Connecticut Solar Customers Act Quickly

The Ct Clean Energy Fund has recently reduced the model for their funding. Connecticut consumers looking for incentives to buy solar should not hesitate in their search for design and installation professionals. The time is now. The 100 new customers approved in July for the lease program are going fast. The trend is likely moving in the financing direction in any event in Connecticut.

The Connecticut Clean Energy Fund’s (CCEF) new two-year 127 page budget proposal is out and is posted on the CCEF (ctcleanenergy.com) website under “Announcements.”

CCEF manages the state’s incentives and investments directed at the clean energy sector. The state’s solar industry is almost entirely dependent on the electric ratepayers’ surcharge and CCEF’s management of those funds. Federal dollars (ARRA) available under the Obama administration have helped fill gaps in CCEF program offerings

The new $77.5M spending plan covers the period starting July, 1, 2010 and ending June 30, 2012 and represents a $33M reduction from the level of CCEF spending over the previous two-years. Here is a recent assessment of the proposed spending on solar-related incentive activities by CT Solar and detailed on pages 35-51 and page 75 of the report.

Paul Schmitz, Sundoor Solar – Connecticut.

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Gone is the open application process familiar to Solar Connecticut members whereby CCEF accepted commercial applications on a rolling basis until the funds were exhausted. Instead, CCEF proposes that solar installers compete against each other (and against other technologies) for $17.6M in ratepayer-funded incentives via a RFP process. CCEF splits the $17.6M three ways:

1. P.38 – The On-Site Renewable Distributed Generation Program (OSDG) returns. CCEF proposes $8.6M in spending split between PV, solar thermal and as many as six other technologies. CCEF projects a minimum of 10 projects producing 3.5 MW. Projects will be selected through a RFP process based on CCEF’s criteria including terms of cost, technical feasibility, fit of technology to energy need, unique benefits, and ratepayer benefits.

2. P.43 – $5M is set aside for 0.8 MW’s worth for RFP-determined installations for businesses that agree to join the EPA Climate Leaders Program and commit to reducing their impact on the global environment by completing a corporate-wide inventory of their greenhouse gas (GHG) emissions, setting long-term reduction goals, and annually reporting their progress to EPA (See http://www.epa.gov/stateply/partners/index.html). This program is not exclusive to solar.

3. P.44 – There is an Affordable Housing component, also an RFP situation, and offering $4M. Project selection is the same. Because these dollars will go exclusively to housing projects a good chunk of these funds are likely to go to solar.

P.45 – The previous programs mentioned are funded by the ratepayer surcharge. ARRA (federal) funding will again be used to incent Commercial Solar Thermal applications. $500 per MMBtu goes to for-profit projects. Not-for-profits get $800 per MMBtu. CCEF budgets $2.02M for what it feels will result in 88 projects totaling 1.45MW or just over 30,000 sq.ft. of collectors.

P.47 – ARRA and RGGI (http://www.rggi.org/home) dollars will incent 5.2MW of clean energy projects (solar and all others) on public buildings. CCEF sets aside $13.5M which also falls under CCEF’s new RFP conditions. These projects could be solar. Could also be fuel cells or something else. The CCEF proposal sets no split of the funds.

RESIDENTIAL

P.48 – As many as 1,000 residential systems could be completed with the $14M CCEF places in solar PV lines of the proposed budget. No RFP process here. A third of those projects would be leases. Incentives would be no greater than two thousand eight hundred ninety dollars ($2,890) per kWAC.

P.50 — CCEF quadruples the level of funding ($2M) for residential solar thermal to achieve a full 1MW of solar thermal over the next two years. CCEF expects the funding (all ARRA) will cover 430 ST projects. Rebate is same as for commercial projects.

P.53 – Revolving Loan Fund line ($3.5M) could benefit certain solar projects.

P.72 – CCEF reduces by a third, but still maintains its commitment to the Connecticut Clean Energy Communities program with a $3.7M earmark, enough for 400kw worth of clean energy installations on public buildings in municipalities that qualify. Most of these projects have been solar installations.

P.79 – The solar opportunity in the High-Performance Schools Program lies in the goal of installing clean energy systems in a minimum of fifty percent (50%) of new schools built or major renovation projects supported by the state.

It is expected that CCEF will end the year with a surplus, that is, funds designated for solar and other programs that were not successfully applied for. Once that surplus number is determined CCEF will apply any surplus dollars to existing line items.

In the event Gov. Rell or her successor signs legislation that initiates a commercial SREC market at any point between now and the end of the CCEF two-year budget period it is likely that CCEF would review its budget and reallocate funds.

CCEF budget proposal dollars not specifically designated for solar installations include:

P.53 CCEF Strategic Investment Fund …………………………………….. $1.6M
P.54, P.59, P.61 Funding for Early Stage Companies ……………….. $5.85M
P.79 High Performance Schools Project …………………………………… $2.7M