green bank academy - converting grant to loan

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

2

Installer

State Homeowner [11.9 ¢/kWh]

$8,984 grant

$22,515 cash

System worth $31,500 - profit

Fed Govt

$6,755 ITC

35% discount on electricity

Performance Incentive: Incentive to third-party owners still allows significant discount to homeowners

3

Installer/ Owner

[13.4 ¢/kWh]

State Homeowner

$7,940 grant

($.18/kWh, 6yrs)

14.5 ¢/kWh PPA

System worth $31,500 - profit

Fed Govt

$6,755 ITC & Accel. Dep.

(5.7 ¢/kWh)

20% discount on electricity

Third-Party Ownership in CT Today

Homeowner [14.5 ¢/kWh]

Hypothetical: Convert incentive to loan, less cost to state, minimal impact on homeowner, installer

4

Installer/ Owner

[14.5 ¢/kWh]

State Homeowner

Loan Worth $6,042

16.4¢/kWh PPA

System worth $31,500 - profit

Fed Govt

$6,755 ITC & Accel. Dep.

(5.7 ¢/kWh)

10% discount on electricity

Third-Party Ownership in CT Hypothetical

Homeowner [16.4 ¢/kWh]

Convert grant to 10 year, 4% loan, repay all at maturity