2a) To be eligible to participate in the FIT Program, a proposed generating facility must:

(i) constitute a Renewable Generating Facility;

(ii) be located in the Province of Ontario;

(iii) [not have a Contract Capacity of more than 10 MW in the case of PV Projects and 50 MW in the case of waterpower Projects. For greater certainty, an Incremental Project together with the Existing Generating Facility to which it is incremental may exceed these size limits so long as the increase in Gross Nameplate Capacity resulting from the Incremental Project does not exceed these size limits;]

(iv) not be an Existing Generating Facility, unless it is an Incremental Project, in which case only the Contract Capacity relating to the Expansion or Upgrade is

eligible; [NTD: Consider the appropriate additional eligibility requirements for waterpower Projects that are Expansions or Upgrades.]

(v) connect to a Distribution System, a Host Facility or the IESO-Controlled Grid;

(vi) have separate metering suitable for FIT Program data collection and settlement purposes, as described in Section 6; and

(vii) not have or have had a physical or financial power or capacity purchase contract relating to the generation of Electricity by such proposed facility, or other form

of contract relating to Electricity or Related Products relating to such proposed facility. For greater certainty, this includes Standard Offer Contracts.

Note that Existing Generating Facility has the following definition: Existing Generating Facility means an Electricity generating facility, and ancillary lands required by

such generating facility, that is located in Ontario and whose Generating Equipment is commercially operational and is connected to the IESO-Controlled Grid, a Distribution System or supplies Electricity to a Host Facility prior to February 23, 2009. An electricity generating facility is considered to be commercially operational if it receives market revenues and has operated for more than 500 hours per year in any of the past three (3) years.

If the project is10 kW or less, then you will apply through the microFIT program. At this time, we expect that micro-scale projects that do not have a government backed contract should be eligible for the microFIT program. The rules for the microFIT program are still being finalized and will be posted as soon as possible.