Ontario MicroFIT Contract Guide
Ontario MicroFIT Contract Guide
Ontario Power Authority (“OPA”) and _____________________________ (“Supplier”) hereby enter into
this microFIT Contract. OPA and Supplier are referred to in this microFIT Contract jointly as “Parties” or
individually as “Party.” In consideration of the mutual promises and obligations stated in this agreement,
the Parties agree as follows:
1. DOCUMENTS INCLUDED; DEFINED TERMS
This Contract includes the Agreement and the following appendices, which are specifically
incorporated herein and made a part of this Agreement (check all that apply):
Appendix A –Definitions
Appendix B – Calculation of Indexed Contract Price (use if Percentage Escalated applies)
Appendix C – Solar PV Schedule (use if solar photovoltaic facility)
Appendix D-1 – Directly Connected Facility Schedule (use if Directly Connected Facility)
Appendix D-2 – Indirectly Connected Facility Schedule (use if Indirectly Connected Facility)
Appendix E – Incremental Project Schedule (use if Incremental Project)
Appendix F – LDC Schedule (use if LDC is Supplier)
This agreement and the Appendices incorporated herein and made a part hereof are together referred
to as this “Contract.”
2. GENERATING FACILITY
2.1. Facility. This Contract governs OPA’s procurement of electricity from the electrical generating
facility (hereinafter referred to as the “Facility”) described in this Section.
2.1.1. The Facility is connected directly or indirectly to the ____________________ (“LDC”)
distribution system.
2.1.2. Supplier (check one):
is not the same legal entity as LDC and the Supplier hereby appoints LDC as its
agent for purposes of supply of the electricity generated by the Facility, following its
delivery to the LDC’s distribution system.
is the same legal entity as LDC.
2.1.3. The name and account number the LDC associates with the Facility is:
Name:
any Sales Tax incurred by OPA in connection with this Contract. OPA may reduce and
offset any amount due to Supplier by the amount of any loss or damage suffered by OPA
or amount assessed against OPA, arising out of a failure by Supplier to comply with this
Section.
4.4.4. Supplier shall refund to OPA any amount collected as, or on account, of Sales Tax, that
was collected in error by Supplier from OPA. OPA may reduce and offset any amount
due to Supplier by the amount of such refund that is due to OPA.
4.4.5. Supplier shall notify OPA promptly of any change in its Sales Tax registration status,
including becoming a Sales Tax registrant or ceasing to be a Sales Tax registrant.
4.4.6. If the Supplier is a non-resident of Canada, as that term is defined in the ITA, then
Generation Payments shall be reduced by the amount of any applicable withholding or
similar taxes. OPA may reduce or offset any amount due to Supplier by the amount of
withholding taxes (and interest thereon) assessed against the OPA with respect to the
Generation Payments paid to the Supplier. OPA may also reduce and offset any amount
due to Supplier by the amount of any loss or damage suffered by OPA or amount
assessed against OPA, arising out of any misrepresentation by Supplier as to its
residency.
4.4.7. Supplier shall notify OPA promptly if it becomes a non-resident of Canada, as that term
is defined in the ITA.
4.4.8. OPA may, on not less than 30 days’ prior notice to Supplier, designate an alternative
settlement agent or implement alternative settlement mechanics to those set out in Section
4.4.1 and 4.4.2.
5. ENVIRONMENTAL ATTRIBUTES
5.1. Transfer. Supplier hereby transfers and assigns to, or to the extent transfer or assignment is not
permitted, holds in trust for, OPA who thereafter shall retain, all rights, title, and interest in all
Environmental Attributes associated with the Facility.
5.2. Action to Transfer. Supplier shall from time to time during the Term, upon written direction of
OPA, take all such actions and do all such things necessary to effect the transfer and assignment
to, or holding in trust for, OPA, all rights, title, and interest in all Environmental Attributes as set
out in Section 5.1.
5.3. Action to Register. Supplier shall from time to time during the Term, upon written direction of
OPA, take all such actions and do all such things necessary to certify, obtain, qualify, and
register with the relevant authorities or agencies Environmental Attributes that are created and
allocated or credited with respect to the Facility pursuant to Laws and Regulations from time to
time (collectively, the “Regulatory Environmental Attributes”) for the purposes of transferring
such Regulatory Environmental Attributes to OPA in accordance with Section 5.1.
