(a) As used in this section and section 16-245gg:
(1) “Performance-based incentive” means an incentive paid out on a per kilowatt-hour basis.
(2) “Expected performance-based buydown” means an incentive paid out as a one-time upfront incentive based on expected system performance.
(3) “Qualifying residential solar photovoltaic system” means a solar photovoltaic project that receives funding from the Connecticut Green Bank, is certified by the authority as a Class I renewable energy source, as defined in subsection (a) of section 16-1, emits no pollutants, is located on the customer-side of the revenue meter of one-to-four family homes and serves the distribution system of an electric distribution company.
(4) “Solar home renewable energy credit” means a Class I renewable energy credit created by the production of one megawatt hour of electricity generated by one or more qualifying residential solar photovoltaic systems with an approved incentive from the Connecticut Green Bank on or after January 1, 2015.
(b) The Connecticut Green Bank, established pursuant to section 16-245n, shall structure and implement a residential solar investment program established pursuant to this section that shall support the deployment of not more than three hundred fifty megawatts of new residential solar photovoltaic installations located in this state on or before (1) December 31, 2022, or (2) the deployment of three hundred fifty megawatts of residential solar photovoltaic installation, in the aggregate, whichever occurs sooner, provided the bank shall not approve direct financial incentives under this section for more than one hundred megawatts of new qualifying residential solar photovoltaic systems, in the aggregate, between July 2, 2015, and April 1, 2016. The procurement and cost of such program shall be determined by the bank in accordance with this section.
(c) The Connecticut Green Bank shall offer direct financial incentives, in the form of performance-based incentives or expected performance-based buydowns, for the purchase or lease of qualifying residential solar photovoltaic systems or power purchase agreement from such systems until the earlier of the following: (1) December 31, 2022, or (2) the deployment of three hundred megawatts, in the aggregate, of residential solar photovoltaic installation. The bank shall consider willingness to pay studies and verified solar photovoltaic system characteristics, such as operational efficiency, size, location, shading and orientation, when determining the type and amount of incentive. Notwithstanding the provisions of subdivision (1) of subsection (h) of section 16-244c, the amount of renewable energy produced from Class I renewable energy sources receiving tariff payments or included in utility rates under this section shall be applied to reduce the electric distribution company's Class I renewable energy source portfolio standard until the Public Utilities Regulatory Authority approves the master purchase agreement pursuant to subsection (e) of section 16-245gg.
(d) The Connecticut Green Bank shall develop and publish on its Internet web site a proposed schedule for the offering of performance-based incentives or expected performance-based buydowns over the duration of any such solar incentive program. Any such direct financial incentives shall only apply to the first twenty kilowatts of direct current of the qualifying residential solar photovoltaic system. Such schedule shall: (1) Provide for a series of solar capacity blocks the combined total of which shall be a maximum of three hundred megawatts and projected incentive levels for each such block; (2) provide incentives that are sufficient to meet reasonable payback expectations of the residential consumer and provide such consumer with a competitive electricity price, taking into consideration the estimated cost of residential solar installations, the value of the energy offset by the system, the cost of financing the system, and the availability and estimated value of other incentives, including, but not limited to, federal and state tax incentives and revenues from the sale of solar home renewable energy credits; (3) provide incentives that decline over time and will foster the sustained, orderly development of a state-based solar industry; (4) automatically adjust to the next block once the board has issued reservations for financial incentives provided pursuant to this section from the board fully committing the target solar capacity and available incentives in that block; and (5) provide comparable economic incentives for the purchase or lease of qualifying residential solar photovoltaic systems or power purchase agreements from such systems. The Connecticut Green Bank may retain the services of a third-party entity with expertise in the area of solar energy program design to assist in the development of the incentive schedule or schedules. The Department of Energy and Environmental Protection shall review and approve such schedule. Nothing in this subsection shall restrict the Connecticut Green Bank from modifying the approved incentive schedule to account for changes in federal or state law or regulation or developments in the solar market when such changes would affect the expected return on investment for a typical residential solar photovoltaic system by ten per cent or more. Any such modification shall be subject to review and approval by the department.
