Renewable Energy-Related Legislation and Loan programs in Connecticut
According to Conn. Gen. Stat. § 16-245n in August 2005, Operational Demonstration Program was launched by the Connecticut Clean Energy Fund (CCEF). This program was introduced to promote clean energy technologies like solar thermal electric, landfill gas, wind, wave energy, fuel cells. Biomass, small hydroelectric, ocean thermal, Tidal energy and other distributed generation technologies. Other than these, emerging technologies not involving combustion of coal, petroleum, municipal solid waste are also eligible for this program. Companies starting out their own near-commercial projects are eligible to apply. Normally companies will have to submit proposals for various demonstration projects and the commercial products must be developed within a specified period of time. The demonstration projects must prove to produce an electricity of at least 1 kW. A total amount of $4 million has been allotted under this program. Companies can secure funding in the forms of unsecured loan. 25% of the whole funding must be provided as cost-share. The maximum amount allowed is capped at $750,000. If any product is found to exceed a higher revenue threshold, then the company will be charged for additional product revenue by the CCEF.
The New Energy technology (NET) was introduced to promote the use of most innovative energy saving and renewable energy technologies in commercial sector. The purpose of this program was to assist various projects which are quite promising to save energy, to improve air quality and to create new employment opportunities in the market. Various eligible renewable technologies include passive solar space heat, solar space heat, solar water heat, fuel cells, municipal solid waste, geothermal electric, geothermal heat pumps, photovoltaic, solar thermal electric, Daylighting, Tidal energy, wave energy and Ocean energy. Applicants submitting promising project proposals using one of these technologies will receive grants under this program. Additionally they will also receive financial and technical assistance in finding potential industry partners and other federal programs for their projects. This program has been in effect for the last 14 years providing grants to various small firms and helping them to implement new energy related technologies. The maximum amount that can be sanctioned under this grant scheme is capped at $10,000 and up to 5 small firms can avail it. Any resident or company in Connecticut having less than 30 employees is eligible to apply for. The fund can be used for product development, patent application, prototype testing, payroll, business plan development and product marketing.
Under the residential leasing program for solar energy CT solar lease, Connecticut homeowners are eligible to lease a photovoltaic system with no down payment and low fixed monthly repayments – less than $120 pm for a 5 kW system. Owners of 1o 4 family homes are eligible to apply for this lease program and they must have an annual income of not greater than 200% of the particular area’s median income. They will have the full flexibility to choose the PV installer. The generated electricity will be used to reduce the homeowner’s electric bill. The lease will be valid for 20 years. After having used the system for 15 years the homeowners will be presented with 3 options – purchase of the system at a reduce rate, removal of the system at his own expense and extension of the lease for another 5 years at a compromised monthly rate. After serving the 20 years of the lease agreement the owner will have to go for either of the first two options. In any case if the owner is to sell the home itself, then the new home owner will take all the responsibilities of the prevailing lease otherwise the previous homeowner should continue with the terms of the lease. During the period of the lease, the homeowner is responsible for any kind of repairing or maintenance cost. The CCEF has allotted a fund comprising $38.6 million under this residential lease program. The aim is to get 1,000 new PV systems installed by the year of 2011.
According to Conn. Gen. Stat. § 12-412 enacted on June 2007 all solar energy equipments and geothermal heat pumps installed in the State of Connecticut were exempted from sales and use tax. Though the State has already exempted geothermal systems from sales tax, but it expired on June 30, 2007. Later passive and active solar water heating systems, active and passive solar space heating systems and solar electric systems were also added to the list in HB 7432. This exemption doesn’t have any expiration date. Under this exemption a 100% sales and use tax exemption can be availed. This is applicable in residential, commercial and consumer sector.
Connecticut Clean Energy Fund (CCEF) started its Community Innovations Grants Program (CIGP) in June 2006 as a pilot program. The main aim of providing this funding is to increase awareness among communities and individuals regarding clean energy and to promote the idea of building model sustainable communities. Under this State Grant program an amount in the range of $1,000 to $4,000 can be availed. Normally 50 municipalities are eligible for a micro-grant of $4,000 and 45 municipalities are eligible for $2,000 micro grant. Communities are also liable to receive to block grants. The whole program and funds are managed by local energy task force in each community. These local task forces also provide grants to individuals or organizations to initiate projects promoting clean energy awareness and education. Various individuals seeking this grant should apply to these local energy task forces. An amount in the range of $250 to $2,000 can be availed. Individuals must have a project which supports the main idea of this grant program – increasing clean energy awareness and education.
