The Fairfield, Connecticut-based company this morning unveiled a new solar charging station (below), which will power electric vehicles parked at its facility in Plainville, CT. Earlier in the week, it announced the launch of FlexEfficiency 50, a gas-fired power plant designed largely to complement solar, wind and other renewable-energy technologies. And (also this week) the company made known its intention to buy FMC Tech, a smart grid start-up company based in Ireland.

Whew. As if that weren’t enough, GE’s global research director, Mark M. Little, came out to say yesterday that solar power may be cheaper than electricity generated using fossil fuels and nuclear reactors. Via Bloomberg:

“If we can get solar at 15 cents a kilowatt-hour or lower, which I’m hopeful that we will do, you’re going to have a lot of people that are going to want to have solar at home,” Little said yesterday

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The 2009 average U.S. retail rate per kilowatt-hour for electricity ranges from 6.1 cents in Wyoming to 18.1 cents in Connecticut, according to Energy Information Administration data released in April.

Already in some parts of the country, solar power is approaching cost parity with the prevailing residential retail rate for electricity. It seems the innovative folks at General Electric expect this trend to continue.

To learn more about GE’s FlexEfficiency 50 technology, see this interactive info-graphic.

Related reading:

• General Electric Plans Expanded Solar Offerings
• GE Unveils Energy Efficiency Plan for American Homes

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The solar installation at Linden was possible thanks largely to $3 billion in funding from a joint program between the Department of Energy and the Treasury Department. Under the program, cash incentives were extended to companies that manufactured and/or installed renewable energy systems. Earlier this week, OPEL received $179,000 from the joint program to cover a portion of the $1.2 million Linden project.

Cash, as opposed to tax credits, according to OPEL’s Chief Financing Officer (CFO) Mike McCoy, allows his company and others to fund other solar projects faster:

“The direct payment by the U.S. Treasury Department broadens OPEL’s ability to fund new solar projects that will create new jobs and will make inroads for clean solar energy. Our investments in other solar power projects also will contribute to continued growth of the U.S. economy.”

Linden’s solar rooftop system that was completed back in March of 2009. Nicknamed “Sequoia” due to its resemblance to a tree’s root pattern, the solar energy system produces 131 kilowatt-hours (kWh) of energy each year — enough to account for 20 percent of the school’s total annual electricity consumption and shave $7,000 off the school’s annual utility bill. The solar panels are mounted into a tracking system that rotates east to west with the sun, allowing for 25 percent more sunlight to hit the panels as compared to fixed solar arrays.

OPEL solar has made other recent strides in solar development. On October 28th, OPEL secured a U.S. Patent for its High Concentration Solar Photovoltaic (PV) Module for commercial and industrial buildings and utility-scale solar energy plants. And in February of this year, OPEL received the 2010 Connecticut Green Business Award for Solar Innovation.

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As of December 31, 2009,  Connecticut’s solar lease program was suspended because the rate at which applications were being received would have caused funding for the program to run dry in a matter of months.  AFC First Financial, the interim lender for the leasing program, has now caught up on existing applications. That led to the July, 15, decision by the Connecticut Clean Energy Fund (CCEF) Board of Directors to reinstate the program for a limited time.

See announcement from CCEF, the body that administers all the state’s solar incentive programs.

Finally, in related news, a solar installation partly funded by another CCEF program — the On-Site Renewable Distributed Generation Program — was just completed today at Brewer Pilots Point Marina in Westbrook, CT.

To complete the 8,500-square-foot solar photovoltaic (PV) installation, the CCEF pitched in with a $184,968 grant. According to Trade Only, the On-Site Renewable Distributed Generation Program funds projects at Connecticut businesses in order to “reduce the load on the state’s electricity grid, prevent harmful emissions by offsetting electricity produced from fossil fuels and spur investment in small businesses.”

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Between 2005 and 2008, the CCEF disbursed over $20 million in rebates for residential solar thermal installations and $65 million in rebates for government and commercial solar thermal installations.

