What is a feed-in-tariff and how does it work?
A feed-in-tariff (or FIT) is a straightforward way to contract for renewable energy generation. It provides standardized program rules, prices and contracts. Feed-in tariffs refer to the specific prices paid to renewable energy suppliers for the electricity produced by the generating facility. The pricing structure provides a reasonable return on investment and is differentiated by project size and technology type.

Ontario’s FIT Program is the first of its kind in North America. While it incorporates lessons learned in several European countries and other jurisdictions, it has been specifically tailored to meet the unique needs of Ontario’s electricity system and situation.

What is the difference between the FIT Program and the microFIT Program?
The microFIT Program is a “stream” or component of the FIT Program, designed specifically to encourage the development of micro-scale renewable energy projects, such as residential solar photovoltaic (PV) installations and small wind power facilities.

Projects eligible for microFIT must have a generating capacity of 10 kW or less. The microFIT Program has streamlined contracting and application processes. The FIT Program is for projects over 10 kilowatts; and the microFIT Program is for projects 10 kilowatts or less.

When did the FIT Program launch?
The OPA began accepting FIT and microFIT applications on October 1, 2009.

What are the key features of the FIT Program?
Ontario’s FIT Program has a number of key features. It:

• provides a straightforward way to contract for generation
• is open to various renewable energy technologies, including biogas, biomass, landfill gas, solar photovoltaic (PV), wind and waterpower
• allows all types of generators, from homeowners to large developers, to participate
• has different prices for different technologies and different project sizes
• has prices that are intended to cover total project costs and provide a reasonable rate of return over a 20-year contract (40 years for waterpower)
• provides incentives for First Nation and Métis projects
• provides incentives for community-based projects
• offers long-term price guarantees to increase investor confidence and access to financing
• drives the expansion of the distribution and transmission systems, which allows generators to connect to the grid.

Is the OPA responsible for electricity procurement under the FIT Program?
Yes. The OPA is responsible for administering the two streams of the FIT Program:

• the FIT Program stream for projects over 10 kilowatts
• the microFIT Program stream, for projects 10 kilowatts or less.

This includes the assessment of applications as well as contract management. All contracts awarded through the FIT and microFIT Programs will require developers to obtain the appropriate approvals through the new environmental permitting process, as well as from their connection authority, such as the local electricity distribution company (LDC), or the Independent Electricity System Operator (IESO). The government has established a new Renewable Energy Facilitation Office (REFO) to assist developers as they go through the required approvals and permitting processes.

How will the Renewable Energy Facilitation Office help renewable energy developers, communities and municipalities involved in renewable energy projects?
The newly created Renewable Energy Facilitation Office (REFO) is a one-window access point for information on renewable energy project requirements, and can connect Ontarians with the appropriate resources to assist them in navigating through the approvals and Feed-in Tariff processes. 

The REFO functions as a source of information for renewable energy developers, communities, and municipalities, and can act as a liaison between these parties and Ontario's ministries and agencies. The REFO can assist in setting up a coordinated orientation meeting to discuss your project's requirements. This meeting can help clarify various requirements related to your renewable energy project.

As an umbrella body with no regulatory responsibilities, REFO has a unique understanding of the renewable energy regime and serves to educate all its parties based on its understanding.
Visit the Renewable Energy Facilitation Office at www.ontario.ca/renewableenergyprojects.

Will applications for the FIT and microFIT Programs have to be approved?
Yes – all FIT program applications will first be reviewed to make sure that all the required application materials have been completed. Applications will then be assessed to ensure they meet the program requirements and determine whether there is available connection capacity to connect projects to the grid before a contract can be signed. The OPA’s target for completing the approval of complete FIT Program applications is 60 days.

All applications to the microFIT Program will be reviewed by the OPA. If an application meets the program eligibility requirements, the OPA will send the applicant a conditional offer of contract. The OPA aims to complete the approval of microFIT Program applications within 30 days of receiving complete applications and any clarifications that might have been requested by the OPA.

How long will program contracts run?
Contracts run for 20 years for both the FIT and microFIT Programs, with the exception of contracts for waterpower which run for 40 years.

Are there grants or loans for Ontario homeowners, businesses or institutions wishing to participate in the FIT or microFIT Programs?
The OPA does not provide grants for renewable energy projects as the long-term contracts are a significant financial incentive to develop a project. However, the Green Energy Act enables the Ministry of Energy to make grants and loans available to encourage energy conservation and renewable energy projects.

Through the Community Energy Partnerships Program the province will provide one-time support to community groups to assist with the "soft" or developmental costs associated with renewable energy projects. This will help communities in Ontario, including farmers, co-ops and non-profit organizations bring green energy projects to life.

Are there grants or loans for Ontario municipalities wishing to participate in the FIT or microFIT Programs?
Through the Municipal Renewable Energy Program, the province will provide support to municipalities for costs associated with new renewable energy projects.

While many of these costs are, and will continue to be, appropriately charged to the developers themselves, it is expected some additional costs may arise.

What areas of the province can participate in the FIT and microFIT Programs?
All areas of the province connected to the IESO-controlled grid can participate. This includes projects connected directly to the transmission system, to a distribution system connected to the IESO-controlled grid, or to a distribution system embedded within another distribution system. There are a few areas not connected to the Ontario grid that would not be able to participate in the FIT and microFIT Programs. These include Cornwall, which is connected to the Quebec grid, and remote communities in Northern Ontario.

Do I have to own the property on which I want to install the project?
For FIT projects you must provide evidence of access rights to a property. This does not mean that you have to own the property. For example, you may have a lease arrangement for 20 years.

For microFIT projects, you do not have to own the property, but you must be permitted by the property owner to install the microFIT project on the property. The microFIT contract holder must be the same person or entity as the holder of the local electricity distribution company (LDC) generator account and the holder of the connection agreement associated with the microFIT project. Note that an LDC generator account is required for all microFIT projects. This is a separate account from any existing LDC customer.

Are net-metered projects eligible to transition to FIT and/or microFIT? 
Facilities that are 10 kW or less and meet the requirements of the microFIT Program Rules can apply to the microFIT Program.

Facilities that are greater 10 kW and equal to or less than 500 kW are eligible to apply for the FIT Program. Facilities greater than 500 kW are not eligible to transition to the FIT Program.

Are projects with RESOP or other OPA contracts eligible to transition to FIT and/or microFIT?
Projects of any renewable technology that have a capacity of 500 kW or less and were purchased or were in service by 11:59 p.m. on October 1, 2009 will be eligible to transition to the FIT and microFIT Programs. They will be deemed to have met the domestic content requirements.

Generators who have not been operating under an OPA contract will receive a 20-year FIT or microFIT contract. Generators who have been operating under a RESOP contract will obtain a contract representing the balance of the 20-year FIT or microFIT contract.

Is there a step-by-step procedure to follow from start to finish for homeowners and small business persons to help them implement a renewable energy project?
Materials to assist developers, homeowners and small businesses understand the FIT and microFIT Rules and application processes are on this website.

What happens to the environmental attributes of a project? 
The OPA will own all of the environmental attributes associated with projects that receive contracts through the FIT and microFIT Programs.

What if my project was installed after the introduction of the Green Energy and Green Economy Act but before the launch of the FIT Program?
Renewable energy projects that are installed following the introduction of the Green Energy and Green Economy Act, 2009 will be eligible to participate in the FIT Program, provided they meet the eligibility requirements, including requirements for domestic content.

Do I need insurance for my microFIT project?
Insurance Bureau of Canada has developed a helpful brochure which provides some insurance tips for microFIT participants. The brochure is found here: http://www.ibc.ca/en/Home_Insurance/documents/brochures/MicroFit_brchr.pdf. Insurance Bureau of Canada is also available to answer your questions at the following numbers:  

Insurance Bureau of Canada
Ontario Consumer Information Centre
Tel: 416-362-9528
Toll-free: 1-800-387-2880