green bank academy - converting grant to loan
DESCRIPTION
Grants, rebates, and one time subsidies will not be able to support the clean energy market if it is to get to scale. Grants, rebates, and one-time subsides should gradually be converted to green bank loans (or at least work in conjunction with green banks) to help achieve sustainable scale.TRANSCRIPT
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