Low-Interest Loans for Customer-Side Distributed Resources

Program Overview

Implementing Sector State
Category Financial Incentive
State Connecticut
Incentive Type Loan Program
Web Site Connecticut Department of Energy and Environmental Protection
Administrator CT Electric distribution company and Banc of America
Eligible Renewable/Other Technologies
  • Solar Photovoltaics
  • Wind (All)
  • Combined Heat & Power
  • Fuel Cells using Non-Renewable Fuels
  • Wind (Small)
  • Fuel Cells using Renewable Fuels
Eligible Efficiency Technologies
  • Lighting
  • Other EE
Applicable Sectors Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Agricultural, Institutional
Loan Term Fixed interest rate, 1% below the customer's applicable rate not greater than prime rate (actual rate will be determined at time of application), buydown available for 10 years, terms of loan varies

Summary

Long-term financing is available to retail end-use customers for the installation of customer-side distributed resources. Customer-side distributed resources are defined by Conn. Gen. Stat. § 16-1 as “(A) the generation of electricity from a unit with a rating of not more than sixty-five megawatts on the premises of a retail end user within the transmission and distribution system including, but not limited to, fuel cells, photovoltaic systems or small wind turbines, or (B) a reduction in the demand for electricity on the premises of a retail end user in the distribution system through methods of conservation and load management, including, but not limited to, peak reduction systems and demand response systems.” This program, administered by Banc of America Leasing & Capital for the Connecticut Public Utilties Regulatory Authority (PURA), took effect in March 2006. In addition to electric generation projects, other conservation projects that reduce system demand are also eligible for the program. 

The maximum total amount of financing for projects under this program is $150 million. Capital costs and project-development costs are eligible. Interest rates are fixed and will be determined at the time the application is approved by Banc of America. Loans will be collateralized by way of equipment, or other collateral or credit enhancements required by Banc of America.

The following conditions apply:

  • Financing is available for customer-side projects with a minimum capacity of 50 kilowatts (kW) or greater
  • Financing is available to customers of Connecticut Light and Power (CL&P) and United Illuminating (UI) for projects located in these utilities’ service territories.
  • Must be saving electricity (not gas or oil saving measures)
  • If projects received any monies/grants from CT Clean Energy Fund or Conservation Load Management Funds, these monies must be subtracted from the amount subsidized under this loan program. 

To apply for financing, interested companies should work with their electric distribution company to determine project qualification and contact Holly Andreozzi with Banc of America at (617) 434-7760.

 

Authorities

Name Conn. Gen. Stat. § 16-243j
Date Enacted 07/21/2005
Effective Date 07/21/2005

Contact

Holly Anderozzi

 

 

Phone:
(617) 434-7760
E-Mail:
holly.andreozzi@baml.com