microFIT Contract Assignments (Transfers)
The Assignment Process is voluntary and requires the active participation of both the Assignor and Assignee. This requires that, without exception, both the Assignor and Assignee complete their respective steps in order for a microFIT Contract to be successfully assigned. The IESO facilitates the Assignment Process and is able to assist both parties by providing information regarding the Assignment Process.
The Assignment of a microFIT Contract may be necessary when:
- The property associated with the Facility is sold
- An individual or other legal entity is added or removed from the Contract
- The Supplier will no longer be an Eligible Participant
- The Supplier has passed away
In the event of the sale of a property, the microFIT Contract does not automatically transfer to the new owner. The IESO does not compel Contract holders to assign their existing microFIT Contract or intervene in real estate transactions. However, following certain events (e.g. the sale of a property associated with a microFIT Contract), a failure by the contract counterparty to assign to the microFIT Contract may result in the termination of the microFIT Contract, if the counterparty is no longer eligible under the microFIT Contract. The IESO strongly recommends Assignors and Assignees seek independent legal, technical and/or business advice to assist with completion of the Assignment Process.
Please note that a Supplier is only permitted to assign the entirety of its rights and obligations under the microFIT Contract and only as provided in the microFIT Contract. Accordingly, once the Assignment Process is complete and an Assignment has taken effect, the Assignor will no longer be responsible for anything under the microFIT Contract, and the Assignee will have assumed all of the Supplier’s responsibilities under the Contract. The Assignor will no longer have access to the Contract in Beacon and the IESO will no longer deal with the Assignor in respect of the Contract.
Bear in mind that the vast majority of microFIT Contracts require the Assignee to be an Eligible Participant. Where an Eligible Participant Schedule applies, the Assignee must demonstrate that they are listed as the legal owner of the property on which the microFIT Project is located. Exceptions cannot be made as the Supplier Legal Name must match exactly what appears on the Parcel Register.
The Assignor is the current contract holder seeking to transfer its contractual rights and obligations.
The Assignee is the prospective contract holder seeking to assume the contractual rights and obligations.
Licensed to organize and assist in real estate transactions, representing either the buyer or the seller.