The Connecticut Clean Energy Fund (CCEF)  has established a new $4 million state-wide solar hot water initiative for homes and businesses expected to last until March 1, 2012. The action comes on the heels of CCEF being awarded $4 million by the American Recovery and Reinvestment Act to establish a SHWH program for the state.

Home and business owners can both benefit from the incentive, provided they install SHWH systems that will cover 50 – 80 percent of the building’s  annual domestic hot water needs. Additionally, the installed system must be either SRCC rated, or rated and certified by an independent testing body.

If all requirements to qualify for the incentive are met, the maximum amount Connecticut citizens are able to receive depends on the number of persons in the household or what type of organization is being run.

The state will award the following maximum amounts to households of:

• 1-2 people: up to $2,400
• 3-4 people: up to $3,600
• 5-6 people: up to $4,800

The maximum incentive for commercial installations is $50,000; for governmental and non-profit agencies, that cap is $82,500. As GetSolar’s Adam Sewall reported when the news first broke about the rebate, the Associate Director of Project Development at CCF says the program “should reduce annual fossil fuel consumption in Connecticut by 33,373 MMBtu, or the equivalent of 240,000 gallons of fuel oil. These systems will avoid the creation of 2,686 tons of carbon dioxide very year, for the life of the systems.”

For more information about solar water heating, check out A Glimpse Into Solar Thermal in China and Active Solar vs Passive Solar.

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HB: The program hopes to support approximately 600 residential and about 100 commercial domestic hot water applications. What’s the impact from taking those applications off the power grid?

DL: Although only about 30 percent of Connecticut’s homes use electric hot water heaters, the economics of using ST are significantly more favorable than for homes or businesses using gas or oil-fired heaters. Consequently, we would expect that more than 30 percent of the applicants will have electric hot water heat. If we assume 50 percent of the residential applicants have electric hot water heaters and 50 percent have either gas or oil, the residential market should account for an annual reduction of 1,159 MWh in electrical generation, and a reduction of 7,623 MMBtu in natural gas and oil consumption. We can assume that the commercial market will be largely oil- or natural gas-fired, so the savings from the commercial installations should be about 15,250 MMBtu (152,500 therms). This is equivalent to 109,700 gallons of fuel oil. The reduction in electrical energy consumption (from the electric hot water heating customers) will reduce fossil fuel consumption at the generating plants by another 10,500 MMBtu, so overall, the ST Program should reduce annual fossil fuel consumption in Connecticut by 33,373 MMBtu, or the equivalent of 240,000 gallons of fuel oil. These systems will avoid the creation of 2,686 tons of carbon dioxide very year, for the life of the systems.

Don’t fret if you didn’t follow the details. The main takeaways: (1) solar thermal (solar hot water) systems typically make more economic sense if they’ll be supplementing or replacing an electric water heater; (2) regardless of the previous points, solar thermal systems are among the most economical ways of heating domestic water; (3) the CCEF solar thermal program will lead to considerable fuel savings. The interview continues:

HB: Contractors marketing or developing solar thermal (ST) systems must be approved by the CCEF as a Solar Thermal Eligible Contractor to participate. How many certified contractors are there in Connecticut?

DL: CCEF has not approved any “eligible contractors” yet. A request for qualifications will be issued within a week to solicit applications, and we expect a quick response from a few companies that are currently installing ST systems in the state. We intend to have a list of “eligible contractors” available to the public when the program is officially launched. We recognize that the Connecticut labor pool is very low for the number of ST installations that we anticipate over the next 32 months. There are only 87 holders of the ST-1 license in Connecticut. However, only one ST-1 is required for each installation company, to supervise the journeymen installers (ST-2 license) and apprentices who will do most of the physical work. We expect the workforce to grow rapidly, as demand improves for solar thermal systems.

While CCEF is not yet accepting applications for the solar thermal (solar hot water) incentive program, they anticipate doing so starting August 1. Stay tuned for updates on the solar hot water installer bit. (In the meantime, feel free to browse our directory of qualified solar pros.)

