Ontario's Ministry of Energy is undertaking a review of the
province's programs for individuals who generate their own
renewable energy. There are currently two existing programs for
small-scale renewable energy generation at the consumer level: the
net metering program and the microFIT program. In July 2015, the
Ministry of Energy established a working group to provide guidance
and recommendations on the design and implementation of a new net
metering/self-consumption (NM/SC) program. Throughout the summer
and fall of 2015, the Ministry held a number of targeted engagement sessions to obtain
feedback from industry stakeholders for use in the development a
new NM/SC program proposal. The Ministry intends to transition to
the new program by late 2017 or early 2018.
The current net metering program came into force in 2006 with
enactment of the Net Metering Regulation. The
Regulation required electricity distributors to allow eligible
generators to deliver electricity to the distributor and receive a
refund. The customer would only pay for his or her net consumption
of electricity. Eligible generators were those producing
electricity solely from renewable sources (solar, hydro, biomass or
wind) for the purpose of the generator's own consumption with a
capacity of less than 500kW.
A second – and more popular – option for consumer
generators has been the microFIT program. The microFIT program was
launched in 2009, following the passage of the Green Energy and Green Economy Act.
Under the microFIT program, consumer generators are compensated
under a tariff system where all electricity generated by the
participating consumer is sold to the electricity grid. The
consumer does not directly use any electricity generated. The
microFIT program, like the existing net metering program, is for
small-scale projects (less than 10kW) which rely solely on
The Ministry of Energy is currently consulting with stakeholders
on a new NM/SC program concept proposal to replace the existing net
metering program and microFIT program. The proposed NM/SC program
would allow consumers to use their own locally generated
electricity and export electricity to the grid where generation
exceeds consumption. One key difference from the existing net
metering program is that under the proposed NM/SC program, while
consumers would be charged retail rates for their electricity
consumption minus the amount of electricity generated, any net
excess generation would be credited at a price that reflects the
project's value to Ontario's electricity system. This is
also described as value-based compensation. Value-based
compensation may include both avoided market costs and,
potentially, also societal and environmental benefits.
The Ministry of Energy expects to post the NM/SC program
proposal to the Environmental Registry for public comment in late
2015 or early 2016.
* Co-authored by Michael McDonald, an articling student at Aird
& Berlis LLP.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).