Aboriginal Renewable Energy Fund Frequently Asked Questions

NEW  How is the AREF program related to the OPA’s Large Renewable Procurement Program?

The Large Renewable Procurement (LRP) is a competitive process for procuring large renewable energy projects (generally greater than 500 kW).

The first stage of the LRP is the Request for Qualifications (RFQ) stage wherein the OPA will seek to qualify applicants based on their ability to meet a set of mandatory requirements focused on past development experience and financial capability. This has been completed through the LRP I RFQ.

The LRP I RFQ has now concluded and the OPA has determined the final list of Qualified Applicants. These entities will be eligible to submit proposals under the Request for Proposals (RFP) stage. At the conclusion of the LRP I RFP, the OPA may award contracts for successful projects up to specified procurement targets for each renewable fuel.

The AREF Program provides funding support for Aboriginal communities with funding for the costs associated with the required due diligence for considering partnership opportunities in the LRP Program.

NEW  I submitted my AREF Application before the new AREF Rules were posted but my application has not been reviewed yet. Am I subject to the new Program Rules?

No, Applications submitted prior to December 19, 2025 will remain subject to version 2.2 of the AREF Program Rules. Applications submitted on or after December 19, 2025 will be subject to the Program Rules. 

What kinds of costs will be eligible for funding under the Aboriginal Renewable Energy Fund (AREF)?
Under the Organizational Development and Partnership Stream (the Planning Streams) funding may be provided for independent legal costs associated with developing and instituting the organizational structure that will own the Project or to conduct due diligence to assess whether and how the Applicant should enter into a business relationship with a Project Partner in relation to a Project.

For more details, please see the AREF Program Rules.

In the Development and Approvals stream funding may be provided for costs associated with developing a Project and obtaining the requisite regulatory approvals for a Project.Applicants are limited to a maximum of five successful Development and Approvals Stream Applications.

Please see the Program Rules for more information on eligible costs.

How much can my community receive from AREF? 

Funding is divided into three streams, Partnership, Organizational Development and Development and Approvals for the following amounts:

For FIT Projects:Under the Organizational Development and Partnership stream (the Planning Streams) funding is available depending on the number of Projects and FIT Applications the Applicant is pursuing:

• Where an Applicant is pursuing one Project and one FIT Application, the OPA may fund up to a maximum of the lesser of: (a) 80% of the Eligible External Expenses; and (b) $20,000.00.
• Where an Applicant is pursuing two Projects and two FIT Applications, the OPA may fund up to a maximum of the lesser of: (a) 80% of the Eligible External Expenses; and (b) $30,000.00.
• Where an Applicant is pursuing three or more Projects and three or more FIT Applications, the OPA may fund up to a maximum of the lesser of: (a) 80% of the Eligible External Expenses; and (b) $40,000.00.

For LPR Projects:Under the Partnership Stream funding is available up to a maximum of the lesser of (a) 80% of the Eligible External Expenses; and (b) $40,000.00 where the Applicant for one Application relating to one or more LRP Projects.  

Under the Development and Approvals stream funding is available for 50 percent of actual costs up to $100,000 per project for projects hold a FIT Contract and are between 10 kilowatts up to and including 500 kilowatts.  Applicants are limited to five successful Development and Approvals stream applications for Projects that are 10 kilowatts up to and including 500 kilowatts. Projects that hold a FIT Contract and are greater than 500 kilowatts may be eligible for up to 50 percent of actual costs up to $500,000.00.

Please see the Program Rules for more information.

What is eligible for funding under the Organizational Development and Partnership streams?
Under the Organizational Development and Partnership stream, assistance may be provided for costs associated with independent legal costs associated with developing the corporate structure for the project and assessing or establishing a partnership including independent, third-party professional advice in the assessment and review of legal agreements, and business and financial valuations. Funding for LRP activities are only eligible under the Partnership Stream.

Please see the AREF Rules for more details about eligible funding expenses.

What is eligible for funding under the Development and Approvals stream?
In the Development and Approvals Stream assistance may be provided for the costs associated with developing a renewable generating facility. These activities can include resource assessments, organizational development, engineering and design studies, and required regulatory approvals, among others.

How do I know if my community is eligible for the AREF?
Funding under AREF is available to First Nations and Métis communities in the province of Ontario that fall into one of the following three categories:

a)     a First Nation in Ontario that is a “band” as defined in the Indian Act, RSC 1985, c. 1-5;

b)     the Metis Nation of Ontario or any of its active Chartered Community Councils; or

c)     a Person, other than a natural person, that is determined by the Government of Ontario for the purposes of the FIT Program to represent the collective interests of a community that is comprised of Métis or other Aboriginal individuals in Ontario.

Please see the Program Rules for more information about eligibility.

If we received funding for our project under AREF 1.0, can we receive funding under AREF 2.33?
Applicants who received funding under AREF 1.0 may be eligible to receive funding under AREF 2.3 for the same project. To qualify, all eligibility criteria for AREF 2.3 must be met and each application must be made subject to the AREF 2.3 rules and requirements.

What types of projects are eligible for funding?
First Nation and Métis communities that are developing or partnering in a renewable energy project greater than 10 kilowatts up to and including 500 kilowatts in size may be eligible to apply for funding under the Planning Streams and Development and Approvals Stream. Projects larger than 500 kW that are pursuing an LRP I Contract are also eligible for funding under the Partnership Stream only. Eligible renewable energy technologies include solar photovoltaic, waterpower, bioenergy and wind power projects. The fund supports projects that have or intend to have a FIT contract or Green Energy Investment Agreement (GEIA). Please see the Program Rules for more details.

