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ARTICLE · 20 JANUARY 2014

The Never-Ending Solar Lease

Gowling WLG
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Since the launch of Ontario’s Feed-in Tariff program in 2009, most property managers in charge of commercial-scale properties located within Ontario have been approached by solar power project developers seeking to acquire rooftop access rights for the development of solar projects under the FIT program.

CanadaEnergy and Natural Resources
Thomas Timmins
Thomas Timmins
Marissa Kirsh
Marissa Kirsh
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Since the launch of Ontario's Feed-in Tariff (FIT) program in 2009, most property managers in charge of commercial-scale properties located within Ontario have been approached by solar power project developers seeking to acquire rooftop access rights for the development of solar projects under the FIT program.

The typical approach involves a solar company paying rent to the rooftop owner for the exclusive use of the latter's roof for the eventual installation of solar panels if/when a FIT contract is awarded by the Ontario Power Authority (OPA).  Occasionally, substantial sales pressure has been applied in order to encourage rapid action – this is justified by a need to 'lock-up' preferential FIT pricing and/or to get to the head of the queue in respect of electricity grid connection.  Signing bonuses and prepaid rent occasionally form part of the incentive package.   

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