| Implementing Sector | Utility |
|---|---|
| Category | Financial Incentive |
| State | Connecticut |
| Incentive Type | Solar Renewable Energy Credit Program |
| Web Site | Link |
| Funding Source | RPS |
| Budget | Approximately $9.6 million per year |
| Start Date | 05/01/2012 |
| Expiration Date | 05/01/2019 |
| Utilities | United Illuminating Co |
| Eligible Renewable/Other Technologies | Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Landfill Gas, Fuel Cells using Renewable Fuels |
| Applicable Sectors | Commercial, Construction, Industrial, Nonprofit, Federal Government, Installers/Contractors, Agricultural, Multifamily Residential, Integrators |
| Incentive Amount | Prices determined through competitive solicitation |
| Maximum Incentive | Maximum Bid price for Year 7 (2019): $98.18 per ZREC; $126 per LREC |
| Eligible System Size | ZRECs: Projects larger than 100 kW and up to 1 MW in nameplate capacity LRECs: Projects up to 2 MW in nameplate capacity |
| Duration | 15-year standard contract |
| Installation Requirements | Must have been installed after July 1, 2011 |
NOTE: Next round of solicitation is expected to open on July 1st, 2019.
In July 2011, Connecticut enacted legislation amending the state’s Renewables Portfolio Standard and creating two new classes of renewable energy credits (RECs): Zero Emission Renewable Energy Credits (ZRECs) and Low Emission Renewable Energy Credits (LRECs).
ZREC
The state’s two investor-owned electric utilities, United Illuminating (UI) and Eversource must enter into 15-year contracts for RECs from zero-emission “Class I” renewable energy facilities (on the customer side of the meter) larger than 100 kilowatts (kW) but not larger than one megawatt (MW). Zero-emission Class I facilities include solar, wind and hydro generators. Resulting zero emission RECs (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on ZREC contracts annually.* The price cap of one ZREC in 2012 was $350 and $325.50 in 2013. The Connecticut Public Utilities Regulatory Authority (PURA) may reduce the ZREC price cap annually by 3% to 7%.
LREC
The two utilities also must enter into 15-year contracts for RECs from low-emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes “low-emission facility” status for facilities that produce no more than 0.07 pounds per MWh of nitrogen oxides, 0.10 pounds per MWh of carbon monoxide, 0.02 pounds per MWh of volatile organic compounds, and one grain per 100 standard cubic feet. This category could include facilities that generate electricity using fuel cells, biomass or landfill gas. Resulting low-emission RECs (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on LREC contracts annually.*
The utilities jointly submitted their six-year solicitation plan in December 2011 and issued their first request for proposals (RFP) in May 2012. Winning bids are evaluated based on project quality, proposed ZREC or LREC price, and compliance with the RFP process. Bids are submitted online. Projects must be located in Eversource’s or UI’s service territory.
* PURA is authorized to review this budget and make adjustments after Year 3 for LRECs and Year 4 for ZRECs. It may terminate the program entirely if technology costs do not continue to fall. Because the utilities must spend $8 million per year on new 15-year ZREC contracts and $4 million per year on new 15-year LREC contracts, the total value of the annual solicitation is $120 million for ZRECs and $60 million for LRECs.
| Name | Conn. Gen. Stat. § 16-244r et seq. |
|---|---|
| Name | S.B. 1243 (Public Act 11-80) |
| Date Enacted | 07/01/2011 |
| Effective Date | 07/01/2011 |
