Presentation

10/8/2014
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
2
2
3
7
Installed Capacity
(kW)
10,000
10,000
8,460
28,460
Technology
Solar PV
Fuel Cell,
Wind
Fuel Cell,
Solar PV
Fuel Cell,
Solar PV,
Wind
Contracting
Utility PPA’s
Utility PPA’s
Own and
Operate
# of Projects
REFERENCES
Data provided by DEEP inclusive of Docket No. 12-01-05, 12-01-32, 12-05-13, and 13-06-27.
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10/8/2014
Behind the Meter Incentives
ZREC, LREC, and RSIP
ZREC
Small
(<100kW)
# of Projects
Inst. Cap. (kW)
Year 1 – Step 1
Year 3 – Step 4
($/ZREC or ZRECEQ)
LREC
Medium
(100-250 kW)
Large
(250-1,000 kW)
RSIP
LREC
CL&P
UI
CL&P
UI
CL&P
UI
CL&P
UI
CGB
473
74
200
34
64
17
34
9
5,598
21,803
4,595
38,087
6,302
44,835
10,438
14,985
5,110
40,315
$164
$81
$149
$130*
$141
$74
$139
$114*
$99
$58
$121
$66
$72
$63*
$51
$56
$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.
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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)
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10/8/2014
Residential Solar PV in Connecticut
2004 through 2014 (as of October 2, 2014)
$/W
Installed costs and incentives are decreasing, while
Access to financing and marketing are increasing
$10.00
$9.00
kW
30,000
$8.70
$8.61
$8.71
$8.19
$8.14
$8.00
25,000
$7.58
$7.00
$4.28
$6.00
$3.62
$4.36
$4.52
20,000
$6.27
$4.24
$5.35
$3.88
$4.81
$5.00
$3.39
15,000
$4.43
$4.37
$4.00
$3.67
$3.14
$3.00
$2.00
$4.33
$4.52
$4.34
$4.19
$3.95
10,000
$3.11
$3.29
$3.70
5,000
$2.88
$1.00
$1.68
$1.67
$1.32
$1.08
2011
2012
2013
2014
$0.00
0
2004
2005
2006
2007
2008
2009
$ Ratepayer Funds/W
2010
$ Non-Ratepayer Funds/W
# Projects
kW STC Installed
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Marketing and Financing
144
Solarize and GoSolarCT
Durham
125
Solar Contracts Signed
During and Since the
2012 Solarize
Connecticut Pilot
Fairfield
69x
121
84 25x
97
Westport
58 24x
48
44x
62
Portland
Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13
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)
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10/8/2014
The Green Bank Model Works
Doing More, Faster and with Less
FY 2000-FY 2011
(CCEF)
FY 2012-FY 2014
(CGB)
11
3
43.1 / 2,299
65.3 / 3,189
Total Investment
($ MM)
$334.2
$350.2
Ratepayer Investment
($ MM)
$153.1
$100.0
0
57
Years
Energy
(MW / Lifetime GWh)
Ratepayer Investment as
Loans (%)
Jobs ↑ GHGs ↓
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Purpose of a Green Bank
Sustainable Clean Energy Marketplace
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2
3
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• Government Subsidies
• 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)
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10/8/2014
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.
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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
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5
10/8/2014
Green Bank Movement
United States
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Thank You!
Bryan Garcia
Connecticut Green Bank
President and CEO
845 Brook Street
Rocky Hill, CT 06067
www.ctcleanenergy.com
[email protected]
(860) 257-2170
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