Going solar in Connecticut

Connecticut's Clean Energy Fund was established in 1998 to support state investment and research in renewable energy. The Fund is administered by the Connecticut Green Bank and supported through a $0.001 cent/kWh surcharge on most customer electric bills. State legislators have granted the Green Bank a significant degree of autonomy in determining areas of investment; as such, it has participated in public/private partnerships to build renewable capital and established a PACE program as some of its more notable initiatives.

Beginning in 2010 with the passage of H.B. 5435, Connecticut offers sales/use tax exemptions on equipment used to manufacture solar PV/thermal, wind, and geothermal energy systems. Additional information on the exemptions can be found on the Connecticut Department of Revenue Services website.

State code compliance for renewable energy systems is managed by Connecticut's Office of the State Building Inspector. Localities will forward construction plans to the OSBI as a part of the compliance process, with the Department of Public Safety approving variances as needed. State building codes include the 2012 version of the International Energy Conservation Code along with establishing other energy efficiency requirements for new construction. Any residence up to four units in size is subject to the new codes. Any new building above a projected cost of $5 million or renovation above a projected cost of $2 million must meet LEED Silver certification or its equivalent. The builders need not seek formal certification, but should nonetheless follow the respective standards. Connecticut localities must include permit processes for rooftop solar panels and other PV systems. Applications should be accessible online and have a maximum review period of 30 days, taking into account state building codes in addition to local ordinances.

Solar and wind power contractors in Connecticut must obtain specialized licenses through the Connecticut Department of Consumer Protection. PV-1 is a limited license allowing contractors to work with solar and wind systems exclusively. Qualified contractors should have two years (4,000 hours) of apprentice/journeyman experience and 144 hours of vocational education. PV-2 is a limited license allowing journeymen to work with solar and wind systems under the supervision of an electrical contractor. Qualified journeymen should have completed an apprenticeship or have one year of vocational education. ST-1 is a full contractor's license allowing work on solar systems exclusively. Qualified contractors should have two years of journeyman experience or equivalent vocational education. ST-2 is a limited journeyman's license allowing work on solar systems exclusively. Qualifying journeymen should have completed their apprenticeship in solar work. The DCP also issues apprentice permits for solar system work under the supervision of a contractor or journeyman. Electrical contractors with E-1 or E-2 licenses, plumbers with P-1 through P-4 licenses, and HVAC contractors with S-1 through S-4 licenses do not need an additional solar license so long as they take the proper educational courses and pass an assessment.

With the Sherpa Predevelopment program at the Connecticut Green Bank, owners of multifamily residential property over five units may be eligible for specialized loans to fund energy efficiency predevelopment procedures. The Sherpa loan differs from the Navigator loan in its clear-cut staged approach, much of which is overseen by partner company New Ecology. In each of the three phases, New Ecology contractors will conduct energy baselining and auditing and draft designs for proposed projects. Loans can cover up to 75% of predevelopment expenditures, with the owner covering fixed copay amounts upfront. Additional information is available from the CGB website.

With the Sherpa Predevelopment program at the Connecticut Green Bank, owners of multifamily residential property over five units may be eligible for specialized loans to fund energy efficiency predevelopment procedures. The Sherpa loan differs from the Navigator loan in its clear-cut staged approach, much of which is overseen by partner company New Ecology. In each of the three phases, New Ecology contractors will conduct energy baselining and auditing and draft designs for proposed projects. Loans can cover up to 75% of predevelopment expenditures, with the owner covering fixed copay amounts upfront. Additional information is available from the CGB website.

"Smart-E" loans are specialized financial products offered through the Connecticut Green Bank and state Clean Energy Fund for residential renewable energy investments and energy efficiency improvement projects. Special loan terms include no down payment and below-market interest. Qualifying projects for Smart-E financing are broad and may include any project or device that quantitatively improves the energy efficiency of a home. Standard credit checks, administrative fees, and conditions may apply. Additional information is available directly from the CGB website.

Capital for Change is a Connecticut-based organization offering specialized loans for homeowners making energy efficiency improvements. The loan's payoff period can last for up to twelve years, with interests rates depending on the homeowner's income. No-interest loans are available for households below 50% of the median income line. Applicants should submit copies of mortgage statements and past tax returns. Additional information is available from the Capital for Change website.

