Clean Energy Incentive Programs – Connecticut Summary Dave Ljungquist Associate Director, Project Development February 18, 2010

Connecticut Clean Energy Fund  Created in 1998, launched in 2000  Mission: The CCEF promotes, develops and invests in clean energy sources for the benefit of Connecticut ratepayers  Funding:  Originally - surcharge on electric utility bills ~ $28 million/year  New – American Recovery & Reinvestment Act of 2009 ~ $20 million over next 30 months 3

CCEF Goals 1. Create a supply of clean energy (installed capacity) 2. Foster the growth, development and commercialization of clean energy technologies 3. Stimulate use of clean energy by increasing public awareness

Clean Energy Technologies -- Present Solar PV Wind Fuel Cells Biomass Landfill Gas Wave/Tidal Hydro Click here for more information.here

Clean Energy Technologies - New Solar Thermal Launched in October, 2009 Ground-Source Heat Pump (Geothermal) Launched in January, 2010

CCEF Program Summary  Fuel Cells – On-site Renewable Dist. Gen. (OSDG)  $8 million ARRA, $12 million CCEF (all commercial)  Solar PV – Residential Programs  Residential rebate - $1.5 million ARRA, $1.5 million CCEF  Residential lease - $1.2 million  Both will exhaust funds by early Spring  Solar PV – Commercial Programs (OSDG)  For-profit grants - $4.3 million CCEF  NFP grants - $3.9 million CCEF, $1.5 million ARRA  No new applications being accepted  Backlog of commercial applications will likely exhaust funding by 6/30/2010 3

CCEF Program Summary  Wind, hydro, other (OSDG)  $950,000 CCEF  Likely to last through fiscal year (6/30/2010)  Solar Thermal – new program  Launched in October  Residential rebate - $1.8 million ARRA  Commercial rebate - $1.8 million ARRA  Geothermal Ground Source Heat Pumps – new program  Launched in January  Residential rebate - $2.25 million ARRA  Commercial rebate - $2.25 million ARRA  Incentives will be combined with CEEF program 3

 Up-front grant subsidizes purchase by homeowner  Up to $15,000 in incentives per project  Projects incented up to 10 kilowatts  Up to $1.75 per Watt PTC for 1 st five kW  Up to $1.25 per Watt PTC for next five kW  Incented size limited to site’s peak demand  Must use listed installer  Pays approx. 30% of total system cost  Benefits:  Good solar resources in CT  Easy to site  Stabilize a portion of electric bill  Reduce greenhouse gas emissions Small Solar PV Rebate Program (Res.) Click here for more information.here

CT Solar Lease Program (residential)  Zero down payment with low fixed payments  Payments less than $110.00/month with typical 5 kW system  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 

 Projects up to 2,000 kilowatts  Incentive cap = $2.50 per Watt  Incentive limited to site’s annual usage  Pays approx % of total system cost  Benefits:  Stabilize a portion of electric bill  Reduce greenhouse gas emissions  Can provide emergency power and heat  Limitations:  Site must have a minimum 300 kW base load  Site must be able to use at least 50% of “waste” heat  Must have access to natural gas service OSDG Program – Fuel Cell (Commercial) Yale – Peabody Museum Middletown High School

 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) OSDG Program – Wind

CCEF Solar Thermal (New Program)  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 50-70% 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 Oct-Mar output  Typically covers 20 – 30% of cost  Maximum incentive limits:  CI&I for-profit - $50,000  Not-for-profit and governmental - $82,500  Open to all Connecticut applicants 13

Geothermal Heat Pumps (New Program)  Use constant temperature of earth to provide heating, cooling and dehumidification  Typical System Components:  Underground pipe loops  Indoor heat pump unit  Air-handling system  System Considerations:  Subsurface conditions (rocky v. sandy)  Height of water table  Building structure & insulation  Each 1,000 sf requires 1-2 tons  Est’d cost $6K-$10K per ton

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  Covers about 20 – 30% of cost  Maximum incentive limits:  Residential – 6 tons  CI&I – 100 tons (150 tons for schools)  Open to all Connecticut applicants 15

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!!

What’s the Future Hold? State Funds May be able to keep current funding ($28 million/year) Residential PV programs will probably continue No more commercial PV grant program; CCEF pushing for “Solar REC” program like New Jersey’s Fuel cell program will continue Wind/hydro/biomass will continue or grow Feasibility study funding will likely increase Federal Funds Got $20 million, to be used by April, 2012 (as discussed) Nothing more forecast Hope that future federal programs provide long-term funding 17 Click here for more information.here

Clean Energy Communities Program  Steps: 1.Commit to 20% by 2010 Campaign 2.Commit to EPA Community Energy Challenge 3.Households and businesses support clean energy through CTCleanEnergyOptions sign- ups and clean energy systems  Reward: Earn clean energy systems  Solar PV  Solar Thermal  Wind Click here for more information.here

Communities Solar PV Opportunities  Each 100 points earns 1 kW of solar PV (or equivalent value technology )  Minimum 4 kW installation  Bonus kW for achieving milestones  Option to purchase additional kW  Limited grants available for towns to enhance earned kW  Towns may use block grants to purchase additional kW  Benefit from economies of scale Common Ground High School - New Haven

Program Contacts Dave Ljungquist: Rick Ross: (fuel cells) Christin Cifaldi: (solar photovoltaic) Bill Colonis: (solar thermal, geothermal) Connecticut Clean Energy Fund 200 Corporate Place, 3rd Floor Rocky Hill, CT

Community Programs Contacts Bob Wall: Jillian Carbone: Connecticut Clean Energy Fund 200 Corporate Place, 3rd Floor Rocky Hill, CT ools/tabid/104/Default.aspx

Visit us online at ctcleanenergy.com