Connecticut Green Bank

Transcription

1 Connecticut Green Bank November 11, pm Eastern Moderators: Joel Rogers, Center on Wisconsin Strategy (COWS) James Irwin, Center on Wisconsin Strategy (COWS)

2 Agenda Welcome (5 min) Presenter (50 min) Bryan Garcia, President, Connecticut Clean Energy Finance and Investment Authority Questions and discussion (35 min) Close

3 Clean Energy Finance and Investment Authority From Creating a Market for Renewable Energy to Leading the Way Towards a Clean Energy Economy Efficiency Cities Network November 8,

4 Yankee Ingenuity History of clean energy innovation Daniel Halladay: Wind Turbine Owned the Halladay Windmill Company in Coventry, CT Built and manufactured the first commercially successful self governing new windmill in the U.S. in 1854 Relocated to Batavia, Illinois because of delays in production and shipping as a result of the Civil War. Albert Pope: Electric Vehicle Owned the Pope Manufacturing Co. in Hartford, CT Built electric vehicles under the Columbia Automobile Co. in 1897 Was bought out by the Electric Vehicle Co. and went under in 1899 Bernard Baker: Fuel Cell Founder, president and CEO of ERC in Danbury, CT Builds molten carbonate fuel cells for low emission, baseload, distributed generation applications Receives a two-year 70 MW order from POSCO Power, a South Korean independent power producer in

5 Public Act Catalyst #1 Creating a new market for renewable energy Grants Loans Grants and Incentives Equity 3

6 Catalyst for a New Industry Rebates by Sector and Technology (2001 through 2011) Sector Solar PV Fuel Cells Geothermal Solar Thermal Total % of Total by Sector Residential $45,500,000 - $2,500,000 $500,000 $48,500,000 29% C&I $53,500,000 $13,750,000 $500,000 $2,250,000 $70,000,000 42% Municipal $1,750,000 $3,250, ,000 50,000 $5,150,000 3% Institutional $23,500,000 $12,000,000 $750,000 $500,000 $36,750,000 22% Non-Profit $2,250,000 $1,750,000 $500,000 $50,000 $4,550,000 3% Total Rebates $126,500,000 $30,750,000 $4,350,000 $3,350,000 $164,950,000 % of Total by Technology Deployed 35 MW Rebate / Unit $3,600 / kw % of Total Project Cost 77% 19% 3% 2% 11 MW $2,800 / kw 3,200 Tons $1,350 / Ton 1,500 Collectors $2,250 / Collector 49% 45% 16% 49% 46% 4

7 Catalyst of Innovation Supporting entrepreneur ecosystem and hubs Solar Testing and Training Lab University of New Haven Energy Sciences Institute Yale University s West Campus 5

8 Catalyst for Consumer Action Communities are leading by example 6

9 Public Act Catalyst #2 Building a clean energy economy Grants Equity Loans Finance and Investments Financing energy efficiency projects Loan guarantees Securitization Bonding Community Development Financial Institution Energy consumption data Credit enhancements Energy savings performance contracts Property Assessed Clean Energy 7

10 Private Capital Leverage Public Resources From being a catalyst for a new industry to being a catalyst for a new clean energy economy $8 $7 Attract Private Capital (i.e. Loan Guaranty) 2 3 Catalyst #2 (PA 11-80) Financing CEFIA $6 $5 $4 $3 $2 $1 $0 $2 $1 Public Capital 1 Catalyst #1 (PA 98-28) Subsidies CCEF $0 8