How do we apply to the AREF?
Applications can be downloaded from the AREF Program Documents page. Applications may be completed electronically and emailed to the OPA at [email protected]. They may also be completed by hand and mailed to the OPA at 120 Adelaide Street West, Suite 1600, Toronto, Ontario M5H 1T1 or faxed to 416-967-1947. Hard copies of the application forms can also be mailed to the applicant upon request by contacting AREF staff at 416-969-6317 or 1-888-471-2377 (toll-free).

Can we apply to the AREF for more than one project?
Yes, funding for the Planning Streams is on a per community basis where funding available is based on the number of FIT or LRP Projects being pursued.  Applicants are limited to one Application for the Planning Streams but are able to submit up to five Applications under the Development and Approvals Stream (where each Application is in relation to ONE FIT Contract).

Can we apply for more than one project of the same renewable technology?
Yes, your community may apply for funding for more than one project of the same renewable technology, if it can be demonstrated that the projects are on distinct sites, each have their own connection points and each will be subject to separate FIT contract or LRP contracts.

Is the application process competitive?
Applications to the Development and Approvals stream are accepted continuously, in a non-competitive manner. The AREF program has a maximum of $500,000 per program year to allocate to Organizational Development and Partnership stream funding. This funding will be allocated on a first-come, first-served basis based on the timestamp that is provided at the time a complete application is received by the OPA.

Does the percentage of Aboriginal participation in the project influence the amount of funding that my community will be eligible for?
AREF funding will only be provided for costs that are incurred by the Aboriginal community (with at least 15% Community participation for FIT Projects and with at least 10% Community participation for LRP Projects) directly. Funding will not be provided to cover costs for activities that are paid for by a partner or other source.

If we applied for AREF funding, can we also apply for other funds and grants?
Yes, projects are very costly and we recognize that AREF funding will not cover all of the costs associated with project development. We encourage communities to look for other sources of funding to cover additional costs. However, the AREF will not fund activities that have already been fully covered by other funding sources. Please see a list of alternative sources of funding for which your community may be eligible.

Is my community eligible for funding if we will be pursuing a power purchase agreement other than a FIT Contract or a Green Energy Investment Agreement (GEIA)?
The AREF is a support program for the FIT Program, LRP and GEIA. To be eligible for AREF funding, the community must have the intention of applying to the FIT Program or entering into a GEIA partnership. OPA has made funding available in the interim to Aboriginal communities through the AREF Program for the due diligence work required to assess and develop opportunities for participation in the LRP Program. If your community intends to enter into a power purchase agreement other than FIT, LRP or GEIA, you are not eligible for the program.

Are microFIT projects (10 kilowatts or less) eligible for the AREF?
No, the AREF only provides support to projects that are greater than 10 kilowatts in size and up to 500 kilowatts and that meet other eligibility criteria as outlined in the Program Rules.

Does the AREF cover costs associated with transmission and connections (i.e., studies and connection assessments)?
Connection Impact Assessments (CIAs) or other studies, assessments or costs associated with connecting your project to the electricity grid are not eligible for funding. The AREF is also not intended for costs associated with developing, upgrading or expanding transmission and/or distribution lines.

Who can I contact for more information about the AREF?
For inquiries about the AREF, please contact AREF Staff at 416-969-6317 or 1-888-471-2377 (toll-free) or email us at [email protected]. 

Other Related Questions:

What is a Renewable Energy Approval?
A Renewable Energy Approval (REA) is a streamlined provincial approval process for renewable energy projects established through the Green Energy and Green Economy Act, 2009. For more information, please visit http://www.ene.gov.on.ca/en/business/green-energy/.

How does the Aboriginal Loan Guarantee Program work?
Through the Aboriginal Loan Guarantee Program, Ontario will guarantee loans that are provided to eligible Aboriginal communities by financial institutions. Loan guarantees will only be granted to commercially viable projects following an extensive due diligence process.  The government will guarantee up to 75 percent of equity, to a maximum of $50 million per project. Projects will be required to have:

• agreements in place to pre-purchase energy in the case of a generation project or regulated rates in the case of a transmission project
• experienced proponents and project partners with track records in construction and operation
• commercial financing arrangements in place.

For more information, visit: http://www.ofina.on.ca/algp.

Where can I find information about other funding sources available for Aboriginal community projects in Ontario?
Please visit the Alternative Sources of Funding page for more information on funding sources.

How is the AREF program related to the OPA’s FIT Program/Large Renewable Procurement?
The OPA’s FIT Program is a standard offer program for renewable energy development. See more information on the FIT Program. The OPA’s Large Renewable Procurement (LRP Program) is a competitive process for procuring large renewable energy projects (generally greater than 500 kW). See more information on the LRP Program.

The AREF is a support program designed to facilitate participation by Aboriginal communities in the renewable energy sector by providing funding for some of the soft costs associated with developing a project.  The AREF will support First Nations and Métis communities in developing projects that have or intend to have a FIT contract or Green Energy Investment Agreement (GEIA) or LRP contract.

Does the OPA have a list of contractors, engineers, planners, etc., who are qualified to carry out the required research and studies?
The OPA does not have a list of contractors, engineers or planners who are qualified to carry out the work for various project activities. The OPA recommends that you do some research and speak to other communities that are developing renewable energy projects to find a consultant who is qualified and experienced.