5.4. Cost Reimbursement. The Supplier shall be entitled to reimbursement of the cost of complying
with a direction under Section 5.2 or Section 5.3, provided that OPA approves such cost in
writing prior to the cost being incurred by Supplier. The Supplier shall not be required to incur
any material cost associated with complying with a direction under Section 5.2 or Section 5.3
where the Supplier has sought approval from the OPA for such cost and the OPA has not
approved same.
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6.4.7 The Supplier was, at the time of the Application, and continues to be as of the date of the
microFIT Contract, an Eligible Participant.
7. COVENANTS
Supplier covenants that throughout the Term:
7.1. Facility Characteristics
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7.1.1. The Supplier shall not do anything nor omit to do anything that would cause the
information specified in paragraphs 2.1.2, 2.1.4, 2.1.5, 2.1.6, 2.1.7 and 2.1.8 to be untrue
or incorrect in any respect.
7.1.2. The Supplier shall notify the OPA promptly of any change to the information contained in
paragraphs 2.1.1 and 2.1.3.
7.2. Metering.
7.2.1. The Facility’s meter will, at all times, be exclusive to the Facility.
7.2.2. The Facility’s meter will, at all times, be owned and operated by LDC.
7.3. Eligibility
7.3.1. The Supplier at all times will be an Eligible Participant.
8. GENERAL CONDITIONS
8.1. Access Rights. OPA, its authorized agents, employees and inspectors shall have the right to
inspect the Facility on reasonable advance notice during normal business hours and for any
purposes reasonably connected with this Contract or the exercise of any and all rights secured to
OPA by law.
8.2. Electricity. In no event shall Supplier have the right to procure electricity from sources other
than the Facility for sale or delivery pursuant to this Contract or substitute such electricity.
8.3. Meter and Meter Data.
8.3.1. Supplier shall provide, and shall use reasonable efforts to cause LDC to provide, the OPA
and its authorized agents, agents employees and inspectors with access to the Facility’s
meter for the purpose of reading, recording and downloading data, all upon not less than
two days’ advance notice from OPA to Supplier or LDC, as applicable.
8.3.2. Supplier acknowledges that it has irrevocably authorized LDC to release to OPA any
information or data relating to the Facility which may be required by OPA for the
purposes of administering the Contract. Supplier shall recognize and maintain OPA’s
rights in this regard, and shall provide similar authorizations to other agencies, settlement
agents and third parties, where requested by OPA.
8.4. Freedom of Information. Supplier acknowledges that OPA is subject to the Ontario Freedom of
Information and Protection of Privacy Act, R.S.O. 1993, c. F.31 (“FIPPA”) and that any
information supplied by the Supplier to or held about the Supplier by the OPA may be subject to
disclosure by OPA in accordance with the requirements of FIPPA.
8.5. Disclosure of Information. Supplier consents to and waives all rights or claims to compensation
of any kind in respect of use or disclosure by OPA or LDC to the Ministry of Energy and
Infrastructure or any other Ontario government institution of information about the microFIT
Supplier, the Supplier’s electricity generation, pricing provisions and payments, generating
capacity, electricity generation or other information about the Supplier for all program analysis,
assessments, reporting, administrative, operational or planning purposes or for purposes of
publicity or public awareness regarding the microFIT program or similar programs for
alternative electricity generation, electricity conservation or electricity generating technology,
use or operations.
8.6. Statement Copies. Supplier shall, at the request of OPA, provide OPA with copies of all
settlement statements, invoices and all other correspondence between Supplier and LDC relating
to the Facility and/or any Generation Payment and authorizes the OPA to request the same from
LDC.
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9. NOTICES
9.1. Address for Notice. All notices and communication pertaining to this Contract shall be in
writing and shall be transmitted via email, or if email notification is unavailable, via facsimile,
courier or hand delivery and addressed to the other party as follows:
If to OPA: [email protected]
Subject: microFIT – [Reference Number]
or, if email is unavailable
Ontario Power Authority
120 Adelaide Street West
Suite 1600
Toronto, Ontario
M5H 1T1
Attention : Director, Contract Management
Facsimile : 416-969-6071
9.2. Change of Contact Information. Either Party may, by written notice to the other, change its
contact information for notices and communication.
9.3. Timing of Notice. Notice or communication delivered or transmitted as provided above shall
be deemed to have been given and received on the day it is transmitted (if by e-mail or
facsimile) or received (if by courier or hand delivery), provided that it is transmitted or
received on a Business Day prior to 5:00 p.m. local time in the place of receipt. Otherwise
such notice shall be deemed to have been given and received on the next following Business
Day.
