The Basics
So what exactly is a FIT or microFIT project? FIT projects are small to large scale renewable energy generation projects that will generate more than 10 kW of electricity. microFIT projects are very small scale renewable energy projects that will generate 10 kW or less. A more compact stream of the FIT program, the microFIT program is specifically designed to allow and encourage the participation of every day people: homeowners, small businesses, farmers and community groups. Both FIT and microFIT tariffs are designed to cover the cost of a proposed project at a reasonable rate of return on the initial investment. All electricity generated is paid for on a per kWh basis according to output, and tariff rates are established and vary according to factors such as: size of the project, type of renewable technology (e.g. solar photovoltaic, wind, waterpower etc.), and the intensity of the resource.
For complete program details and rules visit the Ontario Power Authority at www.powerauthority.on.ca
Background to the FIT and microFIT programs
In October 2009, the Ontario Power Authority (OPA) initiated the provincial government’s FIT (feed-in tariff) and microFIT programs. Authorized by legislation set forth in Green Energy and Green Economy Act (May 2009), these programs are designed to stimulate and promote the development of large and small-scale renewable energy projects, both as a way to address climate change and promote the creation of a green economy. Praised as the most comprehensive tariff plan in North America, the twin FIT and microFIT programs have features and incentives previous programs lacked. First, streamlined approval processes make it faster and easier for those applying to develop their own renewable electricity generation projects. Second, the new programs now offer a system of advanced tariffs, meaning project owners can not only expect financial certainty and security, but also, premium rates allow individuals and groups to create a revenue stream by selling electricity back to the grid. Under the new legislation, the OPA is not only obliged to purchase electricity generated by renewable technologies, but project owners are awarded long term contracts at a fixed rate of payment for the entire term of the contract.
To learn more about the Green Energy Act and sustainable energy visit the Ontario Sustainable Energy Association’s website at www.ontario-sea.org
