What are the key changes for microFIT ground-mounted solar PV projects?
Based on input received during a 30-day consultation period, the following changes have been made:

Price
The price for the new microFIT ground-mounted solar price category has been finalized at 64.2 cents per kilowatt-hour (kWh). The finalized price reflects input received during the 30-day consultation period and incorporates a wider variation of cost inputs and project configurations, including higher operating and maintenance costs for ground-mounted solar tracking systems.  The price strikes the right balance between providing a reasonable rate of return to electricity generators and protecting ratepayers from higher than necessary electricity prices.

The new price category is effective immediately for eligible projects with applications submitted after noon on July 2, 2010.   

Eligible ground-mounted solar applications submitted prior to noon on July 2, 2010, will receive the original price of 80.2 cents/kWh whether or not the applicant has received a contract or conditional offer. 

Domestic Content Requirements
Eligible ground-mounted solar applicants who applied to microFIT before noon on July 2, 2010, will have until May 31, 2011, to install and request a connection for their projects at the 40% domestic content level. 

microFIT Advisory Panel
To improve communication and increase transparency, the OPA is establishing a microFIT program advisory panel that will provide advice on program evolution including the two-year review process. The panel will be made up of industry, academic and other stakeholder representatives.

Maintaining Original Focus of microFIT Program
Commercial aggregators (e.g., businesses that lease land or rooftops from individuals for multiple renewable energy projects) will no longer be allowed to participate in the microFIT program.  This will ensure that the microFIT program is focused on its original purpose – encouraging homeowners, farmers, farm co-operatives, First Nations, small businesses and institutions such as schools, to own and develop small renewable projects.
The panel will make recommendations, on an expedited basis, about appropriate contracting provisions for aggregators to reflect the unique nature of commercial micro projects.  This will help ensure that commercial aggregators can continue to participate in the clean energy economy but do so outside of the microFIT program structure.

With this new price of 64.2 ¢/kWh, what is the payback period?
All of the microFIT price categories assume an approximate 11-percent return on equity and between a nine and 11-year payback.  However, each system, each installation and each financing arrangement is unique, so it is difficult to offer a truly accurate assessment of payback.

Why does it matter what time on July 2 an application was submitted?
We received a handful of microFIT applications on the morning of July 2 before applications were temporarily suspended for the announcement of the new price category, which took place at noon on July 2, so it is reasonable to use that date-time combination as the cut-off for differentiating projects eligible for one tariff or another.

Why can't I submit an application today?
The OPA is making the changes to the application form to reflect the August 13 announcement.  New applications can be submitted beginning on Friday, August 20.  Applications will then be open to individuals who are the registered owner of the property on which the generating facility is to be located and certain other entities.  Other eligible participants will be discussed by the microFIT advisory panel.  Existing applications can continue to be managed and resubmitted during this time.

What is meant by individuals?
By individuals, we mean that the applicant is the owner of the property where the project is located, and he or she has no direct or indirect revenue-splitting arrangement with a third party. Other eligible participants will be discussed by the microFIT advisory panel. 

How long will it now take to process the ground-mounted solar applications?
The OPA is working to respond quickly to microFIT applicants.   Those who submitted by noon on July 2 and resubmitted their applications prior to July 31, 2010, will have their applications processed by the end of September.  Those who submitted by noon on July 2 and resubmitted in August will hear back from the OPA by the early fall.  The previous deadline of August 16 to resubmit applications has been extended to September 7.  Applicants who have already resubmitted their applications do not need to resubmit them again.  Resubmitted applications will be processed before new applications in the order that they are received ahead of new applications.

Who gets the extension for domestic content?
Eligible microFIT ground-mounted solar applications, including those from commercial aggregators, submitted before noon on July 2 will be deemed to have met the 2010 domestic content requirements of 40 percent if it is installed and a connection request has been submitted by May 31, 2011. It does not have to be actually connected. Ground-mounted solar applications submitted after noon on July 2 will be required to meet 2011 domestic content levels if they are not installed and connected by Dec. 31, 2010. Applicants for microFIT contracts using other types of technology were not affected by the proposed new price category announced on July 2.

Will aggregators that applied before July 2 receive the original price?
Yes. Eligible participants who applied before July 2 at noon will receive 80.2¢/kWh.

How are you defining "commercial aggregator"?
Our working definition is that commercial aggregators are businesses that lease land or rooftops from individuals for multiple renewable energy projects or have other types of revenue-sharing arrangements with property owners. However, this matter will be discussed by the microFIT advisory panel.

Commercial aggregators are welcome but it is more appropriate for them to develop their projects outside of the microFIT program, which is intended to encourage homeowners, farmers, farm co-operatives, First Nations, small businesses and institutions such as schools, to own and develop small renewable projects.

What happens with aggregators that apply after noon on July 2?
Aggregators who applied between noon on July 2 and the announcement on August 13 will be permitted to remain in the microFIT program and will receive the new price of 64.2 cents/kWh for ground-mounted solar projects. Going forward from August 13, applications for aggregators are temporarily suspended for both the FIT and microFIT projects under 10 kilowatts. The microFIT advisory panel will be consulted regarding how commercial aggregators can most effectively participate.

Who will be on the advisory panel and what are its terms of reference?
The advisory panel will be made up of industry, academic and other stakeholder representatives. The terms of reference will be established once committee members are selected. However, we see the committee providing advice on program evolution including the two-year price review. Its first order of business will be to make recommendations, on an expedited basis, about appropriate contracting provisions for aggregators that reflect the unique nature of commercial micro projects.

When do you expect to announce the members of your advisory panel?
We are in the process of confirming the members of the advisory committee now, and we hope to announce their names as soon as possible, as it is important for the panel to begin work on the recommendations about appropriate contracting provisions for commercial aggregators.

What happens if I don’t resubmit my application by September 7?
Eligible microFIT participants who submitted their applications before noon on July 2 need to resubmit their application by September 7 to receive the original price of 80.2 cents/kWh. Those who have already resubmitted their applications do not need to resubmit them again. Applicants who do not resubmit their applications by the deadline will have them withdrawn from the program. Any new eligible ground-mounted solar applicants submitted in the future will receive the new price of 64.2 cents/kWh.

Will you be holding another webinar to discuss these measures and if so when?
The OPA will host a webinar on August 18 from 2 p.m. to 4 p.m. to answer questions about the price adjustment, the advisory panel and the domestic content requirements. Details on how to participate can be found on the microFIT website, microfit.powerauthority.on.ca.