Connecticut
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 09/01/2009
| Incentive Type: |
State Grant Program |
| State: |
Connecticut |
| Eligible Renewable/Other Technologies: |
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Fuel Cells,
Small Hydroelectric,
Tidal Energy,
Wave Energy,
Ocean Thermal
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| Applicable Sectors: |
Commercial,
Industrial,
Nonprofit,
Schools,
Local Government,
State Government,
Institutional
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| Amount: | Varies by technology |
| Maximum Amount: | $800,000 per project for PV projects (for non-profits); $4 million per project for other eligible projects. (Plus, for certain projects southwestern CT approved by 6/30/08, a production incentive of 2¢/kWh.) |
| Equipment Requirements: | Minimum system capacity of 10 kW; systems must be commercially available, and must have warrantees, spare parts and service commensurate with commercial status. See funding solicitation for details. |
| Installation Requirements: | Installations must be configured so that the host can participate in the ISO-NE demand response program. Project owners are required to operate the project for the “financeable life” of the equipment, which is assumed to be 15 years. Either "significant energy efficiency measures" must have been implemented within the three years prior to application, or an energy audit is required. |
| Funding Source: | Connecticut Clean Energy Fund (CCEF) |
| Program Budget: | $42.5 million |
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Web Site: |
http://www.ctcleanenergy.com/default.aspx?tabid=95
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| Date Effective: | 12/1/2005 |
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Summary:
Note: In December 2008, the CCEF announced that it will not accept any new pre-applications or applications for photovoltaic (PV) systems under the On-Site Renewable DG Program after January 15, 2009. All pre-applications and applications received under the OSDG program are date-stamped and will be evaluated in the order received. Funding will be awarded until the program budget allocations are fully committed. The CCEF will announce future developments and program changes on its web site.
Connecticut's On-Site Renewable Distributed Generation (DG) Program provides grants to support the installation of systems that generate electricity at commercial, industrial and institutional buildings. Systems utilizing solar photovoltaics (PV), wind, fuel cells, landfill gas, low-emission advanced biomass-conversion technologies, run-of-the-river hydropower, wave or tidal power, or ocean-thermal power are eligible.* Most program support will target PV and fuel-cell projects. Projects that have potential to reduce the federally mandated congestion charges in Connecticut will be favored. This program is supported by the Connecticut Clean Energy Fund (CCEF), which, after exceeding -- by four megawatts (MW) -- its objective of incenting the installation of 5 MW of customer-side DG projects by mid-2007, has committed to adding 16.5 MW to Connecticut’s renewable generating capacity by 2010.
The total funding allocated for all selected projects under the On-Site Renewable DG Program is $66.24 million through 2010. All projects must have a minimum system capacity of 10 kilowatts (kW), and projects must use an energy-generation device that is commercially available and offers warrantees, spare parts and service commensurate with commercial status. Facilities must be located in Connecticut within the service territory of Connecticut Light and Power (CL&P) or United Illuminating (UI). Award recipients are required to operate the system for at least 10 years for wind-energy projects and fuel cells, and for at least 15 years for PV projects.
The maximum individual project award is $4 million, with the exception of PV-only projects, which are limited to $800,000 per project (for non-profits). In addition, grants of up to $50,000 per installation are available to support site-specific technical studies and financial feasibility studies. Furthermore, eligible clean-energy projects installed in the congested area of southwestern Connecticut on or before June 30, 2008, receive a premium of 2¢ per kilowatt-hour (kWh), based on the estimated lifetime output of the system. The actual grant amount will be determined by an assessment of the difference between the host site's cost of energy that would be displaced by the proposed on-site generating equipment, and the total cost and value of the energy provided by the DG system. The following funding limits and evaluation timeframes apply to individual projects:- Solar: incentives range from $3.50 per watt (PTC**) to $4.75 per watt, depending on applicant type, system size and LEED certification; 20-year evaluation timeframe. Incentive funding for PV projects is limited to 200 kW (PTC) per project. PV projects are limited (in kW-AC) to the difference between a facility's most recent 12 months' peak demand and the “base load.”
- Fuel cells: up to $4.70 per watt; 10-year evaluation timeframe. Fuel-cell projects with a capacity up to 1,000 kW are eligible for an incentive up to $4.70 per watt. Fuel-cell projects with a capacity greater than 1,000 kW are limited to an incentive of $3.20 per watt.
- Small wind: $3.60 per watt; 15-year evaluation timeframe.
- Small biomass: $3.30 per watt; 10-year evaluation timeframe.
- Landfill gas: $3.20 per watt; 10-year evaulation timeframe.
- Hydro: to be determined; 20-year evaluation timeframe.
The CCEF takes ownership of the renewable energy credits (RECs) associated with electricity generation by PV and wind projects 50 kW-PTC and larger that receive funding. In turn, the CCEF compensates PV system owners based on the estimated present value of the system's RECs over 15 years.
The grant (excluding the southwestern Connecticut premium) will be disbursed in installments to the owner of the equipment, based on project milestones and according to the following schedule, regardless of technology:- Delivery of generating equipment to site: 50%.
- Startup, commissioning and inspection: 40%.
- After six months of successful operation: 10%.
The final grant payment will be awarded provided that the system has produced at least 70% of the projected AC energy production during the first six months of operation, as verified by the CCEF's independent consulting engineer.
Applications are accepted on a rolling basis. All applicants are encouraged to schedule pre-application discussions with the CCEF staff before submitting an application under this program.
* The CCEF is also authorized to fund "other energy resources and emerging technologies which do not involve the combustion of coal, petroleum or petroleum products, municipal solid waste or nuclear fission.” Resources and technologies not listed above will be addressed on a case-by-case basis, with substantial weight being given to those resources and technologies approved as a "Class I" renewable-energy source by the Connecticut Department of Public Utility Control (DPUC).
** PTC is the acronym for PVUSA Test Conditions.
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