10. TERMINATION
10.1. On Notice. Supplier may terminate this Agreement on thirty days prior written notice to the
OPA.
10.2. For Breach. OPA may terminate this Contract if Supplier breaches any term of this Contract
and fails to correct such breach within 10 Business Days of receiving notice of such breach by
the OPA or if any representation or warranty made by the Supplier is untrue.
10.3. Automatic. This Contract will terminate automatically upon, and contemporaneously with, the
termination of the Connection Agreement. The Supplier will notify the OPA immediately
upon the termination of the Connection Agreement.
11. AMENDMENT
No amendment to or modification of this Contract shall be enforceable unless reduced to writing and
executed by both Parties.
12. ASSIGNMENT
The Supplier may assign its rights and obligations under this Agreement with the consent of the OPA,
which shall not withhold its consent unreasonably. The Supplier may only assign its rights and
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obligations under this Agreement to another Eligible Participant. The OPA shall have the right to assign
its rights and obligations under this Contract without the consent of the Supplier.
13. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the Province of
Ontario and the federal laws of Canada applicable in the Province of Ontario.
Appendix A
DEFINITIONS
“Application” means the application submitted by the Supplier resulting in this Agreement, together with
all clarifications, additional information, documents and statements in respect thereof provided by the
Supplier.
“Agreement” means the body of the Contract and excludes any Appendices.
“Base Date” means the effective date, specified as the “Base Date”, of the FIT Price Schedule used to
determine the Contract Price.
“Business Day” means any day that is not a Saturday, a Sunday or a legal holiday in the Province of
Ontario.
“Connection Agreement” has the meaning given to it in Section 6.1.1 of the Agreement.
“Connection Assets” has the meaning given to it in the Distribution System Code.
“Connection Impact Assessment” means an assessment conducted by the LDC to determine the impact
on the distribution system of connecting the Facility to its distribution system.
“Connection Point” means the Facility’s point of interconnection with the LDC distribution system.
“Contract” has the meaning given to it in Section 1 of the Agreement.
“Contract Price” has the meaning given to it in Section 4.1 of the Agreement.
“CPI” means the consumer price index for “All Items” published or established by Statistics Canada (or
its successor) for any relevant calendar month in relation to the Province of Ontario.
“Directly Connected Facility” means a Facility which is connected to the LDC distribution system in an
arrangement that is independent of any associated load or associated premises.
“Distribution System Code” means the “Distribution System Code” established and approved by the
Ontario Energy Board as amended or replaced from time to time.
“Domestic Content Level” has the meaning given to it in the microFIT Rules.
“Eligible Participant” has the meaning given to it in the Eligible Participant Schedule.
“Eligible Participant Schedule” means the schedule, established by the OPA and amended from time to
time in the OPA’s sole discretion, that defines persons and entities who are eligible to submit an
Application and who are eligible to be Suppliers.
“Environmental Attributes” means the interests or rights arising out of attributes or characteristics
relating to the environmental impacts associated with the Facility, now or in the future, and the right to
quantify and register these with competent authorities, including: (a) all right, title, interest and benefit in
and to any renewable energy certificate, credit, reduction right, offset, allocated pollution right,
allowance, emission reduction allowance or allowance set aside or other proprietary or contractual right,
whether or not tradable; (b) rights to any fungible or non-fungible attributes or entitlements relating to
environmental impacts, however arising; (c) any and all rights, title and interest relating to the nature of
an energy source as may be defined and awarded through applicable laws and regulations or voluntary
programs; and (d) all revenues, entitlements, benefits, and other proceeds arising from or related to the
foregoing. For greater certainty, in the event that any governmental or non-governmental agency, whether
provincial, federal, national or international in scope or authority, creates or sanctions a registry, trading
system, credit, offset or other program relating to Environmental Attributes or their equivalent, the term
“Environmental Attributes” shall include the rights or benefits created or sanctioned under any such
program or programs to the extent available as a result of, or arising from the Facility.
“Existing Generation Facility” means an electricity generating facility that is located and which is
connected to the LDC distribution system.
“Facility” has the meaning given to it in Section 2.1 of the Agreement.
“FIT Price Schedule” means the schedule of prices established by the OPA from time to time, in its sole
discretion, that will be used to determine the Contract Price for a FIT Contract, differentiated by
Renewable Fuel, capacity and other factors as determined by the OPA.
“FIT Program Facility” means any Renewable Generating Facility that is the subject of a contract or an
application pursuant to the OPA’s Renewable Energy Feed-In Tariff Program.
