Editor’s note: The latest edition of the Ontario Power Authority’s quarterly online newsletter provides extensive information about the province of Ontario’s new Feed-in Tariff (FIT) program. And much of the information will be of great interest to farmers.
The following was excerpted from the newsletter:
Ontario’s new Feed-in Tariff (FIT) Program opens up more potential revenue streams for the Ontario agricultural community. The program is North America’s first comprehensive guaranteed pricing structure for renewable energy production.
The Ontario farming community is already a major participant in making the province more energy efficient through such programs as the Electricity Retrofit Incentive Program and the High Performance New Construction Program. The FIT Program, with its significant financial incentives, will now give farmers the opportunity to expand into renewable energy generating projects.
By encouraging the development of renewable energy, the FIT Program will:
• help Ontario phase out coal-fired electricity generation by 2014 — the largest climate-change initiative in Canada;
• boost economic activity and the development of renewable energy technologies;
• create new green industries and jobs.
The FIT Program, which began accepting applications on Oct. 1, 2009, offers stable prices under long-term contracts for energy generated from renewable sources, including bioenergy (biomass, biogas and landfill gas), onshore and offshore wind, solar photovoltaic and waterpower.
Prices under the FIT program are designed to cover project costs and provide a reasonable rate of return on the investment over the term of the contract. The prices paid for the electricity produced vary according to the renewable energy source used and the size of the project.
The farming community can participate in the FIT or the microFIT programs. FIT is for renewable energy projects that generate more than 10 kilowatts (kW) of electricity; microFIT is for projects generating 10 kW or less.
Once a farmer has entered into a contract, he or she will receive a fixed price for the electricity produced over a 20-year contract period, except for waterpower projects, for which the contract period is 40 years.
Farmers with existing renewable energy projects 500 kW or less in size may transition to the FIT and microFIT programs. These projects will be deemed to have met the domestic content requirements of the programs.
The Ontario Power Authority (OPA) is responsible for implementing the FIT Program, which was enabled by the Green Energy and Green Economy Act, 2009, which became law on May 14, 2009.
The OPA’s FIT website provides detailed information on the program, including pricing, program documents, connection availability assessment and contract requirements. For more information please visit fit.powerauthority.on.ca.
The microFIT Program provides you with an opportunity to develop a very small or “micro” renewable electricity generation project of 10 kilowatts (kW) or less on your farm or small business. The microFIT Program is a simpler, streamlined program for small renewable energy projects under the umbrella of the Feed-in Tariff (FIT) Program. The renewable energy resources are the same as those in the FIT program: solar photovoltaic, wind power, waterpower, biomass and biogas.
The microFIT Program will pay a guaranteed price for all the electricity your project produces for 20 years or 40 years for waterpower. To participate in the program you must apply for a microFIT contract online.
To obtain a microFIT contract, your project must meet the program eligibility requirements, which include:
• be 10 kW or less in size and located in Ontario;
• be connected, directly or indirectly, to the distribution system;
• have metering that is suitable for data collection and payment calculation.
All microFIT projects require a separate meter so that the amount of electricity produced by the project can be accurately measured.
For information about the OPA’s microFIT Program, visit microfit.powerauthority.on.ca.
Existing renewable energy projects can take advantage of FIT and microFIT programs. Ontario farms and agricultural businesses that developed renewable energy projects before the launch of the FIT Program — such as wind and solar generation under the Renewable Energy Standard Offer Program (RESOP) — may be able to transition to the FIT and microFIT programs.
Renewable technology projects with a capacity of 500 kilowatts (kW) or less that were purchased or in service before October 1, 2009, are eligible and will be deemed to have met the domestic content requirements of the programs.
Generators who have not been operating under an OPA contract will receive a 20-year (or 40 years if for waterpower) FIT or microFIT contract. Generators who have been operating under a RESOP contract will receive a contract representing the balance of a 20-year FIT or microFIT contract.
Are you thinking about developing a groundmounted solar project on agricultural lands?
The OPA has provided the following guidelines that balance the benefits of more renewable energy with the need to protect Ontario’s prime agricultural land.
The Canada Land Inventory (CLI) categorizes agricultural land into seven classes, based on climate and soils. CLI Class 1 soils have the highest and Class 7 soils the lowest capability to support agriculture.
CLI is maintained and managed by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA).
The Minister of Energy and Infrastructure directed the Ontario Power Authority not to enter into contracts for ground-mounted solar photovoltaic (PV) projects greater than 100 kilowatts (kW) whose facilities are located on:
• lands comprised of CLI Class 1 or 2 soils;
• specialty crop areas within the meaning of the 2005 Provincial Policy Statement.
In addition, there is a 500-megawatt cap for the province for FIT projects on Class 3-designated soils.
The restrictions related to ground-mounted solar PV projects and Classes 1, 2 and 3 soils do not apply to First Nations reserve lands or to lands zoned for non-agricultural purposes as of October 1, 2009.
All ground-mounted solar PV projects greater than 100 kW must submit evidence that the proposed ground-mounted solar PV facility is located entirely on land with Class 3 to 7 soils or unclassified land.
