Clean Energy Incentive Programs – Connecticut Summary

Dave Ljungquist

Associate Director, Project Development

February 18, 2010

Connecticut Clean Energy Fund

Created in 1998, launched in 2000

Mission: The CCEF promotes,

develops and invests in clean energy

sources for the benefit of

Connecticut ratepayers

Funding: Originally - surcharge on electric utility

bills ~ $28 million/year

New – American Recovery &

Reinvestment Act of 2009 ~ $20 million

over next 30 months

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CCEF Goals

1. Create a supply of clean energy (installed capacity)

2. Foster the growth, development and commercialization of

clean energy technologies

3. Stimulate use of clean energy by increasing public

awareness

Clean Energy Technologies -- Present

Solar PV

Wind

Fuel Cells

Biomass

Landfill Gas

Wave/Tidal

Hydro

Click here for more information.

Clean Energy Technologies - New

Solar ThermalLaunched in October, 2009

Ground-Source Heat Pump (Geothermal)

Launched in January, 2010

CCEF Program Summary

Fuel Cells – On-site Renewable Dist. Gen. (OSDG) $8 million ARRA, $12 million CCEF (all commercial)

Solar PV – Residential Programs Residential rebate - $1.5 million ARRA, $1.5 million CCEF

Residential lease - $1.2 million

Both will exhaust funds by early Spring

Solar PV – Commercial Programs (OSDG) For-profit grants - $4.3 million CCEF

NFP grants - $3.9 million CCEF, $1.5 million ARRA

No new applications being accepted

Backlog of commercial applications will likely exhaust funding by

6/30/2010

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CCEF Program Summary

Wind, hydro, other (OSDG) $950,000 CCEF

Likely to last through fiscal year (6/30/2010)

Solar Thermal – new program Launched in October

Residential rebate - $1.8 million ARRA

Commercial rebate - $1.8 million ARRA

Geothermal Ground Source Heat Pumps – new program Launched in January

Residential rebate - $2.25 million ARRA

Commercial rebate - $2.25 million ARRA

Incentives will be combined with CEEF program

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Up-front grant subsidizes purchase by homeowner Up to $15,000 in incentives per project Projects incented up to 10 kilowatts

Up to $1.75 per WattPTC for 1st five kW

Up to $1.25 per WattPTC for next five kW

Incented size limited to site’s peak demand

Must use listed installer

Pays approx. 30% of total system cost Benefits:

Good solar resources in CT

Easy to site

Stabilize a portion of electric bill

Reduce greenhouse gas emissions

Small Solar PV Rebate Program (Res.)

Click here for more information.

CT Solar Lease Program (residential)

Zero down payment with low fixed payments Payments less than $110.00/month with typical 5 kW system

15-year lease with option to extend for another 5 years at lower

monthly cost, or purchase system outright, or have it removed

For homeowner customers of CL&P and UI who: Install qualifying Solar PV systems

Reside in their 1 to 4 family owner-occupied homes

Have a household income of 200% or less of their area’s median income

Meet the credit and debt to income qualifications of the program

CT Solar Leasing, LLC owns the RECs and sets aside for each

system owner a portion of REC sale proceeds to use for certain

costs

www.ctsolarlease.com

Projects up to 2,000 kilowatts Incentive cap = $2.50 per Watt

Incentive limited to site’s annual usage Pays approx. 25-40% of total system cost Benefits:

Stabilize a portion of electric bill

Reduce greenhouse gas emissions

Can provide emergency power and heat

Limitations: Site must have a minimum 300 kW base load

Site must be able to use at least 50% of “waste”

heat

Must have access to natural gas service

OSDG Program – Fuel Cell (Commercial)

Yale – Peabody Museum

Middletown High School

Up to $4,000,000 in incentives Projects up to 2,000 kilowatts

Up to $3.60 per Watt (most are much lower)

Incented size limited to site’s peak demand Pays 20-50% of total system cost Benefits:

Stabilize a portion of electric bill

Reduce greenhouse gas emissions

Can provide emergency power w/ battery backup

Limitations: Generation is unpredictable and variable

Must have adequate wind resource (12 mph average)

Zoning restrictions may prevent siting

Wind resources in CT are limited (fair on coastline and

some ridgelines)

OSDG Program – Wind

CCEF Solar Thermal (New Program)

Use sunlight to heat domestic hot water

Typical System Components: Solar collectors (flat plate or evacuated tube)

Water tank

Rack, plumbing, valves, pumps, etc.

