Canada: Fit Program Updates

Last Updated: September 10 2013
Article by Linda Bertoldi, Mark J. Rodger and Shane Freitag

1. Ontario Ministry of Energy Direction to the Ontario Power Authority on Renewable Energy Programs


On August 16, 2013, the Minister of Energy issued a direction to the Ontario Power Authority ("OPA") on various matters related to the administration of renewable energy and conservation programs. This direction contains many important new developments in relation to the province's Feed in-Tariff Program ("FIT Program") that are summarized below.

Renewable Energy Support Programs

In consultation with the Ministry of Energy, the OPA is directed to undertake an evaluation of opportunities to improve, streamline and better align support programs under the FIT Program. This evaluation process should ensure that these support programs meet the needs  of First Nations, co-operatives, municipalities and other public sector entities as they develop renewable energy projects. The OPA is instructed to report back to the Ministry of Energy by January 31, 2014.

Development and approvals funding for Small FIT1 projects will remain on a per project basis but is being reduced to reflect the lower development costs for Small FIT projects compared to larger renewable projects.

In addition, two new streams of funding support  of $500,000 per year are being made available to municipalities and public sector groups that are in
the preliminary stages of developing small to medium sized FIT projects. The OPA is also instructed to make the remaining funding for education and capacity building for First Nations, municipalities, public sector organizations and co-operatives available to them now.

Contract Capacity Set-Asides ("CCSA")

The direction also makes changes to the events of default for renewable energy projects with a FIT contract that have received priority under the existing FIT rules. "A drop in equity participation to 50 per cent or less, or for the purposes of a Community CCSA project, a drop of local property owner membership below 50 members, shall only be grounds for termination of the contract if it occurs before the fifth anniversary of achieving commercial operation. A minimum participation level of 25 per cent must be maintained for the full term of the contract".

Moreover, the direction now provides that it is not an event of default if prior to the fifth anniversary of achieving commercial operation, a drop of local
property owner membership below 50 members and of equity participation to 50% or less occurs where the drop occurs as a result of the death or departure from the community of one or more property owner members.

Domestic Content Rule Changes

In order to bring the FIT program into compliance  with the World Trade Organization ruling on May 24th, 2013, the government is taking an interim step of requiring the OPA to reduce the minimum domestic content levels in new FIT procurements as noted below:

  • For  on-shore  wind  facilities, the  minimum domestic content level shall be 20 per cent.
  • For solar photovoltaic, (PV) facilities utilizing crystalline  silicon  PV  technology, the  minimum domestic content level shall be 22 per cent.
  • For solar photovoltaic, (PV) facilities utilizing thin-film PV technology, the minimum required domestic content level shall be 28 per cent.
  • For solar photovoltaic (PV) facilities utilizing concentrated  PV  technology  the  minimum required domestic content level shall be 19 per cent.

These new domestic content levels will apply to the Fall 2013 procurement window for Small FIT, microFIT and pilot solar projects on unconstructed
buildings and any unused capacity for the Small FIT window that closed on January 18, 2013.

Annual Small FIT Procurement Schedules

Beginning in 2014, the OPA is required to prepare annual schedules of planned Small FIT application windows. These schedules will be published in January of each year.

Changes to the Industrial Transmission Connected Electricity Efficiency Program

This energy-efficiency program is also referred to as the "Industrial Accelerator Program" ("IAP") and was established by ministerial direction in 2010 to reduce electricity use and increase competitiveness for  large industrial companies directly connected to the transmission system by providing financial incentives for investments in electriticy-saving projects. In order to improve access to this program, the OPA is instructed to amend the IAP to:

  • Include non-industrial transmission connected consumers. Program criteria will change to enable the participation of industrial, commercial and institutional consumers who have projects or facilities connected to the IESO-controlled grid and who are not otherwise eligible for conservation incentives from any local distribution company;
  • Include conservation measures addressing equipment replacement and retrofits and new construction. The OPA will design and deliver new incentives for projects completed before June 1, 2017 which will be added to existing IAP measures.

Participants in the Industrial Electricity Incentive Program will not be permitted to apply for the new IAP measures.

2. Ontario Power Authority Updates Price Schedule for FIT and microFIT Projects

Effective August 26, 2013, the OPA introduced an updated price schedule for the FIT and microFIT programs and for FIT price adders for Aboriginal Participation Projects, Community Participation Projects and  Municipal or Public Sector Entity Participation Projects. The OPA's revised price schedule and FIT Price Adders are as follows:

FIT/microFIT Price Schedule (August 26, 2013)

Renewable Fuel Project Size Tranche* Price (¢/kWh) Escalation Percentage**
Solar (PV) (Rooftop) ≤ 10 kW 39.6 0%
> 10 ≤ 100 kW 34.5 0%
> 100 kW 32.9 0%
Solar (PV) (Non-Rooftop) ≤ 10 kW 29.1 0%
> 10 kW 28.8 0%
On-Shore Wind All sizes 11.5 20%
Waterpower All sizes 14.8 20%
Renewable Biomass All sizes 15.6 50%
On-Farm Biogas ≤ 100 kW 26.5 50%
> 100 kW ≤ 250 kW 21.0 50%
Biogas All sizes 16.4 50%
Landfill gas All sizes 7.7 50%

* The FIT program is available to Small FIT projects; that is, projects generally ≤ 500 kW.

** Escalation Percentage based on the Consumer Price Index will be applied to eligible Renewable Fuels as calculated in the FIT Contract. The Base Date is January 1 of the year in which the Project achieves commercial operation, unless the Project achieves commercial operation in October, November, or December, in which case the Base Date is January 1 of the following year.

FIT Price Adders

  Aboriginal  Participation Project Community  Participation Project Municipal or Public Sector Entity Participation Project
Participation Level (Equity) >50% >15% ≤ 50% >50% >15% ≤ 50% > 50% >15% ≤ 50%
Price Adder (¢/kWh) 1.5 0.75 1.0 0.5 1.0 0.5

Note: The above table applies to all FIT Project sizes and all technologies except Solar (PV) (Rooftop).

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions