowing reuse. ### Market **Eligible generators**. Rooftop PV for **owner-operators** (households, schools, municipal, small C\&I). You **must own the environmental attribute**; third-party ownership/lease/PPA that assigns RECs away is not R1 (route to [R2](https://docs.edma.app/20.-routes/r2-granular-and-flex) or [R3](https://docs.edma.app/20.-routes/r3-community-share)). #### **Markets covered:** * **US: DC (SREC) · NJ (SREC-II / ADI) · IL (ABP ≤10 kW) · MD / PA (SREC) · MA (SMART tariff)** * **AU: STCs at install time (up-front)** * **Not R1 (reroute): UK SEG exports →** [**R2**](https://docs.edma.app/20.-routes/r2-granular-and-flex) **· Singapore (I-REC/TIGR) →** [**R2**](https://docs.edma.app/20.-routes/r2-granular-and-flex) #### Buyer landscape. * **US:** LSEs/EDCs & retail suppliers, program admins, brokers/aggregators; MA: EDCs via SMART blocks; IL: IPA/utilities via AV contracts. * **AU:** liable retailers and **STC agents.** ### Price Formation & Cadence * **Unit.** **1 MWh = 1 compliance unit** (or SMART/STC crediting equivalent). * **Price modes. Spot, fixed, tariff** (SMART), or **deemed** (STCs up-front). * **Timing**. Issuance follows program cadence (often monthly/quarterly). **STCs** pay at install; post-install value typically flows via R2 (granular/flex attributes). * Cash formula. Gross – route fees (2% buyer + 2% seller in EDM) = net to participant. 50% of collected fees burn. ### Bands & Examples #### Program bands (today’s reality): * **DC SREC:** $350–$450/MWh * **NJ SREC-II (ADI):** $85/MWh * **IL ABP (≤10 kW):** $66–$75/MWh * **MD SREC:** \~$48/MWh · **PA SREC:** \~$23.5/MWh * **MA SMART 3.0 (≤25 kW):** $0.03/kWh base (≈$30/MWh); $0.06/kWh low-income bands * **AU STCs:** A$39–40/MWh (deemed, up-front) #### Worked snapshot: 10 kWp home (\~18 MWh/yr) * **DC (\~$400/MWh):** $7,200 gross → $7,056 net/yr (2% seller fee) * **NJ ($85/MWh):** $1,530 gross → $1,499 net/yr * **IL ($70/MWh mid):** $1,260 gross → $1,234.80 net/yr * **MD (\~$48/MWh):** $864 gross → $846.72 net/yr * **PA (\~$23.5/MWh):** $423 gross → $414.54 net/yr * **MA SMART base ($0.03/kWh):** $540 gross → $529.20 net/yr * **AU STCs (deemed):** value realized at install; after install, ongoing value typically shifts to R2. **Market size (owner-operator rooftop, US):** * **TAM:** 5.7 TWh/yr ≈ $570M/yr * **SAM:** 2.9 TWh/yr ≈ $290M/yr * **SOM:** 0.3 TWh/yr ≈ $30M/yr AU (STCs): A$0.8–1.2B/yr STC flow (up-front channel) > *All bands are program-driven and indicative; EDMA routes issuance and settlement but does not set program prices.* ### Buyer View A buyer sees a **PoV-Verified** badge, **R1 Compliance** tag, and a **lineage viewer** that walks the chain from **evidence → verifiers → proof → registry issue → current owner**. Method, vintage, region, and hashed device/project identifiers are visible; raw documents remain under access control. When the buyer retires the unit, the retirement pins to the same claimId, so audit becomes review, not reconstruction. ### Fees & Settlement All state-changing actions require **$EDM. Energy/Carbon trades charge 4% total—2% from buyer, 2% from seller**—and the protocol **burns 50%** of every collected fee on-chain (burn continues until circulating supply reaches 100M). The remaining 50% funds operations, liquidity, and incentives (any rebates apply only to the treasury half; burn is never discounted). **No EDM, no action**—quotes may display in fiat or crypto, but settlement is in EDM at the captured rate; if a payer lacks EDM, the transaction reverts and proofs remain intact. ### Edge Cases & Revocation Meters get swapped, inverters go offline, and sometimes data is wrong. R1 treats these as first-class flows: * Missing/late data: the window does not mint until quorum can be met; once verified, issuance resumes—no back-dating without evidence. * Meter replacement: a handover attestation closes the old device and opens the new; windows straddling the change are split and independently verified. * Data error or fraud: any attestor can revoke its verification; if quorum drops below policy after issue, EDMA flags/freezes dependent assets until a corrected attestation restores quorum; lineage is append-only—never rewritten. * Cross-route prevention: attempting to reuse the same evidenceHash in R2/R3 or a carbon route fails at the gate; one-claim is enforced by code, not policy. ### What the Listing Must Show For R1 assets to be admissible on marketplace pages: program, method, vintage, region, capacity band, claimId, evidenceHash, attestation UIDs, seller’s verified entity, and (if applicable) registry serial/retire ID. Device identifiers are hashed; sensitive artifacts stay off-chain; selective disclosure / ZK can prove eligibility without oversharing. ### Worked Example A school’s 150 kW rooftop produces 12,000 kWh this month. The meter window is signed; operator + auditor attest to the same evidenceHash. The PoV Gate passes quorum/equality; EDMA mints **1,200 ETT (1 ETT = 10 kWh)**. In four batches of **100 ETT**, EDMA requests four REC issues at the registry. Each issued serial is anchored on-chain; the backing ETT are locked. The school lists two RECs at a fixed price; a buyer takes the order. Settlement runs in EDM; 4% total fee is collected and 50% burns on-chain. Later, the buyer retires both RECs; the retirement writes back to the same claimIds, closing the lineage loop for audit. ### Non-Negotiables * **Ex-post only.** No forward issuance on estimates. * **One-claim law.** A MWh backs one claim across all routes/registries. * **Fail-safe by default.** Missing auditor, role drift, hash mismatch, or revocation ⇒ no mint / no settle until rectified. * **EDM only.** No auto-swap; without EDM, nothing moves. #### Cross-links * **Marketplace** → Tokens: Listing, Match & Settle, Compliance * **PoV Layer:** `quorum, equality, one-claim, revocation lifecycle` * **Fees:** route policy, burn mechanics * **Data:** `canonical evidence, hashing, schemas, privacy/ZK` * **Governance:** attestor onboarding/offboarding, timelocked policy changes