Combined Heat and Power Loan Program

Summary

NOTE: Removed from DSIRE per request from Tyler Magnano (tyler.magnano@ctgreenbank.com) 6/6/ 2017

The Connecticut Green Bank previously known as the Clean Energy Finance and Investment Authority (CEFIA) is administering a three year Combined Heat and Power (CHP) Pilot Program. The program offers grants, loans, and PPA options as incentives for development of CHP facilities in the State. The first solicitation of Request for Proposals (RFP) period expired on September 28, 2012.  The second solicitation opened on July 8, 2013 and will close on February 27, 2015. The program is committed in supporting CHP projects that support the State's micro grid initiative, which include CHP facilities for micro-grids that are installed at critical facilities*.

CHP technologies are eligible for either a grant, loan or power purchase incentive under the initial round of solicitations for new renewable energy generating equipment  up to five megawatts at commercial, industrial and institutional facilities. Financial support is intended to help finance the cost of CHP equipment for energy generating projects in the development phase that have not yet commenced the construction phase.

1.     Loan Option: Applicants can apply for a loan terms under CEFIA's contract term of 15-years. Loans shall be arranged with one of business financing partners. The value of loan enhancements is capped at present value of $450/kW of the project.

2.     Grant Option: Grants are awarded up to $450/kW per project

3.     Power Purchase Agreement (PPA) option: CEFIA will pay the project fixed price per kWh for power sold to retail customers for a period of 6 years. Total value of the PPA will be capped at a value of $450/kW for the project.

The level of financing are not based on size or cost, but vary based on the specific technology, efficiency and economics of the installation and will not exceed $450 per kilowatt. The intent of the financial support is to enable CHP project owners to achieve a reasonable “payback” during the life of the project, with a fair and reasonable return on investment, compared with purchasing the equivalent amount of power from the utility.

Please see Program Guideline handbook for more information about the incentive.

* Critical Facilities are defined as a hospital, police station, fire station, water treatment plant, sewage treatment plant, public shelter, correctional facility, production and transmission facilities of a television or radio station, commercial area of a municipality, municipal center, supermarket, or any other area identified by the Department of Energy and Environmental Protection as critical.