“Generation Payment” has meaning given to it in Section 4.4 of the Contract.
“Governmental Authority” means any federal, provincial, or municipal government, parliament or
legislature, or any regulatory authority, agency, tribunal, commission, board or department of any such
government, parliament or legislature, or any court or other law, regulation or rule-making entity, having
jurisdiction in the relevant circumstances, including the Ontario Energy Board and the Electrical Safety
Authority.
“GST” means the goods and services tax exigible pursuant to the Excise Tax Act (Canada) or any
successor thereto.
“HST” means the harmonized sales tax exigible pursuant to the Excise Tax Act (Canada) or any successor
thereto, including the “Harmonized Sales Tax” proposed in the March 26, 2009 Ontario Budget.
“Incremental Project” means any change to an Existing Generation Facility which results in an increase
in the installed capacity of the Existing Generation Facility.
“Indexed Contract Price” has the meaning given to it in Section 4.3 of the Agreement.
“Indirectly Connected” means a Facility which is connected to the LDC distribution system in an
arrangement which is associated with a load customer or premises.
“ITA” means the Income Tax Act (Canada).
“kWh” means kilowatt-hour.
“Laws and Regulations” means:
(a) applicable federal, provincial or municipal laws, orders-in-council, by-laws, codes, rules,
policies, regulations and statutes;
(b) applicable orders, decisions, codes, judgments, injunctions, decrees, awards and writs of
any court, tribunal, arbitrator, Governmental Authority or other person having
jurisdiction;
(c) applicable rulings and conditions of any licence, permit, certificate, registration,
authorization, consent and approval issued by a Governmental Authority;
(e) the Retail Settlement Code and the Distribution System Code.
(a) be a Renewable Generating Facility, which uses a Renewable Fuel that is included in the
FIT Price Schedule;
(c) not be or have been an OPA contracted facility, except in the case of Incremental
Projects, where the existing Renewable Generating Facility may be or may have been an
OPA contracted facility;
(d) not have a Nameplate Capacity greater than 10 kW. If the eligible microFIT Contract is
for an Incremental Project, then the sum of the Nameplate Capacity of the existing
Renewable Generating Facility and the Nameplate Capacity of the Incremental Project
must not be greater than 10 kW;
(e) if there is another FIT Program Facility located on the same property as the Facility,
which uses the same type of Renewable Fuel as the Facility, the sum of the Nameplate
Capacities of all such facilities must not be greater than 10kW;
(f) be connected, directly or indirectly, to the IESO-controlled grid via a distribution system;
and
(g) have separate metering suitable for microFIT Program data collection and settlement
purposes.
“Regulatory Environmental Attributes” has meaning given to it in Section 5.3 of the Contract.
“Renewable Energy Approval” means an approval issued by the Ontario Ministry of the Environment
under Section 47.3 of the Environmental Protection Act (Ontario).
“Renewable Generating Facility” means an electricity-generating facility that generates electricity
exclusively from a Renewable Fuel.
“Renewable Fuel” has meaning given to it in the microFIT Rules.
“Retail Settlement Code” means the “Retail Settlement Code” established and approved by the Ontario
Energy Board as amended or replaced from time to time.
“Sales Tax” means GST or HST, as applicable.
“Settlement Price” means the price at which electricity sales pursuant to this agreement will be settled.
APPENDIX B
The “Indexed Contract Price” for the period ending April 30, 2011 is the Contract Price. For each
Indexed Pricing Period “y”(a), the “Indexed Contract Price” shall be the greater of the Indexed Contract
Price in the preceding Indexed Pricing Period, “y-1”(b), and the following calculation:
CPI y
CPy = (1 − PE) × (CP ) + PE × CP ×
CPI BD
where:
CP = Contract Price
CPIBD = the CPI applicable to the month in which the Base Date occurs
CPIy = the CPI for the month of December immediately preceding the
commencement of Indexed Pricing Period “y”
(a)
Indexed Pricing Period “y” is any twelve month period commencing May 1 in each year and ending on
April 30 in the following year. The first Indexed Pricing Period “y” begins on May 1, 2011.
(b)
For the purposes of calculating the Indexed Contract Price for the first Indexed Pricing Period,
commencing May 1, 2011, the Indexed Contract Price in the preceding Indexed Pricing Period, “y-1”
will be the Contract Price.
APPENDIX C
Supplier represents and warrants to OPA as follows and acknowledges that OPA is relying on such
representations and warranties in entering into this Contract.
