This section contains a brief overview of the major milestones necessary for the effective management by the Supplier of a FIT Contract.
Please note: This page is only a brief overview of certain matters included in the FIT Contract. Much of the detail contained in the FIT Contract is not set out in this section. In addition, this page does not identify the defined terms set out in Appendix 1 – Standard Definitions. You are strongly encouraged to review the FIT Contract, including, without limitation, the FIT Rules and Appendix 1 – Standard Definitions in order to understand the full extent of the contractual provisions and the obligations of a Supplier.
The FIT Rules, Contract, and Standard Definitions can be found on the FIT Archive page.
To the extent that there is any inconsistency or conflict between the content of this FIT website and the FIT Contract, the FIT Contract governs. The content of this website is not binding on the IESO and shall have no force, effect or interpretative value.
The FIT Contract contains provisions which describe the specific time frame within which the Supplier must achieve Commercial Operation of the Facility. These time frames depend on the Renewable Fuel type, and are specified on the FIT Contract Cover Page as well as in Exhibit A of the FIT Contract.
As set out in Exhibit A of the FIT Contract, the timelines for reaching Commercial Operation are as follows:
- Eighteen (18) months* following the Contract Date for Solar (PV)(Rooftop)
- Three (3) years following the Contract Date for Solar (PV) (Non-Rooftop), Biogas, Biogas [on-farm], Landfill Gas, Renewable Biomass and On-Shore Wind Facilities
- Five (5) years following the Contract Date for Waterpower Facilities.
*Suppliers should refer to Rooftop Portfolios to understand how applying to have a group of solar rooftop Facilities, if applicable, could affect the Milestone Date for Commercial Operation.
All of the Prescribed Forms necessary for a Commercial Operation submission are available below.
A brief overview of the major milestones, and major actions that may be necessary, for effective management by the Supplier of a FIT Contract include:
For a Facility connected to the Distribution System, the local distribution company (LDC) will make generation payments to the Supplier.
For a Facility connected to the Transmission System, the IESO will pay the Supplier for the electricity supplied to the grid at the market price (i.e., the Hourly Ontario Electricity Price or HOEP). The IESO will then pay the Supplier for the balance of the FIT Contract Price – the Contract Price less the IESO payment – so that the Supplier receives the full FIT Contract Price.
Domestic Content Report
After the facility reaches commercial operation, the Supplier must submit a report within 60 days outlining how the facility has met the domestic content requirements, as applicable. When completing the domestic content report for submission to the IESO, please also refer to the following final interpretations documents:
- Final Interpretations for Inverters (October 4, 2010)
- Final Interpretations for Mounting Systems (April 26, 2011)
Additional Security Requirements
After Commercial Operation is achieved, additional security may be required for FIT Contracts with a contract Capacity greater than or equal to 1,000 kW. Security will be requested if the average Hourly Ontario Energy Price (HOEP) over a six-month period is greater than 75 per cent of the contract Price.
In accordance with the FIT Contract the IESO may audit information provided in accordance with the Contract. The IESO may, upon 2 Business Days prior notice, inspect the Facility and all relevant records for the purposes of ascertaining compliance with the Contract. The IESO may audit any FIT Contract for compliance with the Minimum Required Domestic Content Level as stated on the FIT Contract Cover Page.
You are strongly encouraged to review the FIT Contract, including the FIT Rules and Standard Definitions, in order to understand the full extent of the contractual provisions and the obligations of a Supplier.