Frequently Asked Questions - Project Grants
Below are some frequently asked questions about CEPP Project Grants.
For more information about Education Grants please refer to Education Grant Resources provided on this site.
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The CEPP is a program to provide grants of up to $200,000 to community renewable energy projects in Ontario. The money can be used to fund the development and regulatory approvals phases of these projects.
The CEPP was launched on May 10, 2010. The Program is brought to you by the Community Power Fund and Deloitte and made possible by the Ontario Power Authority and the Government of Ontario.
On November 26, 2010, the Ontario Minister of Energy directed the OPA to allow corporate co-operatives to apply for CEPP FIT grants for projects over 10 MW. Maximum funding for these projects is $500,000.
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The OPA created the CEPP in response to a directive from the Minister of Energy and Infrastructure. The directive was issued on September 24, 2009 in order to meet the objectives of the Green Energy Act and to make Ontario a leader in renewable energy.
The directive instructed the OPA to create the feed-in-tariff (FIT) program and three supporting programs: the CEPP, the Aboriginal Energy Partnerships Program, and the Municipal Renewable Energy Program.
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The CEPP is managed by the Community Power Fund and Deloitte. They were chosen by the OPA through a competitive procurement process based on clearly defined evaluation criteria.
As CEPP Program Manager, the Community Power Fund provides education about the CEPP, helps people through the application process, prepares the initial screening of and recommendations regarding applications, and provides approved project monitoring.
As CEPP Program Manager, Deloitte provides independent verification of the initial screening and recommendations, financial administration and approved project oversight.
The Community Power Fund is a not-for-profit financing organization established to support community-owned renewable energy in Ontario. Its mission is to provide financial and technical support to communities working to develop, build and own renewable energy projects. Since 2007, the Community Power Fund has been providing project development grants for renewable energy projects.
Deloitte is one of Canada's leading professional services firms, providing audit, tax, financial advisory and consulting services through more than 7,700 people in 58 locations across the country.
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Renewable energy projects are eligible for CEPP funding if they:
- are greater than 10 kW and less than or equal to 10 MW (except co-op projects over 10 MW are permitted)
- use wind, solar photovoltaic, biomass, biogas, landfill gas or waterpower;
- are located in Ontario;
- are economically viable and the subject of a future FIT contract; and
- are developed by a "Community" (see below)
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Only a "Community" is eligible for CEPP funding, i.e. an applicant that would qualify as having a 100% Community Participation Level as defined in the FIT Rules. A Community means:
- one of more individuals resident in Ontario;
- a registered charity with its head office in Ontario;
- a not-for-profit organization with its head office in Ontario;
- a co-operative corporation all of whose members are resident in Ontario;
- a private corporation whose shareholders all fall into categories (a) – (d) above, and for whom commercial electricity generation is not their primary business or employment;
- a partnership or limited partnership whose partners all fall into categories (a) – (d) above, and for whom commercial electricity generation is not their primary business or employment; or
- any other organization that would be considered to have a 100% Community Participation Level under the FIT rules.
A community that partners with a non-community is eligible, but only the community can apply. See the Program Rules for details.
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Municipalities are not eligible to apply directly to the CEPP program. However, any municipality that is part of a community, as defined in the program rules, – whether through a co-op or a not-for-profit organization – is eligible to receive funding from CEPP. Please refer to the definition in the Program Rules for further details.
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Project grant applications will be accepted on a continuous basis. Applications for all eligible projects will be considered for funding in a non-competitive manner.
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The FIT (feed-in-tariff) program provides guaranteed purchases of all the power supplied by renewable energy projects for 20 years (40 years for water power) at a fixed price that is high enough to generate a reasonable rate of return.
The FIT program includes an incentive for community power in the form of a price adder of up to 1 cent extra per kWh and decreased security deposits.
The CEPP was developed to support community power projects seeking a FIT contract. Applicants are required to have a bona fide intention of seeking a FIT contract for their project.
The CEPP is intended to provide funding for activities prior to a "Notice to Proceed" from the OPA.
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Certain activities that are necessary to apply for a FIT contract are eligible for funding under CEPP prior to applying for FIT and other activities require that a FIT application be made as prerequisite to CEPP funding.
For a details, see the CEPP Project Grant Overview.
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There are two types of project grants:
- CEPP Grant 1 (G1): Design & Development
- CEPP Grant 2 (G2): Regulatory Approvals
Maximum total CEPP grant is $200,000 per project. How much of the $200,000 the CEPP applicant proposes to allocate to G1 activities versus G2 activities is up to each applicant to decide based on their project plan.
CEPP does not provide funding for pre-feasibility work. Your Grant 1 application is designed to assist you to complete core pre-feasibility work at the same time as providing you with a comprehensive application to the CEPP.
See the CEPP Project Grant Overview for details, including what kinds of costs can be funded by the CEPP for the various renewable energy technologies.
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You may apply at any stage after pre-feasibility. In order to apply for a Design and Development stage grant, proponents must submit a completed Grant 1 Application Form and requisite attachments, including:
- landowner memorandum of interest (where relevant);
- RETScreen analysis & Ontario Wind, Solar, Hydro Atlas projections or other preliminary resource assessment;
- detailed site plan;
- local distribution company connection consultation report; and
- completed CEPP budget.
Water power projects must also attach a copy of their MNR site release application submission and, if completed, an environmental assessment phase 1 project concept document.
To apply for a Regulatory Approvals grant, proponents must meet the following prerequisites:
- FIT Contract or placement into the FIT production line;
- completion of all required Grant 1 activities relevant to your project; and
- MNR Site Release Approval (water power projects only)
- CEPP Grant 2 application form and budget
See the application form and guidelines in the Apply section of our website for details.
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CEPP will not fund work that has been carried out or undertaken before submission of a completed grant application. If an activity is commenced before then, only the portion of work carried out after submission of a completed grant application will be funded.
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The maximum grant amount is $200,000 per project. Actual grant amounts depend on the size, technology and complexity of the project. See the CEPP Project Grant Overview for details. An exception exists for corporate co-operatives who may apply for up to $500,000 of project soft costs associated with the development of renewable energy projects over 10 MW.
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The CEPP will fund up to 90% of actual costs. See the CEPP Project Grant Overview for details of which costs are eligible.
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Following approval of your grant application, your CEPP Funding Agreement will clearly identify your disbursement schedule based on your project and your proposal. CEPP funds will be disbursed upfront and after achieving milestones for each set of activities. 10% of total CEPP funds awarded will be held back until final deliverables have been submitted to the satisfaction of the CEPP Program Manager.
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The CEPP will endeavor to accept or deny any grant application within 60 to 90 days following receipt of a completed application.
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Generally obtaining funding from other sources does not restrict CEPP funding. However, projects cannot obtain funding from both the CEPP and another OPA administered program, including the Aboriginal Energy Partnerships Program.
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The OPA and the CEPP Program Manager do not have a list of contractors, engineers or planners who are qualified to carry out the work for various project activities. However, CEPP staff will be able to guide you and assist your research to find a consultant who is qualified and experienced.
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CEPP can help in many ways. In addition to the many resources available through our website, we offer regular webinars. Our staff is available to answer your questions either by email or phone.
Email: info(at)communityenergyprogram.ca
Phone: 416-597-2748
Toll Free: 1-888-907-CEPP (2377)
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