Canada’s first renewables feed-in tariff launched

The government of Ontario has launched Canada’s first feed-in tariff (Fit) for renewable power under its Green Energy Act. The move is part of a series of incentives designed to create 500,000 jobs in the renewable energy sector over the next five years.

Homeowners, business owners and private developers can apply to the Fit programme if they use one or more forms of renewable energy, including wind, waterpower, biomass and biogas, solar photovoltaic (PV) power and landfill gas.

The Fit is a guaranteed funding structure that combines stable, competitive prices and long-term contracts for energy generated using renewable sources. Ontario is seeking to double its use of renewable sources through the scheme.

Renewable energy developers participating in the scheme will be required to have a certain percentage of their project costs derived from Ontario goods and labour.

For wind, the requirement will start at 25% and increase to 50% in 2012. While for micro-solar PV, the requirement will start at 40% and increase to 60% in 2011. For large solar PV, half of their project costs will have to be derived from Ontario goods and labour, and this will increase to 60% in 2011.