FIT 5 Pricing for PV installations, effective January 1, 2017
|<=6kW, roof mount||31.1 cents/kWh|
|> 6kW <= 10kW, roof mount||28.8 cents/kWh|
|<=10kW, ground mount||21.0 cents/kWh|
|> 10kW <= 100kW, roof mount||22.3 cents/kWh|
|> 100kW <=500kW, roof mount||20.7 cents/kWh|
|> 100kW <=500kW, ground mount||19.2 cents/kWh|
Other FIT facts:
- Micro-generation systems (<=10kW) have a simplified application process and have no application fee
- Contracts are transferable (i.e. if you sell your house you can sell your contract too)
- Income from the FIT and MicroFIT programs is taxable business income. The investment is depreciable against it and other income (consult your tax advisor)
- Systems are eligible for HST tax credits
If you looked at the MicroFIT program a long time ago, you'll see some changes in the current rules:
In general, the changes appear to strongly favour smaller urban rooftop installations over any other type.
- The OPA will be implementing an Annual Procurement Limit to define how much project capacity it wishes to fund each year. The goal is to reach Ontario's target of 10,700MW of non-hydro renewable by 2015. They have committed to an immediate release of 50MW of microFIT contracts "as soon as possible".
- The OPA has firmed up the application process. Firm timelines will now be in place for each step of the process. This is a step in the right direction as it gives more certainty to the projects that will proceed and does not allow people to sit on project capacity that could otherwise be used by someone else. Once past initial OPA hurdles, Applicants will have 30 days to obtain utility company Connection Agreement, then 6 months to build the project. There are many scenarios whereby the OPA can cancel your application (missed deadlines, mainly). Be extremely vigilant about your application process. Better still, let us do it for you.
- The project limit is now one microFIT contract per individual/farmer, not per property. This does not seem to support increased renewable installations in Ontario, but does hold system capacity for more individuals to participate.
- The definition of Namplate Capacity has changed to the LARGER of PV array size (in kW) or inverter size (in kW). So maximum array size is now 10kWDC, whereas Version 1 permitted over-size arrays on a 10kW inverter bank.
- Ground mounted solar systems are not allowed on (or near) residentially zoned land. If they are on industrial land, they cannot be the primary use of this type of land. MicroFIT systems are still allowed on agricultural land provided residential use is ancillary (most family farms will still qualify, provided they don't abut residential lands). This will, unfortunately, limit ground mounts in rural residential areas, regardless of property size, proximity to neighbours, etc.
- Pricing will be updated every year in January.