Clean Energy Communities:How to Make a Municipal Clean Energy Purchase
Bob Wall – Director, Energy Market Initiatives, CT Clean Energy Fund
Clean Energy Regional Workshops 2009
CT Clean Energy Communities
Program Steps:
1. Town commits to the 20% by 2010 Campaign and makes a municipal
town purchase (9% in 2009; 13% in 2010)
2. Town commits to EPA Community Energy Challenge
3. Reach point threshold for local signups to CTCleanEnergyOptions
program and clean energy systems
Reward – earn clean energy systems (e.g., solar PV, solar thermal, wind)
Preliminary Steps
Determine annual municipal electricity use:
Period: Calendar Year, Fiscal Year, Any 12-month period
Include: Town buildings, schools, streetlights
Gather monthly electric bills (DPW, Bd of Ed, Finance) or work with utility account rep
Provide total usage in kWh to CCEF – get free cost estimates
Recommend a line-item in municipal budget
Remember that electricity use varies over time – lowering usage also lowers your clean energy target (and
vice versa)
What Counts?
1. Sign up one or more town facilities with
CTCleanEnergyOptions
2. Purchase Green-e certified Renewable Energy
Certificates (RECs)
3. Install a Class I Renewable Energy System
4. Any combination of the above
Cheshire Town Hall
CTCleanEnergyOptions Contact CCEO Suppliers for Presentation
Community Energy – [email protected]
Sterling Planet –
Pros:
Supports state program
Earns rebates for signups
Supports some local renewables
Carbon claim via RGGI set-aside
Cons:
More expensive than RECs
Green-e Certified RECs Check options on EPA Green Power Partnership site
http://www.epa.gov/grnpower/pubs/gplocator.htm
Pros:
Green-e certified products
Choose resource mix and location
Lower first cost
Rebates may be available from Sterling Planet and Community Energy
Cons:
Potentially less environmental value
Lacks connection with CCEO program
Install Clean Energy Systems Check technologies and incentives on CT Clean Energy Fund site
http://www.ctcleanenergy.com/
Pros:
Return on investment
Truly local resources
Supports development of industry
Creates local jobs
Cons:
High initial capital cost
Limited technology options
Potential siting issues
Essex Recycling Center
Strategy #1: Competitive Supplier
Town switches to competitive supplier for generation service
Use savings to finance clean energy purchase
Example:
Town uses 2 million kWh/year
Town switches from CL&P (gen. svc. chg. – 11.9¢/kWh) to Acme Electric (10.4¢/kWh)
Savings = 1.5¢/kWh or $30,000
Use portion of savings to purchase 9% clean energy (180 RECs at $5-$13 = total cost of $900 to $2,340)
Strategy #2: Energy Efficiency
Town joins EPA Community Energy Challenge and pledges to reduce energy use by 10%
Use savings to finance clean energy purchase
Example:
Town uses 2 million kWh/year
Through conservation & efficiency measures, town reduces use to 1.8 million kWh (i.e., 10% less)
At 16¢/kWh, town saves $32,000
Use portion of savings to purchase 9% clean energy (now only 162 RECs at $5-$13 = total cost of $810 to $2,106)
Strategy #3: CCEO Rebates
Town partners with CCEO Suppliers and gets rebates for local customers it helps to enroll
Use rebates to finance clean energy purchase
Example:
Town uses 2 million kWh/year
Town seeks 9% clean energy purchase (180 RECs at $5-$13 = total cost of $900 to $2,340)
Town gets $20-25 rebate per customer enrolled
Every 50 customers yields rebates of $1,000 - $1,250
Strategy #4: Solar PV Savings
Town would qualify as Clean Energy Community but for its failure to make a town purchase
Use savings from solar PV system to help finance clean energy purchase
Example:
Town would earn a 4 kW solar PV system if it made a 9% CE purchase
PV system would generate ~ 4,800 kWh/year
At 16¢/kWh, town would save $768/year – nearly enough to cover the cost of Green-e certified RECs (i.e., $900 @ $5/REC)
Output also counts towards town’s CE target, thus lowering cost
Building a Bigger System 4kW requires 400 points, which are earned by CCEO signups (1 point all signups) or local clean energy installations (3 points) (note – new solar thermal and geothermal
systems will count)
But you can earn bonuses:
Each 5% household participation earns a bonus 1 kW (does not apply to towns with fewer than 1,000 households)
Designation as an EPA Green Power Community earns 1 kW
And you can combine with other grants:
Use town money to purchase extra kW at lower cost (note – CCEF will not allow EECBG contribution because of add’l costs)
CCEF has funding to support purchase extra kW (50% of cost, up to $8,000)
Strategy #5: Climate Change Action Plan
Town pursues comprehensive Greenhouse Gas Emission reduction strategies
Opportunities include:
Increased conservation, efficiency & renewables
Reduced VMTs in town fleet
Reduced water usage
Increased recycling
High performance buildings for new construction/renovations
Use savings from action steps to help finance clean energy purchase
Additional Resources
Resource Page
Community Forums
Program changes
Town commitment
Signups
EPA Challenge
CIGP
Sustainability
Regional Workshop Page
Web Videos (coming soon)
Custom Collateral
ctcleanenergy.com/communities
CCEF Fuel Cell Programs
On-Site Renewable DG Program $14M (all commercial, industrial & institutional – CI&I)
Open only to CL&P and United Illuminating customers
Federal: ARRA State Energy Program (SEP) $8M (all CI&I)
Open to all Connecticut applicants
Program Rules and Incentives same in both cases: Up to $2,500/kW
Capped at $4,000,000
Middletown High School200 kW Fuel Cell
CCEF Solar Thermal Program
16 kwSolar Hot Water Collectors Solar Photovoltaic Panels
Solar Thermal
Use sunlight to heat domestic hot water
Typical System Components: Solar collectors (flat plate or evacuated tube)
Water tank
Rack, plumbing, valves, pumps, etc.
System Considerations: Demand for DHW (showers, cafeteria)
Building usage (daily, seasonal)
Size to meet 50-80% of DHW needs
CCEF Solar Thermal Program
Federal: ARRA State Energy Program (SEP) $4M for commercial or residential projects
Incentives: Not-for-profit and governmental projects -- $900 per MMBtu of predicted
system output for October through March
Maximum incentive awarded per installation - $82,500
Project Eligibility: Open to all Connecticut applicants
Domestic hot water only (no space heating or pools)
Roof must have 15+ years of life left
CCEF Geothermal Program
Federal: ARRA State Energy Program (SEP) $5M for commercial or residential projects
Program pending CCEF Board approval in late 2009
Incentives: CI&I not-for-profit -- $2,000 per ton of air-conditioning capacity
Maximum incentive for CI&I – 100 tons
Project Eligibility: Open to all Connecticut applicants
The Application ProcessSolar Thermal and Geothermal
Non-competitive, first come, first served
Residential – system owner must be the applicant
Commercial – system owner must be the applicant
Installer’s contract with customer must be for full cost
Incentive Payments made to system owner: 100% when installed as proposed, commissioned and inspected
satisfactorily
Installation variances from application will be subject to incentive
adjustment
Circuit Rider - education & outreach on benefits of and
incentives for high performance schools Contact Bill Leahy/ISE at (860) 465-0252 or
Technical Assistance - grants for feasibility studies for
renewable or sustainable features
Solar PV Grants - funding for PV systems (~25-100 kW),
helps earn LEED points for renewable energy and innovation
High Performance Schools Program
Barnard Magnet School – New Haven
www.ctcleanenergy.com