Ontario

(Last update: 3rd April, 2012/ Source: Opens external link in new windowpowerauthority.on.ca, Opens external link in new windowwind-works.org)

The feed-in tariff program in Ontario was implemented through the Green Energy and Green Economy Act, on May 14th 2009.

Ontario’s FiT program is North America’s first comprehensive guaranteed pricing structure for renewable electricity production.

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Technology

The following technologies are eligible for the feed-in tariff program.

Solar energy: Eligible
Ground-mounted, rooftop/ Capacity: Up to 10 MW per property

Wind energy: Eligible
On- and off-shore

Hydroelectricity: Eligible
Naturally flowing water/ Capacity: up to 50 MW

Biogas technology: Eligible
Biogas on farm/ Capacity: Up to 250 kW
Landfill gas/ Capacity: > 10 MW

Biomass technology: Eligible
Renewable biomass/ Capacity: > 10 MW

The FiT program is divided into two streams – FiT and microFiT.

Since August 2010, the microFiT applies to projects with a capacity of 10 kW or less. To encourage the development of “micro scale” renewable energy projects across the province.

The eligible technologies for the program are the same as for the FiT program.

In addition to the standard prices, it is currently proposed that Aboriginal and Community power projects be eligible to receive additional payment per kilowatt-hour of energy produced by their renewable energy installations. The amount of additional payment (or “adder”) depends on the level of equity ownership the Aboriginal or community proponent has in the project. The maximum adders are based on the type of renewable energy technology.

To encourage the development of Aboriginal and community-based projects, these projects have a reduced security payment.

Payment scheme

Tariff calculation

The amount of tariff is the posted FiT price (varies by technology and plant size) multiplied with

  • 1, 35 for peak periods (11 a. m. to 7 p. m. on business days
  • 0, 9 for off-peak periods (including weekends)

There has been a "Proposed revised solar PV feed-in tariffs for Ontario in 2012", which aims at explaining the different assumptions between microFIT and FIT calculations (December 2011).

Degression rate

Solar energy:

From 10% to 30% from the program's original tariffs launched in the fall of 2009.

Wind energy:

15% cut in tariff as of April 2012.

Duration of tariff

Payments are given for the duration of 15 to 20 years.(the term is 40 years for waterpower projects)

Finance mechanism

The costs for the feed-in tariff program are shared among all consumers.

Purchase obligation

Ontario’s Power Authority (OPA) is obliged to purchase all electricity generated from renewable technologies under the feed-in tariff program.

Legal analysis

In response to the government's two-year feed-in tariff (FIT) review process, the Green Energy Act Alliance and Shine Ontario Association have joined forces to present a clear path for renewable energy in Ontario. To access the detailed review, please click here.

If you are a lawyer from Ontario, and interested in submitting an analysis, or providing more up-to-date information about the current status of the renewable energy policy, we would be happy to hear form you. Contact us

More information

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