Clean Energy Fund Incentives

Guilford Energy Forum

Dave Ljungquist

Associate Director, Project Development

October 22, 2009

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

Clean Energy Technologies - New

Solar Thermal

Ground-Source Heat Pump (Geothermal)

Funding Sources

Historical funding from surcharge on UI and CL&P 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 CL&P)

Funding directed by Governor’s 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

16 kw

Solar Hot Water Collectors

Solar Photovoltaic Panels

UTC PC25 200 kW

FuelCell Energy DFC 300 kW

CCEF Fuel Cell Programs

On-Site Renewable DG Program1

$14M (all commercial, industrial & institutional – CI&I)

Federal: ARRA State Energy Program (SEP)2

$8M (all CI&I)

Program Rules and Incentives same in both cases: Up to $2,500/kW

Capped at $4,000,000

1Open only to CL&P and United Illuminating customers2Open 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 (50:50 residential/commercial)

$4M Solar thermal (50:50 residential/commercial)

1Open only to CL&P and United Illuminating customers2Open 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

• Earth’s needs: 13 TW

• Today’s solar cells produce about 10 times the energy needed to make them

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

Solar Energy StatesResource – CT is sunnier than you may think!

CCEF Solar PV Programs – Residential

16 kw

Solar Hot Water Collectors Solar Photovoltaic Panels

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 CL&P and United Illuminating customers2Open 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 CL&P or UI. The homeowner

must also have good credit.

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 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

Check it out at: www.ctsolarlease.com

CCEF Solar Thermal Program – Residential and CI&I

16 kw

Solar Hot Water Collectors Solar Photovoltaic Panels

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

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 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)

CI&I 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)

CCEF Ground Source Heat Pump Program – Residential and CI&I

16 kw

Solar Hot Water Collectors Residential Dual-Unit System

Commercial System

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

Maximum incentive limits: Residential – 6 tons

CI&I – 100 tons

Open to all Connecticut applicants

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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)

CCEF OSDG Program – Wind

NorthWind 100 kW Wind Turbine

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

Visit us onlinewww.ctcleanenergy.com

200 Corporate Place, 3rd FloorRocky Hill, CT 06067

(860) 563-0015

Dave LjungquistRick Ross

Angela Perondi-PitelBill Colonis

Christin Cifaldi