Community Participation

 
Is there an incentive for community-based projects?

Yes, there are two incentives to encourage participation in the FIT Program by community groups:

  1. reduced security payments - projects for which a community group has a 50 percent interest are eligible for reduced application security ($5 per kW, regardless of the renewable fuel type)
  2. price adders - if a community group has 10 percent or more of an economic interest in a project, a proportionate share of an applicable price adder applies.

In addition to the FIT Program, the Community Energy Partnerships Program provides financial grants to community groups that are developing renewable energy projects.

For more information, visit www.communityenergyprogram.ca.

How does a project qualify for the community adder?

For the purposes of the FIT Program, a community will have to meet community participation requirements found in the FIT Rules. Community is defined to include:

  1. one or more Ontario residents directly investing in any size renewable energy project
  2. an Ontario-based registered charity
  3. an Ontario-based not for profit organization
  4. a co-operative owned by residents of Ontario.
Is the community-based price adder available for microFIT project?

No, to qualify for the adder you would have to apply to the FIT program.

Why do community-based projects receive price adders?

Community-based projects receive incentives to participate because these projects have additional barriers and higher project costs than other projects driven by commercial developers. An additional price incentive is available to community-based projects to help ensure they are financially viable. Additional incentives and support mechanisms are intended to help level the playing field for groups that would otherwise be excluded from developing renewable energy projects.

What is the rationale for the structure of the FIT Program incentives?

Incentives to encourage the participation of community groups were structured to encourage partnerships with local communities and to encourage community partners to maximize their equity share.

Is the price adder geared to the percentage of the equity put in by the community?

Yes. The adder is available on a sliding scale based on the equity interest of a community group. The contract is structured to allow for increases in the economic interest of a community over time.

What grants or loans are available to communities to help them participate in FIT?

Through the Community Energy Partnerships Program the province provides one-time support to community groups to assist with the "soft" or developmental costs associated with new renewable energy projects. This helps communities in Ontario, including farmers, co-ops and non-profit organizations bring green energy projects to life.

What grants or loans are available for Ontario municipalities wishing to participate in the FIT Program?

Through the Municipal Renewable Energy Program, the province will provide support to municipalities for costs associated with new renewable energy projects.

While many of these costs are, and will continue to be, appropriately charged to the developers themselves, it is expected some additional costs may arise.

The Municipal Renewable Energy Program is currently under development. Please send your inquiries to MREP@powerauthority.on.ca.