What is a Feed in Tariff?


A feed in tariff or (FIT) is a simple way of contracting renewable energy generation.[i]  It has standardized programs, rules, prices and contracts. [ii] The tariffs are in reference to the specific prices paid to renewable energy suppliers for the electricity created by the generating facility.[iii] The structure of the pricing changes based on size and scope of the project size as well as the type of technology, allowing for a reasonable return on investment.[iv] The FIT program in Ontario is the first of its kind in North America, while incorporating lessons from many different places throughout Europe it has been tailored specifically to meet the needs of Ontario.[v]

The FIT launched in 2009 as a way to encourage the development of renewable energy technology. [vi] The program is aiding Ontario in meeting their goals for improving air quality and reducing their reliance on fossil fuels.[vii]

The ‘Ontario Feed-in Tariff (FIT) Program’ creates an opportunity for home owners, businesses, communities and developers to create renewable energy and sell it to the province for a fixed price.[viii] The program itself can be applied to many different types of renewable energy such as: wind, waterpower, biomass/ biogas, solar photovoltaic and land fill gas.[ix] There are two different initiatives under the FIT program, the regular FIT program and the mcroFIT program. The FIT program is for projects larger than 10 kilowatts usually up to 500 kilowatts and is open to everyone.[x] The microFIT program is reserved for projects that produce 10 kilowatts or less.[xi] It is typically used for individual homes and farms or smaller buildings.

[i] “Independent Electricity System Operator.” (2015)
[ii] Ibid.
[iii] Ibid.
[iv] Ibid.
[v] Ibid.
[vi] “Ontario Ministry of Energy.” (2015)
[vii] Ibid.
[viii] Ibid.
[ix] Ibid.
[x] Ibid.
[xi] Ibid.

Works Cited:

“Independent Electricity System Operator.” (2015, September 29). FIT 4.0.1 Frequently Asked Questions. Retrieved from http://fit.powerauthority.on.ca/sites/default/files/version4/FIT-4-FAQs-V4.pdf

“Ontario Ministry of Energy.” (2015, August 26). FIT and microFIT Program. Retrieved from http://www.energy.gov.on.ca/en/fit-and-microfit-program/


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