On-Site Renewable DG Program

December 17, 2012

Summary

Note: This program is no longer open.  The most recent RFP closed March 30, 2012.  It is not likely that this program will be re-opened in the future.  This summary is for information only.

Connecticut's On-Site Renewable Distributed Generation (DG) Photovoltaic Program is open to for-profit and non-profit entities, municipalities, school districts, and state and federal government agencies located within the Connecticut Light & Power (CL&P) and United Illuminating (UI) utility territories.

Incentive amounts are not set; rather they are designed to help applicants "break even" with a "reasonable rate of return" on their renewable energy investment. Projects must be utilizing commercially available technologies (no prototypes). Projects should be in development phase (not construction phase) and should have made progress in permitting as well as site control (most likely through ownership). Projects owned by third-parties are eligible. Projects that incorporate an educational component (such as disseminating lessons learned or how to overcome obstacles or what the benefits of the clean energy project are) will be preferred. Only projects developed for on-site use are eligible (net metered systems are allowed for occasional exports, but the grant will be reduced if the system is oversized and significant excess energy is expected). Projects that require minimal support from this grant will be given priority. Projects must have a minimum peak demand of 10 kilowatts to qualify.

Projects will be evaluated on four major criteria:

• PV Project Economics
• Technology Appropriateness (“Deployment of the Technology”)
• Feasibility and Probability of Completion
• Societal Benefits (such as in-state job creation, dissemination efforts, project diversity)

Incentive amounts are calculated based on the project specifics, but the maximum incentive is $3.60/Watt (PTC) for systems 100 kW (AC) and smaller and $3.30/Watt (PTC) for systems greater than 100 kW up to 250 kW.

Applicants that receive funding under this solicitation will not be eligible for future “zero-emission” renewable energy credits (ZRECs) or low-emission renewable energy credits (LRECs) (see DSIRE’s summary of the Connecticut Renewables Portfolio Standard for more information), but they may retain ownership of the Class I renewable energy credits (RECs), retire the RECs or sell them to CEFIA for $10.00 per Megawatt hour for 15 years.

There is $4,500,000 for solar, $2,500,000 for fuel cells, and $1,000,000 for other technologies available under the current RFPs.

History

Connecticut's On-Site Renewable Distributed Generation (DG) Program has provided 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 have been eligible. In the past, most program support has targeted PV and fuel-cell projects. This program was supported by the Connecticut Clean Energy Fund (CCEF), which, after exceeding -- by four megawatts (MW) -- its objective of incentivizing the installation of 5 MW of customer-side DG projects by mid-2007, 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 through fiscal year 2010 was $66.24 million. In 2011, the CCEF became the Clean Energy Finance and Investment Authority (CEFIA).