Carbon markets turn climate goals into measurable action—and solar can be a powerful part of that story. Carbon credits and trading systems put a price on emissions, rewarding projects that reduce or avoid pollution while pushing high-carbon operations to clean up faster. In the context of the evolving landscape of reduction in carbon emissions and integration of renewable energy, this study uses system dynamics (SD) modeling to explore the interconnected dynamics of carbon trading (CT), tradable green certificate (TGC) trading, and electricity markets.