Connecticut Solar Incentive
Structure: Converting a Grant
to a Loan
1
EBPP Grant: State grant can be reduced,
homeowner still receives discount from grid-power
Fed Govt
Installer
$22,515
cash
$8,984
grant
$6,755
ITC
System worth
$31,500 - profit
Homeowner
[11.9 ¢/kWh]
35% discount
on electricity
State
2
Performance Incentive: Incentive to third-party
owners still allows significant discount to homeowners
Third-Party Ownership
in CT Today
Fed Govt
Installer/
Owner
[13.4 ¢/kWh]
$6,755 ITC &
Accel. Dep.
(5.7 ¢/kWh)
14.5 ¢/kWh
PPA
$7,940
grant
($.18/kWh,
6yrs)
System worth
$31,500 - profit
Homeowner
[14.5 ¢/kWh]
20% discount
on electricity
State
3
Hypothetical: Convert incentive to loan, less cost to
state, minimal impact on homeowner, installer
Third-Party Ownership
in CT Hypothetical
Fed Govt
Installer/
Owner
[14.5 ¢/kWh]
$6,755 ITC &
Accel. Dep.
(5.7 ¢/kWh)
16.4¢/kWh
PPA
Loan Worth
$6,042
Convert grant to 10
year, 4% loan, repay
all at maturity
System worth
$31,500 - profit
Homeowner
[16.4 ¢/kWh]
10% discount
on electricity
State
4