System Considerations: Demand for DHW (showers, cafeteria)

Building usage (daily, seasonal)

Size to meet 50-70% of DHW needs

CCEF Solar Thermal Program

Federal: ARRA State Energy Program (SEP) $1.8M for residential projects

$1.8M for commercial/industrial/ institutional

projects

$0.4 for administration

Incentives: Residential and for-profit CI&I -- $500 per

MMBtu of October-March system output

Not-for-profit -- $900 per MMBtu of Oct-Mar output

Typically covers 20 – 30% of cost

Maximum incentive limits: CI&I for-profit - $50,000

Not-for-profit and governmental - $82,500

Open to all Connecticut applicants

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Geothermal Heat Pumps (New Program)

Use constant temperature of earth to provide heating, cooling and dehumidification

Typical System Components: Underground pipe loops

Indoor heat pump unit

Air-handling system

System Considerations: Subsurface conditions (rocky v. sandy)

Height of water table

Building structure & insulation

Each 1,000 sf requires 1-2 tons

Est’d cost $6K-$10K per ton

CCEF Ground Source Heat Pump Program

Federal: ARRA State Energy Program (SEP) $2.25M for residential projects

$2.25M for commercial/industrial/institutional projects

$0.5 for administration

Incentives: Residential (new construction) -- $1,200 per ton of air-conditioning capacity

Residential (retrofits of existing building) -- $2,000 per ton

CI&I for-profit -- $1,200 per ton

CI&I not-for-profit -- $2,000 per ton

Covers about 20 – 30% of cost

Maximum incentive limits: Residential – 6 tons

CI&I – 100 tons (150 tons for schools)

Open to all Connecticut applicants15

The Application Process

Non-competitive (first come, first served)

Information and application forms are on-line

Process steps include: Application evaluation by staff

Calculation of the incentive amount

Approval of the incentive (staff or CCEF Board)

Notification of incentive award

Verification of successful installation

Payment of incentive!

See our website!! www.ctcleanenergy.com

What’s the Future Hold?

State Funds

• May be able to keep current funding ($28 million/year)

• Residential PV programs will probably continue

• No more commercial PV grant program; CCEF pushing for “Solar REC”

program like New Jersey’s

• Fuel cell program will continue

• Wind/hydro/biomass will continue or grow

• Feasibility study funding will likely increase

Federal Funds

• Got $20 million, to be used by April, 2012 (as discussed)

• Nothing more forecast

• Hope that future federal programs provide long-term funding

17Click here for more information.

Clean Energy Communities Program

Steps:

1. Commit to 20% by 2010 Campaign

2. Commit to EPA Community Energy Challenge

3. Households and businesses support clean energy through CTCleanEnergyOptions sign-ups and clean energy

systems

Reward: Earn clean energy systems Solar PV

Solar Thermal

Wind

Click here for more information.

Communities Solar PV Opportunities

Each 100 points earns 1 kW of solar PV (or equivalent value technology )

Minimum 4 kW installation

Bonus kW for achieving milestones

Option to purchase additional kW Limited grants available for towns to enhance earned kW

Towns may use block grants to purchase additional kW

Benefit from economies of scale

Common Ground High School - New Haven

Program Contacts

Dave Ljungquist: 860-257-2352

Rick Ross: 860-257-2887 (fuel cells)

Christin Cifaldi: 860-257-2891 (solar photovoltaic)

Bill Colonis: 860-257-2888 (solar thermal, geothermal)

Connecticut Clean Energy Fund

200 Corporate Place, 3rd Floor

Rocky Hill, CT 06067

http://www.ctcleanenergy.com

Community Programs Contacts

Bob Wall: 860-257-2354

Jillian Carbone: 860-257-2881

Connecticut Clean Energy Fund

200 Corporate Place, 3rd Floor

Rocky Hill, CT 06067

http://www.ctcleanenergy.com/communities

http://www.ctcleanenergy.com/YourCommunity/HighPerformanceSchools/tabid/104/Default.aspx

Visit us online atctcleanenergy.com