Connecticut Green Bank Providing easy access to affordable capital Connecticut Business and Industry Association What s the Deal October 8, 2014 Grid-Tied Incentives 30 MW Grid-Tied Section 127 DEEP CL&P UI Total # of Projects 2 2 3 7 Installed Capacity (kw) Technology Solar PV Fuel Cell, Wind 10,000 10,000 8,460 28,460 Fuel Cell, Solar PV Contracting Utility PPA s Utility PPA s Own and Operate Fuel Cell, Solar PV, Wind REFERENCES Data provided by DEEP inclusive of Docket No. 12-01-05, 12-01-32, 12-05-13, and 13-06-27. 2 1
Behind the Meter Incentives ZREC, LREC, and RSIP CL&P UI CL&P UI CL&P UI CL&P UI # of Projects 473 74 200 34 64 17 34 9 Inst. Cap. (kw) 21,803 4,595 38,087 6,302 44,835 10,438 14,985 5,110 Year 1 Step 1 Year 3 Step 4 ($/ZREC or ZREC EQ ) Small (<100kW) $164 $81 $149 $130* $141 $74 ZREC Medium (100-250 kw) $139 $114* $99 $58 $121 $66 $72 $63* LREC Large (250-1,000 kw) LREC $51 $56 RSIP CGB 5,598 40,315 $106 $60 ZREC and RSIP reduction of the incentive of about 50% from then to now with deployment of 126 MW and 40 MW respectively LREC incentive around ACP still and deployment of 20 MW REFERENCES Data provided by CL&P, UI, and CGB. UI data does not include Year 3 for the small and medium ZREC. CL&P data does not include Year 3 for the LREC. * Through Year 2 weighted average price only and does not include Year 3. 3 ZREC and LREC Updates United Illuminating limited opening of the Year 3 RFP solicitation for medium-sized ZREC projects (i.e. 100-250 kw) Connecticut Light & Power limited opening of the Year 3 RFP solicitation for LREC projects C-PACE Financing if you haven t noticed already, using low-cost and long-term debt can make your projects more competitive in the ZREC and LREC auctions (i.e., lower your incentive price need) 4 2
Residential Solar PV in Connecticut 2004 through 2014 (as of October 2, 2014) $/W $10.00 Installed costs and incentives are decreasing, while Access to financing and marketing are increasing kw 30,000 $9.00 $8.00 $8.61 $8.14 $8.70 $8.71 $8.19 $7.58 25,000 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 $4.28 $4.36 $3.62 $4.52 $4.24 $6.27 $3.88 $5.35 $4.81 $3.39 $4.43 $4.37 $3.67 $3.14 $3.11 $3.29 $4.33 $4.52 $4.34 $4.19 $3.95 $3.70 $2.88 $1.68 $1.67 $1.32 $1.08 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20,000 15,000 10,000 5,000 0 $ Ratepayer Funds/W $ Non-Ratepayer Funds/W # Projects kw STC Installed 5 Marketing and Financing Solarize and GoSolarCT Solar Contracts Signed During and Since the 2012 Solarize Connecticut Pilot 121 84 58 48 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 69x 25x 24x 44x 144 Durham 125 Fairfield 97 Westport 62 Portland 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 REFERENCES Graphic created by Ken Gillingham, Assistant Professor at Yale University School of Forestry and Environmental Studies (2013) 6 3
The Green Bank Model Works Doing More, Faster and with Less Total Investment ($ MM) Ratepayer Investment ($ MM) Ratepayer Investment as Loans (%) FY 2000-FY 2011 (CCEF) FY 2012-FY 2014 (CGB) Years 11 3 Energy (MW / Lifetime GWh) Jobs 43.1 / 2,299 65.3 / 3,189 $334.2 $350.2 $153.1 $100.0 0 57 GHGs 7 Purpose of a Green Bank Sustainable Clean Energy Marketplace 1 Government Subsidies 2 3 4 Green Bank Financing with Reduced Subsidies Green Bank Financing with No Subsidies Private Sector Financing Only FINAL GOAL We are here We want to be here: Typical investors can buy clean energy bonds or products, supported by a pool of underlying projects. Clean energy upgrades (and therefore financing) is the norm for residents, businesses, and MUSH market Ex: ABS (car, home, timeshare, education loans) 8 4
New York Green Bank Follows Connecticut s Lead Through the New York Green Bank, we will leverage public dollars to attract private sector investment into building a new clean energy economy that will help make our state greener and create jobs With this initiative, we will promote job growth and business development, improve resiliency and air quality, and lower costs for consumers while providing them with greater choices and value for their money. When fully capitalized, the Green Bank is expected to have a $1 billion balance sheet. 9 New Jersey Energy Resilience Bank Follows Connecticut s Lead The launch of the Energy Resilience Bank, the first of its kind in the nation to focus on resilience, is yet another effort of the Christie Administration to increase energy resilience at critical facilities throughout New Jersey Increasing energy resilience, whether through the Energy Resilience Bank, the BPU approved resiliency improvement measures implemented by utility companies or NJ s Clean Energy Program, will minimize the potential impacts of future widespread power outages due to major storms like Superstorm Sandy. The bank is capitalized with $200 million through a federal Community Development Block Grant for Disaster Recovery as a result of Superstorm Sandy 10 5
Green Bank Movement United States 11 Thank You! Bryan Garcia Connecticut Green Bank President and CEO 845 Brook Street Rocky Hill, CT 06067 www.ctcleanenergy.com bryan.garcia@ctcleanenergy.com (860) 257-2170 6