The second completion and performance security is called the incremental notice to proceed security. It is due within 30 days of the notice to proceed being issued. This security is determined on a sliding scale by project size and technology as follows:

• $25 per kilowatt (kW) of contract capacity for solar PV projects
• $10 per kW of contract capacity for other projects
• $5 per kW of contract capacity for Aboriginal or community projects.

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 A of the FIT Rules.

Once the project declares commercial operation, all completion and performance security will be returned to the supplier in the same form as it was given.