In some Canadian provinces, either the government, an agency, or the local electric utility, will have programs in place that offer long-term fixed price contracts to solar generators. The most widely known of these types of programs in Canada is the microFIT Program in Ontario.

These contracts are generally for a period of 20 years (though this can differ) and have numerous requirements and restrictions built into them including:

• Eligibility on the types of entities that can apply for and hold a contract;
• The price you will be paid for the electricity generated by your solar PV system;
• The length of the term of the contract; and
• Any dispute resolution mechanism between you and the contract counterparty.

These long-term contracts can be quite complicated and customers are advised to read and fully understand them before making the decision to apply for one. It is important to note that these are legally binding agreements and if you are found to be in breach of the provisions, there can be legal ramifications including having your contract terminated.

The main benefit of having a long-term contract is that you know how much you will be paid for the electricity you generate and for what period of time you will be paid. This high level of certainty often helps in acquiring financing for your system in the event you cannot pay for it upfront all at once.