Finally, in related news, new federal funding has also recently enabled CCEF to reinstate their popular solar panel rebate.

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The Connecticut Clean Energy Fund (CCEF) today announced that it has reopened its Small Solar PV Rebate Program (SSPRP).  Since November 2008, this program has been unable to accept new applications for rebates because budgeted funding for the program was fully committed.  However, with the CCEF board’s recent approval of a new, $3.1 million funding allocation
for the program, the SSPRP can now support several new rebates for residential solar installations.

“We are delighted to be able to offer this program once again to Connecticut homeowners,” said Lise
Dondy, president of CCEF. “It has been a highly popular program, enabling the purchase and
installation of more than 1,000 small solar PV systems statewide since the program was first introduced
in late 2004.”  Dondy added, “We have a long list of homeowners who wish to go green with solar and
will benefit from the new funding.  We look forward to assisting them in stabilizing their energy costs
and protecting the environment.”

Of the $3.1 million in new funds, $1.5 million will come from federal stimulus money allocated by the American Recovery and Reinvestment Act. (For more recent news on solar rebates and federal stimulus money, read here.) The remaining $1.6 million will be raised through small surcharges levied on all electricity utility bills, statewide — a funding approach CCEF has applied in the past.

As for the rebates themselves, residential customers who install a solar photoelectric (PV) system can expect to have their purchase subsidized as follows:

• $1.75/watt, for the first 5 kilowatts (kW) of installed PV capacity (PTC rating)
• $1.25/watt for the next 5 kW of PV capacity (for a maximum system size capped at 10 kW)

So, to take a rough example, a 7.1-kW residential solar panel system could qualify for a rebate of $11,375 ($1.75 x 5,000 watts + $1.25 x 2100 watts = $8,750 + $2,625 = $11,375). The CCEF estimates that this latest round of funding will provide rebates for 325 residential solar systems over the course of the next 11 months. Also, don’t forget that CCEF also sponsors a unique solar lease program.

To get started on your CT residential solar energy system, tell us about your home energy use. We’re here to provide free information and guidance for all your solar-related questions.

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Which is where solar leasing comes in. It’s an approach to solar financing with quite a mix of pros and cons, and it’s gaining some popular appeal in these times of economic hardship. Why? Well, as with any leasing program, it requires very little money down (comparatively speaking). For very little or even no money down, you can have a solar electric system installed on your roof and providing you with clean energy. This past week alone, solar installers in Arizona, Massachusetts, and Connecticut have come out with new leasing programs for their service territories.

With a solar lease, you pay a fixed monthly sum to the company that installed the system. That sum covers not only the cost of the lease, but the cost of your home’s electricity; the total figure is calculated to come out at less than what you had been previously paying for electricity alone.

Sound too good to be true? It is, and it isn’t. Say you were paying $150/month before your solar lease went into effect. Now you might be paying $120/month for lease and electric combined. Positive cash flow, predictable utility expenditure for the next decade or two, warm-fuzzies all around. But in most states, a solar PV system is eligible for a variety of tax credits, tax exemptions, and cash rebates (and in New Jersey, ownership of the Renewable Energy Credits accrued by your system). In a leasing program, you do not receive these benefits: the owner/installer of the system does. That’s why it’s a good deal for them, and why they’re able to make it a good deal for you.

You can usually opt to buy the remainder of the lease from the installer at any point. And when you sell your home, you can transfer the balance of the lease to the new owner. Solar leasing is a good option if you want to make clean energy a priority, and lock in energy prices for the future. Just keep in mind that if you can finance or outright pay for a solar electric system for your home, the benefits and ROI make it absolutely worth your while to do so. In states with good incentives, the correctly sized PV system can pay for itself in a handful of years and bring your net electric costs to a bare minimum–if not to zero.

Take a look at Adam’s concise, helpful guide to the major three financing choices for solar (Buy, Borrow, or Lease) to see how leasing stands up against the other options, and take a look at our white paper (PDF) on solar financing to dig a little deeper.

