The Feed-In Tariff (FIT) program is run by the Independent Electricity Systems Operator (IESO) to encourage development of renewable energy. Through the Feed-In Tariff program the IESO awards 20-year contracts for a set capacity of electricity produced through renewable means (solar, wind, small scale hydro, etc.)
The latest version of the Feed-In Tariff program is known as FIT5. It allows for systems with 10 kW to 500 kW capacity. Like earlier versions, these projects are tied to the grid and the electricity produced is sold to the IESO at a guaranteed price for 20 years. You use and pay for electricity as you always have, while your FIT5 system provides income. FIT5 systems require an application for a contract, a separate generation account, and specific metering requirements, among other reviews and paperwork.
The application period for FIT5 closed in November 2016. No new Feed-In Tariff projects are currently being accepted.
When someone talks about solar generators being paid $0.80 / kWh it is the early days of the Feed-In Tariff program they are talking about. FIT rates started at $0.802 / kWh in FIT1. Rates have decreased every year as the industry grew and components became less expensive and more efficient.
Today FIT5 rates are as low as $0.207 / kWh for large roof-top solar. This is very close to the peak Time-of-Use rate of $0.18 / kWh for residential customers.
If you received a FIT contract and don’t know where to start, give us a call. VCT Group helps businesses who want to save money through solar power get their projects off the ground. Whether you want us to take a project from contract to completion, or just need support for a system installed by a less reliable solar developer, we can help. Our services include:
“We only have one planet, and we need to change how we care for it. We like the fact that clean energy is being generated by our roof. It goes into the grid, then straight back into our house and neighbouring houses.”
Don and Christine Weber
With today’s low FIT5 rates, we believe the return on investment for a new Feed-In Tariff solar contract is often too low to justify the cost of installation. Instead, we encourage businesses to use the simpler Net Metering approach to generating solar energy. A Net Metering solar system, sized to your needs, can provide clean energy for consumption, while the grid provides backup for cloudy days or evenings.
Do you have a system from a previous FIT contract? VCT Group offers operations and maintenance packages to keep your system in optimal condition, generating as much power as possible from each ray of sunlight. The more power you produce, the better your financial return!