L-REC & Z-REC

A few important notes about funding:

Many of these programs require pre-approval before any work is started or you could lose your opportunity for funding.

We have available a Z-Rec and L-Rec incentive program for Solar PV and Fuel Cells. The state will actually pay you annually over approximately 20 years for up to + 40% of the cost of the solar. It is actually like a reverse auction that you have to bid on.

Here are some preliminary details:

As part of Public Act 11-80 signed into law by Gov. Malloy on July 1, 2011, the state of Connecticut directed CL&P and The United Illuminating Company (UI) to launch a 22-year program to promote, fund and expand “behind the meter” renewable generation. “Behind the meter” refers to projects that are located behind the utility’s customer revenue meter.

This LREC/ZREC program is a bidding process for projects to compete to obtain a 15-year revenue stream from the sale of RECs(Renewable Generation Credit) to the electric utilities.

What this means is that the Utility companies will pay you for your renewable energy that is above and beyond what you need for your building. The utility companies sell the renewable energy to other customers. This process helps the utility companies reach the renewable energy requirements created by the state compelling them to obtain at least 23% of their retail load by using renewable energy by January 1, 2020.

What Types of Projects Can Qualify for the LREC/ZREC Program?

The REC can be either zero emissions (ZREC) if it originates from a solar, wind, small hydro or other zero emissions generating source, or low emissions (LREC) if it meets certain measured emissions standards. Fuel cells are a good example of an LREC.

What is an LREC? (For Fuel Cells)

An LREC is a Class I Renewable Energy Certificate from a low-emissions project as defined in Section 110 of Public Act 11-80.

"generation projects that are less than two megawatts in size, located on the customer side of the revenue meter, serve the distribution system of the electric distribution company, and use Class I technologies that have no emissions of no Senate Bill No. 1243 Public Act No. 11-80 225 of 280 more than 0.07 pounds per megawatt-hour of nitrogen oxides, 0.10 pounds per megawatt-hour of carbon monoxide, 0.02 pounds per megawatt-hour of volatile organic compounds, and one grain per one hundred standard cubic feet. The authority may give a preference to contracts for technologies manufactured, researched or developed in the state."

  • LREC-qualified projects are Connecticut generation projects that are located behind company customer meters;
  • achieve commercial operation on or after July 1, 2011;
  • and have emissions of no more than 0.07 pounds per megawatt-hour (MWh) of nitrogen oxides, 0.10 pounds per MWh of carbon monoxide, 0.02 pounds per MWh of volatile organic compounds, and one grain per 100 standard cubic feet.
  • LREC projects must be no larger than 2,000 kW.
  • There will be three annual LREC solicitations with a starting price cap of $200/REC, and the opportunity for two additional annual solicitations if PURA authorizes them. PURA has the option to modify the price cap after the first year’s solicitation.
  • CL&P will have approximately $3.2 million in annual funding for LREC solicitations.
  • Project must not have received a grant from the Clean Energy Finance and Investment Authority (CEFIA), although CEFIA financing is permitted.
  • Generation must be in service after July 1, 2011. The project must be located behind a CL&P revenue meter. Projects must have a dedicated meter to count the energy being produced for the purposes of reporting to the New England Power Pool (NEPOOL) Generation Information System (GIS). This dedicated meter is known as an REC meter.
  • Projects must meet all CL&P Interconnection Guidelines.
  • A participant in a solicitation may not submit more than one bid for a facility (per customer meter) and may not submit bids for both LREC and ZREC solicitations from a facility.
  • If a project is selected for a contract, performance assurance, in the form of a letter of credit or cash, is required and will be returned.

What is a ZREC? (For PV Solar or Wind)

A ZREC is Class I Renewable Energy Certificate from a zero emissions project as defined in Section 107 of Public Act 11-80.

  • ZREC-qualified projects are Connecticut generation projects that are located behind company customer meters;
  • achieve commercial operation on or after July 1, 2011;
  • emit no pollutants.
  • ZREC projects must be no larger than 1,000 kW. Within that limit there will be three project size classes, each with separate funding levels. The three size classes are: up to 100 kW, over 100 kW but less than 250 kW, 250 kW – 1,000 kW.
  • There will be up to six annual ZREC solicitations with a starting price cap of $350/REC; PURA has the option to modify the price cap after the first year’s solicitation.
  • CL&P will have approximately $6.4 million in annual funding for ZREC solicitations.
  • Project must not have received a grant from the Clean Energy Finance and Investment Authority (CEFIA), although CEFIA financing is permitted.
  • Generation must be in service after July 1, 2011. The project must be located behind a CL&P revenue meter. Projects must have a dedicated meter to count the energy being produced for the purposes of reporting to the New England Power Pool (NEPOOL) Generation Information System (GIS). This dedicated meter is known as an REC meter.
  • Projects must meet all CL&P Interconnection Guidelines.
  • A participant in a solicitation may not submit more than one bid for a facility (per customer meter) and may not submit bids for both LREC and ZREC solicitations from a facility.
  • If a project is selected for a contract, performance assurance, in the form of a letter of credit or cash, is required and will be returned.

Terms

15 year standard contract

Class I

  • Solar
  • Wind
  • Fuel Cells
  • Landfill Gas
  • Ocean Power
  • Newer Small Hydro
  • Sustainable Biomass

Class 2

  • Waste-to-energy
  • Older Hydropower
  • Other Biomass

Class 3

  • CHP
  • Energy Efficiency
  • Heat Recovery

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