The application security payment must be made separately from the application fee. The security payment will be refunded by the OPA when the final FIT contract is executed and a project completion and performance security has been paid.

For projects that are not capacity allocation-exempt facilities (see below), the application security is:

• $20 per kilowatt (kW) of contract capacity for solar PV projects
• $10 per kW of contract capacity for all other projects
• $5 per kW of contract capacity for Aboriginal and community projects.

There is no GST charged on the application security.

The security must be in one of the following forms:

• certified cheque
• bank draft
• irrevocable and unconditional standby letter of credit issued by a financial institution listed in either Schedule I or II of the Bank Act (Canada), or other financial institution with a minimum credit rating of one of the following:

  (i) A- with S&P
  (ii) A3 with Moody's
  (iii) A low with DBRS
  (iv) A with Fitch IBCA.

The application security letter of credit form is provided in Exhibit B of the FIT Rules.

Some projects are not required to make security payments. These are projects defined as capacity allocation-exempt by the Distribution System Code. They generally fall into two categories:

• projects with no more than 250 kW of rated generating capacity where the facility is connected to a less than 15 kilovolt (kV) line
• projects with no more than 500 kW of rated generating capacity where the facility is connected to a 15 kV or greater line.