Ontario Solar FIT Program
| Rebates - Ontario |
Ontario Solar Feed-In-Tariff (FIT) Program - Solar Photovoltaics (PV)
Updated April 1, 2011.
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The Ontario Solar FIT program is considered to be one of the best renewable energy incentive programs in the world. FIT stands for 'Feed-In-Tariff' and is defined as a premium rate paid for clean generation of power. Esentially, a utility company (in this case, the Ontario Power Authority, OPA) will pay electricity generators from renewable energy sources such as wind, solar and microhydro a high dollar amount as an incentive to move towards greener energy production.
The Ontario Solar FIT is the price that the Ontario government buys power for the grid for special cases. In this case, it means that if you generate power from renewables - solar, wind etc - the Ontario Power Authority (OPA) will buy the power from you at a higher rate than the cost of electricity. The reason for the Ontario Solar FIT program is that electricity from renewables still costs more than from coal or natural gas. With an Ontario Solar FIT, it creates an incentive to generate power using solar energy, and it creates an incentive to sell that power onto the grid. Germany and Spain have both implemented FIT programs for solar, which is the main reason those two countries are leaders in the solar energy industry.
There are two classifications for the Ontario FIT program, FIT and microFIT - take a look at these whopping rates:
Ontario MicroFIT program - < 10 kW generation:
microFIT Price Schedule - revised August 13, 2010
Once you have entered into a microFIT contract, you will be guaranteed a fixed price for the electricity you produce. The prices are designed to cover typical capital and operating costs and to provide a reasonable return on the investment over the term of the contract.
| Renewable Technology | Contract Term (years) | Contract Price ¢/kWh | % Escalated |
|---|---|---|---|
| Solar PV | |||
| Rooftop |
20
|
80.2
|
0 |
| Ground-mounted |
20
|
64.2
|
0 |
| Wind |
20
|
13.5
|
20 |
| Waterpower |
40
|
13.1
|
20 |
| Biomass | 20 | 13.8 | 20 |
| Biogas | 20 | 16.0 | 20 |
| Landfill gas | 20 | 11.1 | 20 |
The prices presented above are extracted from the FIT price schedule, Note that the OPA will review the FIT price schedule on a regular basis (approximately every two years).
For technology other than solar PV, 20 percent of the price will escalate annually based on increases in Consumer Price Index.
Please note that if you intend to apply for the on-farm biogas price, the community price adder or the aboriginal price adder, you must apply the FIT Program, regardless of the size of your project. Also, projects under the microFIT program will not receive peak and off-peak pricing.
Domestic Content Requirements
If you are applying for a solar PV microFIT contract, your project must meet domestic content requirements. Domestic content requirements ensure that a portion of your solar PV project is manufactured or produced in Ontario.
Note: domestic content requirements are only required for solar PV projects. They are not required for other fuel types under the microFIT program.
Requirements
- for solar PV projects that reach commercial operation on or before December 31, 2010, the minimum required domestic content level is 40 percent
- for solar PV projects that reach commercial operation on or after January 1, 2011, the minimum required domestic content level is 60 percent
the table below outlines the components or "designated activities" that will contribute to meeting the domestic content requirements.
Designated Activity |
Qualifying Percentage |
| 1. Silicon that has been used as input to solar photovoltaic cells manufactured in an Ontario refinery | 10 |
| 2. Silicon ingots and wafer, where silicon ingots have been cast in Ontario and wafers have been cut from the casting by a saw in Ontario. | 12 |
| 3. The Crystalline silicon solar photovoltaic cells, where their active photovoltaic layer(s) have been formed in Ontario | 10 |
| 4. Solar photovoltaic modules (i.e. panels), where the electrical connections between the solar cells have been made in Ontario, and the solar photovoltaic module materials have been encapsulated in Ontario | 13 |
| 5. Inverter, where the assembly, final wiring and testing has been done in Ontario. | 9 |
| 6. Mounting systems, where the structural components of the fixed or moving mounting systems, have been entirely machined or formed or cast in Ontario. The metal for the structural components may not have been pre-machined outside Ontario other than peeling/roughing of the part for quality control purposes when it left the smelter or forge. The machining and assembly of the mounting system must entirely take place in Ontario (ie bending, welding, piercing, and bolting). | 9 |
| 7. Wiring and electrical hardware that is not part of other designated activities (ie items 1 to 6 and 8 of this table), sourced from an Ontario supplier. | 10 |
| 8. All on- and off- site labour and services. For greater certainty, this designated activity shall apply for all contract facilities. | 27 |
| Total | 100 |
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Ontario FIT program - > 10 kW generation:
FIT program price schedule - revised August 13, 2010 (only hydro, solar and wind shown below - for other renewable energy rates please refer to the OPA website)
Renewable Fuel |
Size tranches |
Contract Price ¢/kWh |
Escalation Percentrage5 |
| Solar PV | |||
| Rooftop | ≤ 10 kW | 80.2 | 0 |
| Rooftop | > 10 ≤ 250 kW | 71.3 | 0 |
| Rooftop | > 250 ≤ 500 kW | 63.5 | 0 |
| Rooftop | > 500 kW | 53.9 | 0 |
| Ground Mounted | ≤ 10 kW | 64.2 | 0 |
| Ground Mounted2,4 | > 10 kW ≤ 10 MW | 44.3 | 0 |
| Wind2 | |||
| Onshore | Any Size | 13.5 | 20 |
| Offshore | Any Size | 19.0 | 20 |
| Waterpower1,2,3 | |||
| ≤ 10 MW | 13.1 | 20 | |
| > 10 MW ≤ 50 MW | 12.2 | 20 |
1 Peak Performance factor applies.
2 Aboriginal price adder and community price adder eligible as outlined in the posted FIT price schedule.
3 In the case of an incremental waterpower project, the incremental project, together with the existing generating facility to which it is incremental, cannot exceed 10 MW
4 In the case of an incremental solar project, the incremental project together with the existing generating facility to which it is incremental cannot exceed 10 MW.
5 The percentage escalated will be applied to eligible renewable fuels as calculated in Exhibit B of the FIT contract.
For more information visit the Ontario Power Authority website at http://fit.powerauthority.on.ca/
When you are ready for your project or have any other questions CONTACT US.
Here is an example of the investment benefit of installing a solar PV system and taking advantage of the Ontario Solar microFIT rates:
1) System : 9.625 kW
2) Cost : $94,000
3) Annual power generation (based on 3.8 average peak sunlight hours per day; 0.77 efficiency factor) : 10,300kW
4) FIT rate : $0.802 / kwH
5) Total Power Revenue per year : $8260
6) Monthly Revenue : $688
The cost of borrowing at today's rates would cost approximately $500 per month to borrow $100,000. If you finance this project, that would mean approximately $300 positive cash flow per month! If you go with a larger sized system, your positive cash flow is even more!
What are you making on your roof right at this moment? Probably $0? How about turning rooftop space into a solid investment rather than just a cover?
Have you thought about installing a Solar PV system on your roof or property and taking advantage of this FIT program?
Call us now to discuss the Ontario Solar FIT program and to implement a Solar PV system for your property!
Start generating power and revenue now!
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