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In Ontario, green energy creation is now encouraged through a feed-in-tariff (FIT) program that allows generators to sell back to the province.

To spur generation of renewable energy, Ontario is planning to cover the cost for certain projects, offering a "reasonable" rate of return via long-term contracts with fixed electricity prices.

As discussed in an earlier edition of Construction Canada Online, the Ontario Green Energy Act—now signed into law—is intended to lessen environmental impacts and boost Ontario's economy.

During a press conference in Toronto last month, Premier Dalton McGuinty announced the feed-in tariff (FIT) program—described as being unique in North America—that would allow producers of solar, wind, water, and other 'green' energy to sell power back to the provincial grid.

"The tariff will make it easier to get financing and access to the energy grid," McGuinty said. "These rules will give investors the confidence they need to help build tomorrow's green economy."

Such investors are not limited to corporations, but can include communities, schools, healthcare centres, and even individual homeowners. Potential energy-sellers will be offered 20-year contracts (the term is doubled for hydro projects), with guaranteed prices set for specific project types and sizes. The act also sets regulations regarding the location of solar and wind farms in certain locations to preserve residential and agricultural land.

The Ontario Power Authority began taking applications this month; contracts could be signed as early as December. For more information, visit www.fit.powerauthority.on.ca.