After a series of setbacks, yesterday provided some optimism for the Connecticut solar power industry as a new source of funds has been found for the solar PV rebate program. Beginning September 1, 2010, the Connecticut Clean Energy Fund (CCEF) will be financing the PV Residential Rebate program leveraging capital through the American Reinvestment and Recovery Act (ARRA).
Connecticut’s funding for solar incentives has been declining from its peak almost five years ago. To make the outlook bleaker, the Governor of Connecticut vetoed an important piece of legislation that would originate the state’s own SREC system and ensure that solar incentives would resume. Funding for commercial PV rebates ended in 2009 and, as of June 30th, 2010, the residential PV rebate program had less than $1.2 million to fund additional residential projects. That meant only about 80 additional homes could qualify for a rebate. This puts the state in an unfortunate situation because it is ideal to utilize solar power with high electricity rates, a good amount of sun, and an environmentally aware population.
Through the ARRA program, the residential rebate program is rescued from the same fate as its commercial counterpart. The current residential PV rebate level of $1.75 per watt for the first 5 kW and $1.25 per watt for the next 5 kW (up to 10 kW total) will be maintained. There is one key difference between the previous solar rebate program and the ARRA program. Although solar panel installers will continue to submit rebate payment requests directly to CCEF, the rebate checks will now be sent to the system owner instead of the PV installer.
In order to qualify for ARRA funding, the residential solar power projects must be fully placed in service by April 30, 2012 or the installation will not be eligible to receive a rebate from CCEF. At present, CCEF and the Connecticut Office of Policy Management recognize fully placed in service to mean interconnected by Connecticut Light & Power (CL&P) or United Illuminating. CCEF has acknowledged that they cannot agree to PV installation extensions for any ARRA project past February 29, 2012.
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