The microFIT Program was established to support the development of small or “micro” renewable electricity generation projects (≤10 kilowatts (kW)), such as solar panel installations. As of December 1, 2017, the IESO officially closed the application window for the microFIT Program and ceased accepting any further applications.
An assignment is required when an owner intends to assign all of its rights and obligations under a microFIT procurement contract under which the output of a micro-embedded generation facility is sold to a different legal entity or individual(s).
Considering the purchase of a property with a microFIT solar photovoltaic (PV) generating Facility (solar Facility)?
Visit the IESO's microFIT program page for a microfit overview.
Below are some initial questions you may consider asking when buying a property with a solar facility. While not exhaustive, these questions are designed to kickstart a conversation aimed at fully understanding the implications of the solar facility on the property.
- Is the solar Facility owned by the current property owner or is there a lease under which a third party was allowed to locate the Facility at the property?
- Is the solar Facility subject to a microFIT Contract? (If not, much of the information on this webpage will not be applicable, but it will still be important as purchaser to understand the status of that solar Facility.)
- Are there maintenance or service agreements associated with the solar Facility?
- What is the size of the solar system, and what is the average generation?
- If the solar Facility is a rooftop installation, what is the condition of the roof?
- Have you been provided the relevant manuals, certificates and other documentation related to the solar Facility?
Visit the IESO’s microFIT program web page for more information on how to transfer the Contract into your name microfit overview for the buyer
At a glance: when a property with a microFIT Facility on it is bought, sold or transferred, depending on the version of your Contract, it is usually necessary for the Contract for the electricity from that Facility to also be transferred. This is referred to as “an assignment” of the Contract. microFIT Contracts are not automatically assigned when a property is sold but must instead be assigned through the IESO-administered microFIT Contract assignment process. If the Supplier's version of the Contract includes an Eligible Participant Schedule (version 1.5 and higher) and the Contract is not assigned at the time the property is sold, the Supplier will be in breach of the Contract, and the Contract may be terminated.
By contrast, for versions 1.3 and 1.4 of the microFIT Contract, which do not contain an Eligible Participant Schedule, there is no requirement for the Supplier to be the same as the owner of the property. And regardless of who the Supplier is (i.e. whether it is the current property owner or a third party), for these versions of the Contract, the Supplier may not intend to assign the microFIT Contract to the purchaser upon a change of ownership of the property, or at any other time during its term. Thus, where a v. 1.3 or 1.4 Contract is in place, it is important for the potential purchaser to find out (i) who the microFIT Supplier is; and (ii) the terms under which the microFIT Facility is located on the property. If it is important to you as the purchaser or potential purchaser, you may also wish to find out whether the Supplier intends to or is willing to assign the contract to you, and if so under what terms. Once these answers are known, you can determine if any steps that are specific to that property will be required vis-à-vis the microFIT Facility.
A Contract assignment is the transfer of a microFIT Contract – and the associated rights and obligations – from a current Supplier(s) to a different individual or entity, in this case meaning you as purchaser. As with all Contract-related activity and transactions, Contract assignments are managed through a Supplier's Beacon account.
For versions 1.5 and higher of the microFIT Contract, which do include an Eligible Participant Schedule, the Contract must be assigned when:
Ownership of the property where a microFIT Facility is located changes to another individual(s) or legal entity;
An individual or other legal entity is added to or removed from title to the property on which the microFIT Facility is located; or
The current Supplier is no longer an Eligible Participant (e.g. as a result of death), requiring the Contract to be assigned to another Eligible Participant (individual or entity).
The current Supplier and prospective Supplier (i.e. you as purchaser) must follow the IESO’s automated Contract assignment process through their respective Beacon accounts. If an Eligible Participant Schedule is applicable (i.e. Contract v.1.5 or higher), you as the prospective Supplier must meet the criteria listed in that schedule before the IESO can approve the request.
In order to complete the transfer, both the Assignor (current Supplier) and you as the Assignee (prospective Supplier) need to be directly involved in the process. While third parties can assist Suppliers, only the Assignor and Assignee can make the personal representations, consents and declarations required at the time of the assignment.
Selling a property with a solar photovoltaic microFIT (PV) generating Facility
Visit the IESO’s microFIT program web page for more information on how to transfer the Contract from your name microfit overview for current owner
At a glance: when a property with a microFIT Facility on it is bought, sold or transferred, depending on the version of your Contract, it is usually necessary for the Contract for the electricity from that Facility to also be transferred. This is referred to as “an assignment” of the Contract. microFIT Contracts are not automatically assigned when a property is sold but must instead be assigned through the IESO-administered microFIT Contract assignment process. If the Supplier's version of the Contract includes an Eligible Participant Schedule (version 1.5 and higher) and the Contract is not assigned at the time the property is sold, the Supplier will be in breach of the Contract, and the Contract may be terminated.
By contrast, for versions 1.3 and 1.4 of the microFIT Contract, which do not contain an Eligible Participant Schedule, there is no requirement for the Supplier to be the same as the owner of the property. And regardless of who the Supplier is (i.e. whether it is the current property owner or a third party), for these versions of the Contract, the Supplier may not intend to assign the microFIT Contract to the purchaser upon a change of ownership of the property, or at any other time during its term. Thus, where a v. 1.3 or 1.4 Contract is in place, it is important for the potential purchaser to find out (i) who the microFIT Supplier is; and (ii) the terms under which the microFIT Facility is located on the property. If it is important to you as the purchaser or potential purchaser, you may also wish to find out whether the Supplier intends to or is willing to assign the contract to you, and if so under what terms. Once these answers are known, you can determine if any steps that are specific to that property will be required vis-à-vis the microFIT Facility
A Contract assignment is the transfer of a microFIT Contract – and the associated rights and obligations – from a current Supplier(s) to a different individual or entity, in this case meaning you as purchaser. As with all Contract-related activity and transactions, Contract assignments are managed through a Supplier's Beacon account.
A Contract assignment is necessary when the current Supplier intends to assign all of its rights and obligations under the Contract to a different individual or legal entity (new Supplier). Pursuant to Section 12 of a version 1 Contract or Section 10 of a version 2/3/4 Contract, the current Supplier (Assignor) may submit a request to the IESO* to assign the Contract to a new Supplier (Assignee).
The Supplier may submit a Contract assignment request to the IESO* in connection with the following:
Sale of property upon which the Facility is located to another individual or legal entity (under no circumstances can a Facility be relocated to a new property)
Adding or removing an individual or other legal entity from the Contract
Where an event will cause the Supplier to no longer be an Eligible Participant and the Contract can be assigned to an Eligible Participant
Important: Where the Supplier fails to submit a Contract assignment request for any of the above changes, the Supplier may be in breach of the Contract.
Upon IESO’s consent to the Contract assignment request, the new Supplier (Assignee) will take over the Contract for the remainder of the Contract term. For example, if a 20-year Contract is assigned after 15 years to a new individual or legal entity, the new Supplier will be entitled to receive Generation Payments for the remaining five years of the Contract term.
In order to submit a Contract assignment request to the IESO, the current Supplier (Assignor) and prospective new Supplier (Assignee) must follow the automated Contract assignment process administered through their respective Beacon account.
Program Documents
Visit the IESO’s microFIT program web page for more information. microfit program documents.
How to Contact the IESO
General questions about the microFIT Program 1-833-560-6348 (MFIT) or microFIT.Contract@ieso.ca.