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Incentives/Policies for Renewables & Efficiency

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Operational Demonstration Program   

Last DSIRE Review: 07/11/2013
Program Overview:
State: Connecticut
Incentive Type: Industry Recruitment/Support
Eligible Efficiency Technologies: Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, CHP/Cogeneration, Heat recovery, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Doors, Siding, Roofs, Processing and Manufacturing Equipment, Comprehensive Measures/Whole Building, Room Air Conditioners, Energy storage
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels, Other Distributed Generation Technologies, Geothermal Direct-Use
Applicable Sectors: Commercial
Amount:$150,000 - $500,000
Maximum Incentive:$500,000
Terms:one-third cost-share required, unsecured loans
Funding Source:CEFIA
Program Budget:$4,000,000 (August 2010 to June 2012)
Start Date:2005
Web Site:
Authority 1:
Date Enacted:
Date Effective:
Conn. Gen. Stat. ยง 16-245n
Authority 2:
Date Enacted:
Date Effective:
S.B.1243 (Public Act 11-80)

This program is currently closed. Applications were due in February 2012. Additional funding rounds have not yet been announced. Check the program web site for the latest available information.


The Clean Energy Finance and Investment Authority (CEFIA), formerly the Connecticut Clean Energy Fund (CCEF), created the Operational Demonstration (Op Demo) Program in August 2005 to enable early-stage companies to demonstrate the effectiveness of their own near-commercial, clean-energy technologies.

The program supports proposals for demonstration projects that have a high likelihood of developing into a commercial product within a reasonable period of time -- generally, five years for fuel cells and three years for most other clean-energy technologies. Eligible resources include solar, wind, ocean thermal, wave or tidal, run-of-the-river hydro, fuel cells, hydrogen generation and storage technologies, landfill gas, low-emission advanced biomass-conversion technologies, and usable electricity from combined heat and power (CHP) systems with waste-heat recovery systems. Additionally, the CEFIA's authorizing statute includes a provision allowing the fund to support "other energy resources and emerging technologies which do not involve the combustion of coal, petroleum or petroleum products, municipal solid waste or nuclear fission."

Funding for the Operational Demonstration Program will be provided in the form of an unsecured loan, with repayment contingent upon the product achieving "commercial success." The CEFIA will also collect an additional percentage of product revenues for products that exceed a higher revenue threshold. The fund requires a front-loaded one-third cash cost-share for any funding provided. Connecticut companies may contribute 40% of the funding match through in-kind contributions, while out-of-state companies must contribute the entire funding match as a cash contribution. The maximum amount of funding for each individual award is $500,000.

Applicants must be entrepreneurs, developers or integrators of the technology they hope to commercialize, and must have a demonstrated long-term interest in commercializing the technology. The applicant must be a company in Connecticut or meet the test of having or intent to have a "significant Connecticut presence." The CEFIA accepts applications twice a year, and evaluates project proposals based on technology viability, business plan strength, short-term and long-term market opportunities, and other criteria. Applicants must demonstrate benefits to the state of Connecticut as well.


The CCEF was created in April 1998 as part of legislation deregulating the state's electric-utility industry. In 2011, the CCEF became the Clean Energy Finance Investment Authority (CEFIA).  CEFIA seeks to accelerate Connecticut’s technology economy by investing to develop clean-energy technologies, supporting the creation of clean-energy supply and educating Connecticut’s residents about the importance of clean energy to the state's energy future. The CEFIA is financed by a surcharge on ratepayers' electric bills, and is managed and administered by Connecticut Innovations. The Operational Demonstration Program provided a total of $4 million in funding for projects installed in Connecticut from inception through January 2010. The current program budget is another $4 million through June 2012.

  Keith Frame
Clean Energy Finance and Investment Authority
865 Brook Street
Rocky Hill, CT 06067-344
Phone: (860) 563-0015
Fax: (860) 563-6978
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.