Connecticut Clean Tech Fund Launched

The Solar Lease Program in CT is a boondoggle for the partner bank that has through inappropriate miss allocations of the publics' money stripped the rebate program of its ability to promote solar in a meaningful way in CT. Expect professionals to start looking to other states with competent leadership as the solar industry in CT has been hijacked by special interests.

Erik,

Can you be more specific? What do you mean when you say that the Solar Lease Program can no longer promote solar in a meaningful way? What happened?

Mr. Anderson,
How can this solar energy lease program that allows families (and real estate investors with 2 to 4 rental units) that have a family income of (generally) less than $120,000./year be more expensive to employ and maintain for 15-20 years than their private investment of purchasing an appropriately designed PV system for their residence, which would require significantly greater upfront investment and higher overall cost of ownership even after state and manufacturer rebates and the federal tax credit without a monetary cap?
Even after deducting these incentives and the 30% fed tax credit, doesn't this solar lease program offer the average homeowner a significantly lower cost to enjoy solar electric benefits?
Please advise how the math you are referring to is better. Thank you sir.

I believe that the math will show that the monthly savings in energy, that is normally paid to the utility, will still be larger than the monthly lease payment, therefore the home owner will recognize little to no savings. Yes, the cost per kW will rise over time and towards the end of the lease there will be a savings, but after 15 years, the home owner must either buy the system, at 30% of fair market (based on the unsubsidized original cost) or pay a licensed installer to remove and return it.

I figure the home owner will save $5k to $6k in energy costs after 15 years and have to pay at least this amount to own the system or $3k or more to have it removed.

So, what is the incentive to participate?

The finances of the original program would have allowed the home owner to borrow the money, pay off the loan and own the system within 10 years with the monthly service of the loan approximating the electrical savings. Once the system was paid back, the owner had another 15 years of savings.

As stated, this program was created to 'cover' the lack of real funds to support solar in CT.

the typical solar install in CT is 5kw, which a lease payment for is $120 (at its best, which can in crease depending on your personal qualifications and credit situation) which is $1440 a year for your lease payments.
A 5kW system ( which you must remember is a STC rating, which is a peak performance rating of a specific panel in a lab conditions). You never see the STC performance of a solar panel in the real world, that is why there is also a PTC rating which is a more real to life estimate of power production.
If you used your 5kW lease system in a lab you would make you would produce 7,665 kW hours a year (assuming the indsutry standard of 4.2 sun hours a day in CT). At roughly $0.20 per kWH in CT this translates into an annual savings in electricity of $1,533 a year (but that offset will only be seen in the lab when the system is running at it's completely optimal potential, which will not happen in the real world).
So as i stated, in almost all situation, you will pay more over the year for your solar lease that you would otherwise pay for the electricity provided by the solar system.
Also, during and after the previous 8-12 year pay back on a return on investment, during which you produced free power, you own your own system since day one.
With the solar lease program, the CCEF owns your equipment, which you are required to maintain and pay for through automatic deduction from your checking account. This mean that when you sell your home, the prospective owner must be qualified by the bank and CCEF or you have to remove the system, but must hire an installation company, and pay them to the tune of around $3,000 out of your pocket for removal of the system.
Plus should we really be promoting borrowing in these economic time by people that are probably more concerned with keeping their jobs, paying for medicine for the family and feeding their children????

Mr. Anderson, thank you for your enlightenment.

Aside from the already mentioned issues with the $$$, I'm upset with CCEF for disqualifying CSP (concentrating solar power).

We could generate power for a fraction of the cost of PV, but since out 'technology' is not recognized as being on the approved list... we're out in the cold.

The Light is Green!

I felt compelled to respond to the comments regarding the CT Solar Lease program. I also want to fully disclose that I was involved in the development of, and remain involved in the management of, CT Solar.

That said, many of the statements about the origin of the leasing company, the lease economics and CCEF's mission made by Mr. Anderson are not factually accurate.

Anyone interested in learning more about the mission of the CT Clean Energy Fund should contact them at www.ctcleanenergy.com.

Anyone interested in getting a more comprehensive and accurate understanding of the CT Solar lease program, including how it is a long term, affordable solar value proposition for qualifying participants, please feel free to contact me at the email or number provided below.

Adam Stern
The Gemstone Group
ajstern@thegemstonegroup.com
610.293.2507

The CT Solar Lease program is good, but try to sell it. The main objection I see is the "fair market value" that the consumer can buy the system for at the end of the lease. This value needs to be definitive. In this day of uncertainty how can anyone convince a customer to trust that the bank won't be charging an extraordinary amount for the system at the end of the lease?

Regards,
Dave

I strongly encourage all CT residence and Renewable energy advocates who have been following this debate to visit www.ctinnovations.com, www.ctcleanenergy.com and www.ctsolarlease.com and make up your own minds on the status of our rebate program and money.

In an effort to state my case and opinions accurately and factually, i would like to retract the statement i made about the CCEF "re-allocating" money for the solar lease program.
It is clearly stated in their public meeting hearings reports that they had allocated a certain amount of money for the CT Solar lease program as well as for numerous other project types.
I apologize for implying that the CCEF was in anyway shape or form stealing or reallocating money, however, as a private citizen of CT who pays into the CCEF fund on every UI bill i pay, my opinion of the solar lease program remains the same.
While the funding for the Solar Lease program was allocated with all due process and public discussion, i do not feel that it is the best use for the money, nor do i feel it is a beneficial program for the targeted demographic.