(e) The Connecticut Green Bank shall establish and periodically update program guidelines, including, but not limited to, requirements for systems and program participants related to: (1) Eligibility criteria; (2) standards for deployment of energy efficient equipment or building practices as a condition for receiving incentive funding; (3) procedures to provide reasonable assurance that such reservations are made and incentives are paid out only to qualifying residential solar photovoltaic systems demonstrating a high likelihood of being installed and operated as indicated in application materials; and (4) reasonable protocols for the measurement and verification of energy production.
(f) The Connecticut Green Bank shall maintain on its Internet web site the schedule of incentives, solar capacity remaining in the current block and available funding and incentive estimators.
(g) Funding for the residential solar investment program (1) may include up to one-third of the moneys collected annually under the surcharge specified in section 16-245n; (2) shall include all of the revenue from the solar home renewable energy credit program; and (3) may be supplemented by federal funding as may become available.
(h) The Connecticut Green Bank shall identify barriers to the development of a permanent Connecticut-based solar workforce and shall make provision for comprehensive training, accreditation and certification programs through institutions and individuals accredited and certified to national standards.
(i) The Public Utilities Regulatory Authority shall provide an additional incentive of up to five per cent of the then-applicable incentive provided pursuant to this section for the use of major system components manufactured or assembled in Connecticut, and another additional incentive of up to five per cent of the then-applicable incentive provided pursuant to this section for the use of major system components manufactured or assembled in a distressed municipality, as defined in section 32-9p, or a targeted investment community, as defined in section 32-222.
(j) On or before January 1, 2017, and every two years thereafter for the duration of the program, the Connecticut Green Bank shall report to the joint standing committee of the General Assembly having cognizance of matters relating to energy on progress toward the goals identified in subsection (b) of this section.
(P.A. 11-80, S. 106; P.A. 13-5, S. 47; P.A. 14-94, S. 29; 14-134, S. 16; P.A. 15-194, S. 1; P.A. 16-212, S. 5; P.A. 19-35, S. 4.)
History: P.A. 11-80 effective July 1, 2011; P.A. 13-5 amended Subsec. (b) to make a technical change, effective May 8, 2013; pursuant to P.A. 14-94, “Clean Energy Finance and Investment Authority” and “authority” were changed editorially by the Revisors to “Connecticut Green Bank” and “bank”, respectively, effective June 6, 2014; P.A. 14-134 amended Subsec. (b) by replacing reference to Sec. 16-243b with reference to Sec. 16-243h, effective June 6, 2014; P.A. 15-194 added new Subsec. (a) re definitions, redesignated existing Subsec. (a) as Subsec. (b) and amended same to add provisions re structure and implementation of program and determination of cost of program, redesignated existing Subsec. (b) as Subsec. (c) and amended same to replace provision re performance-based incentives with provision re time until which direct financial incentives are offered and to replace provision re receipt of expected performance-based buydowns with provision re authority's approval of master purchase agreement, redesignated existing Subsec. (c) as Subsec. (d) and amended same to add provision re publishing proposed schedule on web site and replace minimum of 30 megawatts with maximum of 300 megawatts in Subdiv. (1), add provisions re providing consumer with competitive electricity price, cost of financing and review and approval of modification system and replace 20 per cent with 10 per cent re modifying incentive schedule in Subdiv. (2), redesignated existing Subsecs. (d) and (e) as Subsecs. (e) and (f), redesignated existing Subsec. (f) as Subsec. (g) and amended same to replace provision re performance-based incentive program with provision re solar investment program, redesignated existing Subsec. (g) as Subsec. (h), added Subsec. (i) re additional incentive, redesignated existing Subsec. (h) as Subsec. (j) and replaced first report date of “2014” with “2017”, and made technical changes, effective July 2, 2015; P.A. 16-212 amended Subsec. (a)(3) by deleting “is less than twenty kilowatts in size,”, amended Subsec. (b) by replacing “does” with “shall” and making technical changes, amended Subsec. (c) by adding “or power purchase agreement from such systems”, amended Subsec. (d) by adding provisions re applicability of direct financial incentives to first 20 kilowatts of direct current and, in Subdiv. (5), adding “or power purchase agreements from such systems”, effective June 10, 2016; P.A. 19-35 amended Subsec. (b) by replacing “three hundred” with “three hundred fifty” in two instances, effective June 28, 2019.