11 Clean Energy Defined Towards a clean energy economy + 9

12 Clean Energy Valleys of Death Where does CEFIA provide value? TECHNOLOGY INNOVATION MANUFACTURING DEPLOYMENT 10

13 Change in Leadership Board of Directors Name Organization Appointer Catherine Smith (or designee) DECD Statute (PA 11-80) Dan Esty (or designee) DEEP Statute (PA 11-80) Denise Nappier (or designee) State Treasurer Statute (PA 11-80) Patricia Wrice Operation Fuel Speaker of the House Norma Glover NJG Associates Minority Leader of the House Matt Ranelli Shipman & Goodwin President Pro Temp Senate TBD TBD Minority Leader of the Senate Reed Hundt Coalition for Green Capital Governor Mark Cirilli Mission Point Capital Governor John Olsen AFL-CIO Governor 11

14 Renewed Structure Organizational Chart Technology Innovation Deployment Early R&D/ proof of concept Demo & scale-up Commercial roll-out Diffusion & maturity From Idea to Commercial Viability Reducing Energy Demand and Increasing Renewable Energy Supply Law & Policy Finance & Investments Marketing & Outreach Evaluation, Measurement and Verification 12

15 Purpose Attract and deploy capital to finance the clean energy and energy efficiency goals for Connecticut 13

16 Goals Become the most energy efficient state in the nation Scale-up the deployment of renewable energy in the state Support the infrastructure needed to lead the clean energy economy 14

17 Technology adoption Financing tools Investment in technology commercialization and finance the full-scale deployment of clean energy Loans Loan guaranty Credit enhancements Power purchase agreements Energy savings performance contracts Leases Insurance products PACE Residential Commercial Industrial Innovative new technologies Support commercialization Proven commercial technologies Help drive widespread adoption Institutional Municipal Non-Profit 15

18 Section 106 of Public Act Residential Solar PV Program Goal: At least 30 MW of new residential solar photovoltaic (PV) systems installed by 2022 Direct financial incentives For purchase or lease of qualifying residential solar PV systems Incentives decline over time Funding: $ million over 10 years Program receives up to one third of ratepayer funds annually Development Path Stakeholder feedback all along Department of Energy best practice benchmarking Department of Energy and Environmental Protection approve the blocks Board of Director target approval date of December 16,

19 Section 124 of Public Act Connecticut Green Loan Guaranty Fund Up to $18 million in state bond funds for loan guarantees Guarantees loans by participating lenders for energy efficiency and renewable energy projects Projects include purchase and installation of: Clean energy generation systems Energy conservation materials Replacement furnaces and boilers Advanced energy-conserving equipment Eligible: individuals, nonprofits, small businesses ( 50 full-time employees) 17

20 Payment Approved Installers ITC Sells Note Connecticut Solar Lease Financial Innovation (Version 1.0) EquityCo, LLC (100% Equity) AdminCo,LLC (Program Admin) Clean Energy Deployment Fund Fund Equity DeveloperCo, LLC (Developer) Management Fee Services CT Solar Lease, LLC Lease Rebate/Incentive $23,400,000 Debt Service $15,200,000 CCEF (Debt and Incentive) Finance Energy Efficiency Green Loan Guaranty Fund Home Owner Solar PV System Installer (Approved by CCEF) REFERENCES Design 5.5% interest rate (4% to AFC First Financial for sourcing and servicing, 0.5% CT Solar Lease, and 1.0% to CCEF), secured, 200% of median income Consumer Credit Guidelines 640 if salaried, 680 if self-employed for at least 2 years, 720 if self-employed less than 2 years, no bankruptcy in last 7 years, debt to income or monthly obligations to monthly income 50% for all credit scores Performance 800 loans, 6.0 kw AC average system size, from $5,320/kW rebate in 2009 to $2,731/kW rebate in 2012, and 2 defaults. 18

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22 Undertake Energy Efficiency Quick payback to finance solar PV 20

23 Undertake Energy Efficiency Quick payback to finance solar PV 21

24 Deliver Measurable Results at Scale Capital and Consumers 22

25 Visit us online at Bryan Garcia President 865 Brook Street Rocky Hill, CT (860)

26 Contact Information for ECN Administrator - ecn@efficiencycities.org Listserv - ecnmembers@efficiencycities.org Website -