In December 2005 CCEF started Connecticut’s On-Site Renewable Distributed Generation (DG) Program. Under this program all systems producing electricity by the use of solar photovoltaic (PV), wind, fuel cells, landfill gas, wave or tidal power, ocean-thermal power are eligible for grants covering installation charges. The electricity producing system can be installed at industrial, commercial and institutional buildings. Ana mount of $66.24 million has been allotted for this State Grant program. The system must have a capacity of at least 10 kW to become eligible for this grant. If a project receives the grant then it must continue using the system for at least 10 years for wind energy projects and for 15 years for PV projects. An amount of $850,000 can be availed by individual PV projects and in case of other project the amount is capped at $4 million. All renewable energy credits (RECs) associated with the PV or wind projects will be owned by the CCEF. N return the owner of the system will be compensated by the CCEF.
Connecticut Housing Investment Fund, Inc. (CHIF) started providing Energy Conservation Loans for single families to owners of 1 to 4 family homes in Connecticut. The owner must have a limited annual income according to the family size and also the location of the house. The funding can be used for energy conservation improvements. Interest rate will mainly depend on the applicant’s family size and annual income. The repayment tenure is kept at 10 years. Large residential properties can also avail loan under multi-family Energy Conservation Loan program. The maximum amount is capped at $25,000 for single family loans and $60,000 for multi-family loans. Eligible renewable technologies under this loan program include solar water heat, solar space heat, passive solar space heat, wind, biomass, geothermal heat pumps etc.
The Energy Conscious Blueprint program from the United Illuminating Company (UI) provides financial assistance to its industrial and commercial customers who build energy efficient technologies into their facilities. The program mainly offers financial incentives to new constructions and renovations. Projects owners, designers and architects of industrial and commercial buildings can avail design grants and implementation grants under this program. The customers will get assistance from UI throughout all the stages of the project with a wide range of structured and custom options. The funding can be availed based on the size of the total area or the percentage by which the building exceeds energy efficiency code. Additionally rebates also can be availed under this Energy Conscious Blueprint program.
Connecticut Energy Efficiency Fund started Small Business Energy Advantage Program as one of its other several innovative solutions and this program is administered by the Connecticut Light and Power (CL&P). This program is a combined loan and rebate program. CL&P’s customers availing this incentive have to use the funding for energy efficiency improvements in their facilities. This utility loan is provided at a 0% interest and the repayment tenure is kept at 30 months. CL&P’s business customers with an annual demand in between 10 kW to 200 kW are eligible for this program and industrial customers with a demand less than 50 kW are preferred.
Norwich Public Utilities (NPU) started providing zero percentage financing to its industrial and commercial customers. This financing program is administered by Norwich Public Utilities (NPU) in partnership with three local banks. Customers should have projects which qualify under the terms of energy efficiency improvement programs. A technical evaluation of the project is done before giving the incentive to customers and the result must prove that the project would have payback of less than 5 years.
Rebate Programs
Connecticut Light & Power – Commercial Energy Efficiency Rebates – This rebate is offered by Connecticut Light & Power (CL&P) to its industrial and commercial customers for purchasing certain energy efficiency equipments. Some of the eligible equipments are HVAC equipment, lighting, vending machines and motors. Under this utility rebate program a fixed amount is provided to the applicant on a per-unit basis. The amount will greatly depend on the efficiency measures and customers will receive the amount directly after the installation of the systems.
Connecticut Light & Power – Energy Opportunities Efficiency Program – Under this rebate program and Retro Commissioning Program the CL&P offers financial incentives to its industrial, commercial and municipal customers to improve energy efficiency of their existing facilities. The funding comes in form of express rebates and low or zero interest loans. CL&P will employ energy experts to work with its customers to identify various energy saving opportunities. After the completion of the project and verification of various energy measures payment is made to the customers.
Groton Utilities – Commercial & Industrial Energy Efficiency Rebate Programs – A number of financial incentives are provided by Groton Utilities to its business customers to install energy efficient equipment in their facilities. Various eligible energy efficiency technologies include Lighting, heat pumps, lighting controls/sensors, motors, air conditioners, vending machine control equipment etc. Under this utility rebate program at maximum 50% of the whole project cost can be availed. The applicants must get rebate applications approved before purchasing any equipment. Cash incentives are also provided to customers who participate in Groton Utilities Demand Response program. Under this program the customer is supposed to reduce electricity consumption when the system is constrained and the price is also high.
