DPUC - Capital Grants for Customer-Side Distributed Resources

May 12, 2009

Summary

Connecticut offers grants to retail end-use customers of electric distribution companies for the installation of customer-side distributed resources. Customer-side distributed resources are defined 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 took effect in March 2006. Eligible baseload distributed generation (DG) projects will receive an award of $450 per kilowatt (kW). Electric distribution companies will purchase excess generation from the projects at the company's non-firm tariff rate. Renewable-energy projects are generally eligible, but they may receive more funding via programs administered by the Connecticut Clean Energy Fund (CCEF). Awards for conservation and load-management projects will be determined on a case-by-case basis; interested applicants for these projects should contact Connecticut Light and Power (CL&P) or United Illuminating (UI). The following conditions apply:

• There is no minimum project size.
• The customer-generator must have submitted a completed interconnection application to the electric distribution company after July 21, 2005.
• New or incremental capacity is eligible for grants. Existing capacity is not eligible.
• Gas air conditioning and gas chillers are not eligible.
• Projects that receive funding from the Connecticut Energy Efficiency Fund or from the CCEF are eligible, but the total grant may not exceed the amounts listed above.

A grant payment will be issued to the customer-generator after (1) the Department of Public Utility Control receives security equal to 50% of the grant amount; (2) the DPUC receives an affidavit that the project has completed final acceptance of the applicable interconnection process, including satisfactory commissioning test; and (3) the project is operational.