The production of biogas through the anaerobic digestion of cattle manure and its subsequent use in the generation of electricity on larger farms in Ontario is currently economically attractive. This is a result of the Ontario Feed-In Tariff (FIT) program, which provides incentivized rates for the production of electricity from biogas. Although larger farms can take advantage of the higher rates for electricity, there are substantially more smaller farms for which individually designed and engineered biogas systems would be prohibitively expensive. By employing the concept of modular biogas plants, this analysis evaluates the economics of small-scale biogas utilization systems. Dairy farms with at least 33 animals and beef farms with at least 78 animals can operate economically attractive biogas systems. This analysis shows that approximately 9000 additional Ontario cattle farms would be able to take advantage of the FIT program, which would add 120 MW(e) of renewable energy capacity to the Ontario electrical grid. (C) 2010 Elsevier Ltd. All rights reserved.