With the Sherpa Predevelopment program at the Connecticut Green Bank, owners of multifamily residential property over five units may be eligible for specialized loans to fund energy efficiency predevelopment procedures. The Sherpa loan differs from the Navigator loan in its clear-cut staged approach, much of which is overseen by partner company New Ecology. In each of the three phases, New Ecology contractors will conduct energy baselining and auditing and draft designs for proposed projects. Loans can cover up to 75% of predevelopment expenditures, with the owner covering fixed copay amounts upfront. Additional information is available from the CGB website.

With the Sherpa Predevelopment program at the Connecticut Green Bank, owners of multifamily residential property over five units may be eligible for specialized loans to fund energy efficiency predevelopment procedures. The Sherpa loan differs from the Navigator loan in its clear-cut staged approach, much of which is overseen by partner company New Ecology. In each of the three phases, New Ecology contractors will conduct energy baselining and auditing and draft designs for proposed projects. Loans can cover up to 75% of predevelopment expenditures, with the owner covering fixed copay amounts upfront. Additional information is available from the CGB website.

Connecticut first established a Renewable Portfolio Standard in 1998, requiring all electric utilities in the state to source 24% of their energy from renewable sources by 2020. Various amendments have been passed since then raising the standard. Compliance with the standard is measured using two types of Renewable Energy Credits pegged to a fluctuating dollar value: one representing zero-emission renewables and another representing low-emission renewables. Each possible energy source is grouped into classes that may yield different amounts of RECs. The state has set a generation target for each class. Additional information is available from the Connecticut state website.

With the Sherpa Predevelopment program at the Connecticut Green Bank, owners of multifamily residential property over five units may be eligible for specialized loans to fund energy efficiency predevelopment procedures. The Sherpa loan differs from the Navigator loan in its clear-cut staged approach, much of which is overseen by partner company New Ecology. In each of the three phases, New Ecology contractors will conduct energy baselining and auditing and draft designs for proposed projects. Loans can cover up to 75% of predevelopment expenditures, with the owner covering fixed copay amounts upfront. Additional information is available from the CGB website.

With the Sherpa Predevelopment program at the Connecticut Green Bank, owners of multifamily residential property over five units may be eligible for specialized loans to fund energy efficiency predevelopment procedures. The Sherpa loan differs from the Navigator loan in its clear-cut staged approach, much of which is overseen by partner company New Ecology. In each of the three phases, New Ecology contractors will conduct energy baselining and auditing and draft designs for proposed projects. Loans can cover up to 75% of predevelopment expenditures, with the owner covering fixed copay amounts upfront. Additional information is available from the CGB website.

With the Sherpa Predevelopment program at the Connecticut Green Bank, owners of multifamily residential property over five units may be eligible for specialized loans to fund energy efficiency predevelopment procedures. The Sherpa loan differs from the Navigator loan in its clear-cut staged approach, much of which is overseen by partner company New Ecology. In each of the three phases, New Ecology contractors will conduct energy baselining and auditing and draft designs for proposed projects. Loans can cover up to 75% of predevelopment expenditures, with the owner covering fixed copay amounts upfront. Additional information is available from the CGB website.

The Connecticut Green Bank has overseen a Residential Solar Investment Program since 2012. The program's objective is to add 300 MW of residential solar PV to the state's grid by 2022 through incentivizing new installations. "Investment" incentives are available to residential properties of four families maximum linked to the Eversource or United Illuminating grids. Installation contractors may apply a "buydown" performance-based incentive at the time of purchase. Some customers may instead receive performance-based incentives at a kilowatt hour rate for the first six years of use. To receive the incentive, customers must undergo energy efficiency audits and select a qualifying contractor determined by CGB.

Beginning in 2011, the Connecticut legislature authorized local governments to establish their own PACE programs for homeowners to acquire offers and financing on energy efficiency improvement projects. Under a typical program, homeowners may utilize the marketplace to communicate directly with the lenders and contractors of their choice and arrange a specialized energy efficiency loan. Effectively, PACE loans come from the owner's local government. Payments are not collected by conventional means; rather, local property tax assessors will service the loan by placing a non-accelerated lien (senior to mortgages) on the property. This means that should the owner sell or transfer their property, payments will become the responsibility of the new owner. Certain safeguards are in place per FHFA directives, including loss reserve funds and disclosures. The directives also barred Fannie Mae and Freddie Mac from acquiring mortgages on property with standing PACE liens. Additional information is available through the C-PACE website.