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Community Participation

1. Is there an incentive for community-based projects?
2. How does a project qualify for the community adder?
3. Is the community-based price adder available for microFIT projects?
4. Why do community-based projects receive price adders?
5. What is the rationale for the structure of the FIT Program incentives?
6. Is the price adder geared to the percentage of the equity put in by the community?
7. What grants or loans are available to communities to help them participate in the FIT Program?
 
1. Is there an incentive for community-based projects?

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

1. Priority Points
a. Community Participation Project (3 points)
A co-op having a minimum 15% direct economic interest in the project, and
• Small FIT: minimum 35 members of the co-op are property owners in the host municipality
• Large FIT: minimum 50 members of the co-op are property owners in the host municipality
 
b. Community participation projects, where the community investment member has a greater than a 50% direct economic interest in the project, may also qualify as a contract capacity set aside project if they have a minimum of 50 members of the co-op that are property owners in the host municipality.
 
2. Reduced security payments - projects for which a community investment member has a greater than 50 percent direct economic interest are eligible for reduced application security ($5 per kW, regardless of the renewable fuel type)
 
3. Price adders - if a community investment member has 15 percent or more of a direct economic interest in a project, a 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.
 
 
2. How does a project qualify for the community adder?

To qualify for the community adder and priority points, a community investment member must have at least a 15% direct economic interest in the project. A community investment member is defined, for the purposes of the FIT Program, as:

For Large FIT projects or Contract Capacity Set-Aside projects of any size: A Co-op with at least 50 co-op members that have owned real property within the host municipality of the project for at least two years.
 
For Small FIT projects: A Co-op with at least 35 co-op members that have owned real property within the host municipality of the project for at least two years.
 
 
3. Is the community-based price adder available for microFIT projects?

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

 
4. 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.

 
5. 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 investment members to maximize their equity share.

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

Yes. The adder is available based on the economic interest of a community investment member. The contract is structured to allow for increases in the economic interest of a community over time.

 
7. What grants or loans are available to communities to help them participate in the FIT Program?

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 bring green energy projects to life.