2.1 The inverter rating for the Facility is ____ kW (alternating current).
2.2 The solar array rating for the Facility is _____kW (direct current).
2.3 The Facility (check one):
is a Rooftop Facility.
is not a Rooftop Facility.
3. COVENANTS
4.2. For each of the “Designated Activities” set out in the first column of the Domestic Content Grid
for Micro-Scale (≤10kW) Solar Photovoltaic Power Projects (the “Domestic Content Grid”),
shown below, where the Designated Activity has been performed in relation to the Facility, the
Facility shall be allocated the corresponding “Qualifying Percentage” set out in the second
column of such Domestic Content Grid.
4.3. If the Facility comprises more than one of the component(s) specified in the Designated Activity,
the Designated Activity must have been performed in relation to all such components forming
part of the Facility in order for the Designated Activity to be considered to have been performed
in relation to such Facility.
4.4. A Designated Activity shall not be considered to be performed in relation to a Facility, where:
(a) some but not all aspects of the Designated Activity were performed in relation to the
Facility; or
(b) the Supplier is unable to provide evidence satisfactory to the OPA, acting reasonably, that
the Designated Activity was performed in relation to the Facility.
4.5. The “Domestic Content Level” in respect of a Facility shall be calculated, following the
Connection Date, as the sum of the Qualifying Percentages allocated to such Facility in
accordance with Section 4.1 of this Appendix C.
4.6. The Supplier must obtain a written confirmation from any equipment supplier or installer
providing equipment or services contributing to the Domestic Content Level, confirming which
components qualify as Designated Activities.
4.7. Within 10 Business Days of any request by the OPA, the Supplier shall provide written evidence
satisfactory to the OPA, acting reasonably, confirming that the Facility has met the Minimum
Required Domestic Content Level.
Domestic Content Grid for Micro-Scale (≤10kW) Solar Photovoltaic Power Projects
2. Silicon ingots and wafer, where silicon ingots have been cast in Ontario, and
wafers have been cut from the casting by a saw in Ontario. 12%
3. The crystalline silicon solar photovoltaic cells, where their active photovoltaic
layer(s) have been formed in Ontario. 10%
5. Inverter, where the assembly, final wiring and testing has been done in Ontario. 9%
7. Wiring and electrical hardware that is not part of other Designated Activities 10%
(i.e., items 1-6 and 8 of this table), sourced from an Ontario Supplier.
8. All on- and off- site labour and services. For greater certainty, this Designated 27%
Activity shall apply in respect of all Facilities.
Total 100%
APPENDIX D -1
2. COVENANTS
“In Series” means the meter for the Facility is located downstream of the meter for the associated
load customer or premises, as follows.
If In Parallel, as follows.
2.4 The legal name of the associated load customer or premises is:
___________________________.
2.5 The LDC account number of the associated load customer or premises is:
___________________________.
3. COVENANTS
3.1 The Supplier covenants that throughout the Term:
3.1.1 The Supplier will make no change and take no action that would cause the
information specified in Sections 2.1, 2.2 and 2.3 of this Appendix D-2 to be
incorrect in any respect.
3.1.2 The Supplier will notify the OPA promptly of any change in the information
contained in Sections 2.4 and 2.5 of this Appendix D-2.
3.1.3 The Supplier will ensure that it has the consent of the associated load customer,
and of any person whose premises the Facility is located, to the disclosure to the
OPA of its legal name, address and LDC account number and the use and
disclosure of such information by the OPA (including the disclosure of such
information by the OPA to LDC, the Ministry of Energy and Infrastructure or
any other Ontario government institution) for all program analysis, assessments,
reporting, administrative, operational or planning purposes or for purposes of
publicity or public awareness regarding the microFIT program or similar
programs for alternative electricity generation, electricity conservation or
electricity generating technology, use or operations.
4. ADDITIONAL TERMS AND CONDITIONS
4.1 For the purposes of Section 4.4 of the Agreement (and subject to Section 4.2 of this
Appendix D-2), electricity generated by the Facility and successfully delivered to the
associated load customer or premises will be deemed to have been successfully injected into
LDC’s distribution system.
4.2 If the associated load customer or premises is disconnected from LDC’s distribution system,
the Facility will be deemed to have been disconnected and not capable of successfully
injecting electricity into LDC’s distribution system and will not be entitled to receive
Generation Payments in respect of such period.
APPENDIX E
7064477.6