The FIT program, and the Future

Following the success of Germany’s Renewable Energy Act, which was started in 2000 and within ten years led to nearly 30 billion Euros invested in renewable energy projects, the Ontario government decided to introduce its own feed-in tariff (FIT) program to try and increase renewable energy initiatives in the province. In April of 2009, under Dalton McGuinty’s Liberal majority, the Green Energy Act was passed. Under this program, an energy producer who generates electricity and sells it back to the province’s grid would receive a guaranteed price for the duration of a 20-year contract.

The MicroFIT program was designed for the average homeowner. It allowed up to a 10 kW sized system, and the approval process was simplified when compared to the larger FIT program.

The FIT program was divided up into “small” FIT (10 -500 kW) and “large” FIT (500 kW and larger).

Why was the Program Important?

The rationale behind the feed-in tariff program was quite straightforward. The program started with a large contract payment per kWh (80.2 cents). This caused an increase in Ontario based installers, suppliers, and system designers. The net effect was that the price of PV modules experienced a 75% decrease in the last 5 years.

Can I still apply?

As of December 1st, 2017, the MicroFIT program will no longer be accepting new applications.

What Now?

By the end of the program, contract prices had fallen from 80.2¢/kWh to 28.8¢/kWh. This decrease in price was planned to mirror the decrease in price for installing a system. Once the price falls lower than this, some households begin benefitting more from offsetting their electrical usage instead of selling energy to the grid in a process known as Net Metering. Click the link to learn more. https://www.hydroone.com/business-services/generators/net-metering