Energy Incentive Programs, Connecticut
Updated November 2009
Below you will find questions and answers regarding Connecticut's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
What public-purpose-funded energy efficiency programs are available in my state?
Connecticut's electricity restructuring law provides annual funding for energy efficiency through a non-bypassable surcharge. In 2008, $114 million was available across all program types (including low-income and residential) and this figure is expected to rise considerably in the next few years. These public-purpose-funded energy efficiency programs are administered by the two investor-owned electric utilities, Connecticut Light and Power (CL&P) and United Illuminating (UI).
Both CL&P and UI offer the following programs:
The Energy Conscious Blueprint program offers technical support and pays up to 100% of the incremental cost of energy-efficient equipment and/or energy-saving designs in commercial new construction and major renovation projects. (CL&P; UI)
The Energy Opportunities program offers feasibility studies, zero- or low-interest financing, and/or cash incentives for energy efficiency upgrade projects of up to 50% of total installed cost (30% for lighting projects). (CL&P; UI)
The Small Business Energy Advantage Program offers rebates and zero- or low-interest financing for cost-effective, turnkey energy-saving projects are available to smaller customers (peak demand of 10 to 200 kW). Qualifying projects are eligible for offsets of 25% to 40% of the installation costs, and a 0%, 30-month financing option may be available to cover the remaining costs. (CL&P; UI)
The MotorUp initiative provides rebates for premium efficiency three-phase motors up to 200 horsepower. Rebates range from $45 to $700 depending on horsepower and enclosure type (open or closed). (CL&P; UI)
The Cool Choice program provides rebates for high-efficiency HVAC equipment, including packaged air conditioners, air-to-air heat pump systems, water-source heat pumps, packaged terminal air conditioners, and dual enthalpy economizer controls. (CL&P; UI)
CL&P coordinates the Lighting Rebate Program for both CP&L and United Illuminating. The program provides cash incentives for new efficient lighting in existing buildings.
CL&P offers several other energy efficiency programs that may be of interest:
Through the Vending Machine Rebate Program, CL&P customers can receive a $75 rebate for every soda vending machine retrofitted with an occupancy sensor allowing it to turn off after a set time of inactivity in its surrounding area. Machines must be located in "low activity" areas.
The Operations and Maintenance Services Program includes a utility-provided energy analysis of electricity using systems, such as HVAC, compressed air, and energy management control systems. In addition, any identified upgrades may be eligible for rebates on their installed cost. Training and other outreach may be provided as well.
Groton Utilities also offers energy efficiency programs for its commercial and industrial customers.
What utility energy efficiency programs are available to me?
Energy efficiency programs are outlined in the previous section.
What load management/demand response options are available to me?
Independent System Operator New England (ISO-NE) offers demand response programs that provide payments to electricity users for load reductions (of as little as 100 kW) either by reducing usage or by operating on-site generation during periods of high demand. Customers may participate in the program through any participating member ("Enrolling Participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). The enrolling participant is allowed to aggregate load to reach the quantity qualification limit, so customers interested in these programs with less than 100 kW to offer may want to contact their utility or other eligible party.
ISO-NE offers several options:
The Real-Time Demand Response Program provides customers payments for voluntarily responding to system emergencies. Participants are paid for actual load reductions based on the higher of the real-time zonal price or a guaranteed floor price ($350/MWh for customers that can respond within 2 hours and $500/MWh for those that can respond within 30 minutes). To facilitate notification of emergency events and verification of load curtailments, customers must have an approved Internet-based communication system (IBCS) installed. Participating customers must also have interval metering installed at their facility.
The Real-Time Profile Response Program provides remuneration to customers without interval metering for voluntarily responding to system emergencies. The enrolling participant must have the physical ability to interrupt loads at the customer's facility within 30-minutes notice of a system emergency. Payment for verified load reductions is based on the real-time zonal price with a $100/MWh floor price. Participants may receive additional incentives by qualifying as an ICAP resource for their load reduction capacity, although response to system emergencies then becomes mandatory.
The Real-Time Price Response Program provides customers payments for voluntarily reducing load during periods when the real-time zonal price is projected to be high. ISO-NE will notify participants either the night before or day of an event if the zonal price is expected to exceed $100/MWh ($0.10/kWh). Participants can voluntarily respond to the notification and submit load data to verify their load reductions. Payment for verified load reductions is based on the real-time zonal price with a $100/MWh floor price. Customers must have interval metering installed at their facility to participate in this program.
The Day-Ahead Load Response Program is a more sophisticated variant of the Real-Time Price Response Program. Customers submit offers of hourly load reductions into the day-ahead market and are then notified by their enrolling participant if the offers are accepted. If so, the customer must drop load during the cleared hours, but is remunerated by the greater of its bid or the actual clearing price for those hours. Customers must have interval metering installed at their facility to participate in this program.
ISO-NE's Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities – whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as a back-up generator or demand management actions) – into a forward capacity auction that pits demand-side resources against supply-side resources. These auctions take place periodically for commitment periods several years in the future. For instance, the first auction (for resources whose contribution to the grid must begin on June 1, 2010) took place in February 2008. Future auctions are announced at the FCM Web site. However, in the "transition period" in effect before the first commitment period begins in June 2010, so-called Other Demand Resources (such as energy efficiency, load management, or distributed generation) of at least 100 kW installed after June 2006 are eligible for fixed "installed capacity" payments from ISO-NE. To qualify for these payments, demand resources must participate in either the Real-Time Demand Response Program or the Real-Time Profiled Response Program. The rate of remuneration is $4.05/kW per month in 2009 through 2010. Applications must include a measurement and verification plan to assure ISO-NE of the ability to perform.
In addition to the ISO-NE programs, both CL&P and UI offer load management programs:
CL&P offers a Demand Reduction Program that helps customers identify peak reduction measures and offers financial incentives for qualifying projects that can assist in controlling load during peak periods.
UI offers a Load Response Program through which customers with on-site generation or curtailable loads can receive incentives for agreeing to dispatch these resources when needed.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following programs may of interest to Federal customers:
The On-Site Renewable DG Program administered by the Connecticut Clean Energy Fund (CCEF) offers up to $4.70 per watt, depending on the technology, for new renewable distributed generation installations that provide at least 10 kW of power to commercial, industrial, or institutional buildings. In addition, CCEF will pay the customer $0.03/kWh for all renewable energy certificates (RECs) generated by the new installations (in exchange for taking ownership of these RECs). Also, technical and financial feasibility studies for prospective qualifying projects can be funded up to $50,000. Note that incentives are no longer available for solar photovoltaic systems.
Grants of up to $750,000 from CCEF are available for demonstration installations of innovative technologies under the Operational Demo Program.
The Connecticut Department of Public Utility Control sponsors Capital Grants for Customer-Side Distributed Resources that provide payments of $450/kW for baseload renewable or combined heat and power installations of up to 65 MW. Projects in southwestern Connecticut are eligible for an additional $50/kW incentive.
Are there energy efficiency programs sponsored by the state government?
The Connecticut Energy Efficiency Program, administered by Ameresco, offers cash incentives of $600/kW for energy saving measures in new construction or renovations to existing buildings. Funds are available first-come, first-served and are expected to last through December 2010.
What additional opportunities are available to me?
Federal customers whose utilities have areawide supply contracts through the General Services Administration (GSA) (e.g., Yankee Gas) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. Federal facilities should contact their account executive to determine the level of each utility's participation.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.