Clean Energy Fund Incentives Guilford Energy Forum

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Clean Energy Fund IncentivesGuilford Energy
Forum

• Dave Ljungquist
• Associate Director, Project Development
• October 22, 2009

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Connecticut Clean Energy Fund

• Created in 1998, launched in 2000
• Funded by a surcharge on electric utility bills
• Mission The CCEF promotes, develops and invests
  in clean energy sources for the benefit of
  Connecticut ratepayers
• Vision Connecticut will lead the nation in
  achieving a sustainable balance of energy
  production, economic growth and environmental
  impact

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Clean Energy Technologies - Present
Solar PV
Wind Fuel Cells
Biomass
Landfill Gas
Wave/Tidal Hydro
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Clean Energy Technologies - New
Ground-Source Heat Pump
(Geothermal)
Solar Thermal
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Funding Sources

• Historical funding from surcharge on UI and CLP
  electric bill - 30M/year
• Some additional funding from sale of Renewable
  Energy Credits (RECs) and foundation grants
• New Regional Greenhouse Gas Initiative (RGGI)
• 3M/first 3 quarterly auctions
• May be used for Class I Renewables only
• New American Recovery and Reinvestment Act
  (ARRA)
• 20M
• May be used statewide (i.e., not just UI and
  CLP)
• Funding directed by Governors office to specific
  technologies

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ARRA Breakdown for CCEF

• 8M Fuel Cells - existing program
• 3M Solar PV to be divided among existing
  commercial residential programs
• Backlog of commercial applications will likely
  exhaust funding
• 4M Solar Thermal new program to be developed
  for commercial residential customers
• Launched in October
• 5M Geothermal Ground Source Heat Pumps new
  program to be developed for commercial
  residential customers
• Likely to be launched in December
• Incentives may be combined with CEEF program

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CCEF Fuel Cell Programs Commercial,
Industrial Institutional
Solar Photovoltaic Panels
16 kw
UTC PC25 200 kW
Solar Hot Water Collectors
FuelCell Energy DFC 300 kW
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CCEF Fuel Cell Programs

• On-Site Renewable DG Program1
• 14M (all commercial, industrial institutional
  CII)
• Federal ARRA State Energy Program (SEP)2
• 8M (all CII)
• Program Rules and Incentives same in both cases
• Up to 2,500/kW
• Capped at 4,000,000
• 1Open only to CLP and United Illuminating
  customers
• 2Open to all Connecticut applicants

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CCEF Solar Energy Programs

• Programs for Solar Technologies
• Solar Rebate Program (Residential PV only) 1
• CT Solar Lease Program (Residential PV only) 1
• Federal ARRA State Energy Program (SEP)2
• 3M Solar PV (5050 residential/commercial)
• 4M Solar thermal (5050 residential/commercial)
• 1Open only to CLP and United Illuminating
  customers
• 2Open to all Connecticut applicants

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Why is Solar Energy Important?

• Oil, coal and uranium reserves 10.5 Million
  Terawatt-Hours
• 100 to 150 years of energy remaining at present
  rates
• 15 to 20 years if world matches US consumption
• The sun transmits 330 Million Terawatt-Hours of
  energy per year
• Sunpower (average) 120,000 TW
• Earths needs 13 TW
• Todays solar cells produce about 10 times the
  energy needed to make them

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Solar PV Facts

• 1839 French Scientist Henri Becquerel
• 1958 NASA Commercial Application
• A High Growth Industry (30 per annum)
• USA /CNN / Gallup Poll 91 support clean energy
• Works in Connecticut -- Bridgeport has more sunny
  days than Miami (!) and gets 84 of its
  insolation

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Solar Energy StatesResource CT is sunnier than
you may think!
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CCEF Solar PV Programs
Residential
Solar Hot Water Collectors
16 kw
Solar Photovoltaic Panels
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CCEF Solar Photovoltaic Programs

• Solar Rebate Program (Residential PV only)1
• 1.6M (homeowner direct purchase)
• Federal ARRA State Energy Program (SEP)2
• 1.5M (homeowner direct purchase)
• Incentives same in both cases
• 1.75 for the first 5kW
• 1.25 for the next 5kW
• Capped at 15,000
• The rebates, along with federal tax credits,
  reduce system cost by approximately 40 - 45
• 1Open only to CLP and United Illuminating
  customers
• 2Open to all Connecticut applicants

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Residential Solar PV Rebate

• Direct purchase by homeowner
• Up to 15,000.00 rebate per household
• Up to and including 10 kilowatts on one- to
  four-family homes
• Rebate levels
• Systems up to and including 5 kilowatts
• Performance-based rebate up to 1.75 per watt
  (PTC) for system and installation costs to a
  maximum of 8,750.00.
• Systems greater than 5 kilowatts and up to and
  including 10 kilowatts
• Performance-based rebate up to 1.75 per Watt
  (PTC) for system and installation costs on the
  first 5 kW PLUS a performance-based rebate up to
  1.25 per watt for the next 5 kW.
• The rebates, along with federal tax credits,
  reduce system cost by approximately 40 - 45

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CT Solar Lease Program - Highlights

• First state sponsored residential solar leasing
  program in the United States.
• CCEF provides solar rebates as well as lease
  capital.
• No down payment is required.
• Low monthly payment, fixed for the entire 15 year
  period.
• Monthly payment for a 45,000 system averages
  120/month.
• Major eligibility guidelines include
• (1) the homeowners income may not exceed 200
  of the median family income in their area and
• (2) the homeowner is a customer of CLP or UI.
  The homeowner must also have good credit.

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CT Solar Lease Program (continued)

• 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 CLP 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
  areas 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
• Check it out at www.ctsolarlease.com

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CCEF Solar Thermal Program
Residential and CII
Solar Hot Water Collectors
16 kw
Solar Photovoltaic Panels
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Solar Thermal

• 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 50-80 of DHW needs

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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 CII -- 500 per MMBtu
  of October-March system output
• Not-for-profit -- 900 per MMBtu of October-March
  system output
• Maximum incentive limits
• 1-2 person household - 2,400(capped)
• 3-4 person household - 3,600(capped)
• 5-6 person household - 4,800(capped)
• CII for-profit - 50,000
• Not-for-profit and governmental - 82,500
• Open to all Connecticut applicants

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Project Eligibility

• Installation site must be in Connecticut
• Domestic hot water only (Federal rule no pools,
  CCEF rule no space heating )
• Minimum 50 Solar Fraction based on estimated
  usage
• Target 70 Solar Fraction
• Maximum 80 Solar Fraction (unless specifically
  designed for no excess heat production in summer)
• Roof must have 15 years of life left, if
  roof-mounted
• All designs over 30 MMBtu/year must be stamped by
  P.E. (unless SRCC OG300 design)

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CCEF Ground Source Heat Pump Program
Residential and CII
Commercial System
Solar Hot Water Collectors
Residential Dual-Unit System
16 kw
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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
• CII for-profit -- 1,200 per ton
• CII not-for-profit -- 2,000 per ton
• Maximum incentive limits
• Residential 6 tons
• CII 100 tons
• Open to all Connecticut applicants

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CCEF OSDG Program Wind

• 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 sites 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)

NorthWind 100 kW Wind Turbine
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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

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Visit us online www.ctcleanenergy.com 200
Corporate Place, 3rd Floor Rocky Hill, CT
06067 [phone] Dave Ljungquist Rick
Ross Angela Perondi-Pitel Bill Colonis Christin
Cifaldi