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Connecticut’s touted solar rebate program, which experts have pointed to as exemplary, may not be so perfect after all. Six months into its current two-year budget cycle, it is nearly out of cash, leaving homeowners, businesses, and nonprofit and governmental organizations that want to buy solar electric systems out of luck.

All that remains is money for residential solar leases, but there’s an income cap, and so far, they haven’t caught on.

This news comes after announced cutbacks in the per-watt rebate available to Connecticut residents and businesses who purchase solar energy systems. The Connecticut Clean Energy Fund may be a victim of its own success, but another main factor is likely also in play: the extension in October of the 30-percent federal investment tax credit (ITC). Citing the increased savings made possible by the ITC extension, Xcel Energy in early November outlined their plans to reduce solar rebates in Colorado, from $2.50 to $1.50 per watt.

For more info and background on shrinking state incentives, check out this previous post.

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Following the actions of Connecticut and Colorado, California and New Jersey have opened the issue for debate, and lawmakers from New York are also considering a reduction in that state’s juicy $3-$5/watt rebate. For individuals looking to make a solar purchase, it may be fair to ask, “What the heck is going on here?” And, “Should I be worried about my ability to finance a solar energy system?”

An answer to the first question is offered by the Connecticut Clean Energy Fund:

On October 3, 2008, President Bush signed into law the “Energy Improvement and Extension Act of 2008,” which extended for eight years the 30 percent Federal Personal Income Tax Credit on qualified solar systems, but eliminated the $2,000 incentive limit.  The federal tax incentive benefits Connecticut’s electric ratepayers by increasing the allowable federal contribution, thus decreasing the need for the CCEF’s ratepayer funded contribution for residential solar systems in Connecticut.

To maintain the same percentage of “out-of-pocket” expenses for residential solar systems as was previously offered to applicants under the CCEF’s Solar PV Rebate Program, the CCEF Board has approved reductions to the solar rebate cap levels (excluding solar lease applications) as follows:

Previous Rebate Level: $5.00 for the first 5kW; $4.30 for the next 5kW

New Rebate Level: $4.00 for the first 5kW; $2.50 for the next 5kW

These new solar rebate levels will apply to all solar systems commissioned on or after January 1, 2009. The previous rebate levels will continue to apply to those solar systems commissioned prior to January 1, 2009.

The extension in October of the Investment Tax Credit (ITC) means that you can claim a tax credit representing up to 30 percent of the costs of your solar energy system. For a 3-kW residential system costing $27,000 (at $9.00 per installed watt), the eligible credit would be worth over $8,000. There are limits on how much of the credit you can take in a given year, but it’s clear that the new federal rules are a real boon for buyers of solar energy systems. So, from the state lawmakers’ perspective, it makes sense to reduce the rebate levels available. As Barron’s blogger Eric Savitz notes,

… Xcel said that because customers will get a bigger boost from Uncle Sam, it could cut its own discount without much of a change in overall consumer system costs. The [Denver Post] story notes that Xcel now estimates that a typical rooftop solar system of 4.5 KW will cost customers $14.175 after all credits and rebates, versus $13,750 before Xcel’s credit reduction. While not a big change in overall costs, the move does have the effect of sharply increasing upfront costs, since the tax credit is not received immediately.

What does all this mean for you, a potential solar buyer? Should you be worried? As noted in the preceding quotation, a lower per-watt rebate need not sink your solar aspirations. Bolstered by tax support at the federal level, you can still reduce the financial burden associated with purchasing a solar PV system. A lower per-watt rebate does mean, however, that you’ll likely need to foot a bit more of the upfront costs. Of course this is a pain in the butt for many of us, but there are many new financing options and lenders available.

In the end, the move by states to reduce individual rebate payouts shouldn’t be viewed as a new era of doom and gloom for renewable energy. As solar technologies continue their upward march in efficiency (and downward march in price), prospects will continue to brighten. And as the market for renewable energy credits (RECs), like New Jersey’s, are strengthened, there will be increased opportunities for PV owners to derive cash value from their system’s output.

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