A feed-in tariff or FIT is a straightforward way to contract for renewable energy generation by providing standardized program rules, prices and contracts. Ontario's FIT Program is North America's first comprehensive guaranteed pricing structure for renewable electricity production.

Intended to encourage the development of renewable energy projects across Ontario, the FIT Program offers you stable prices under long-term contracts for energy generated from renewable sources, including bioenergy (biomass, biogas and landfill gas), on-shore and off-shore wind, solar photovoltaic (PV) and waterpower.

Under the program, you will be paid a guaranteed price over a 20-year term (40 years for waterpower projects) for all the electricity your project produces and delivers to the province’s electricity grid. The FIT Program prices are designed to cover your typical project costs and provide you with a reasonable rate of return on your investment over the term of the contract.

The FIT Program is divided into two streams - FIT and microFIT. The FIT Program is for renewable energy projects that can generate more than 10 kilowatts (kW) of electricity. Very small projects, at a home or small business, that can generate 10 kW or less come under the microFIT Program.

One of the core goals of the FIT Program is to encourage the development of Aboriginal renewable energy projects. This is done in several important ways:

1. Security payments, required at several points in the program, are lower for projects controlled by an Aboriginal community.

2. In addition to receiving the standard FIT Program price, Aboriginal projects will receive an incentive or “price adder” in proportion to the percentage of equity ownership by the Aboriginal group.

3. The Aboriginal Energy Partnerships Program provides funding and other support for Aboriginal renewable energy projects. For more information, click here.

By encouraging the development of renewable energy in Ontario, the FIT Program will:

• help Ontario phase out coal-fired electricity generation by 2014 - the largest climate change initiative in Canada
• boost economic activity and the development of renewable energy technologies
• create new green industries and jobs.

For more information about this program click here