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

2. 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

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

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

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

6. 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

7. 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

8.  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

9. 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  www.ctsolarlease.com www.ctsolarlease.com

10.  Projects up to 2,000 kilowatts  Incentive cap = $2.50 per Watt  Incentive limited to site’s annual usage  Pays approx. 25-40% 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

11.  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

12. 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

13. 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

14. 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

15. 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

16. 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!! www.ctcleanenergy.com

17. 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

18. 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

19. 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

20. Program Contacts Dave Ljungquist: 860-257-2352 Rick Ross: 860-257-2887 (fuel cells) Christin Cifaldi: 860-257-2891 (solar photovoltaic) Bill Colonis: 860-257-2888 (solar thermal, geothermal) Connecticut Clean Energy Fund 200 Corporate Place, 3rd Floor Rocky Hill, CT 06067 http://www.ctcleanenergy.com

21. Community Programs Contacts Bob Wall: 860-257-2354 Jillian Carbone: 860-257-2881 Connecticut Clean Energy Fund 200 Corporate Place, 3rd Floor Rocky Hill, CT 06067 http://www.ctcleanenergy.com/communities http://www.ctcleanenergy.com/YourCommunity/HighPerformanceSch ools/tabid/104/Default.aspx

22. Visit us online at ctcleanenergy.com