Q. What is the CCM Energy Solar/PV Program?
A. CCM has expanded its Energy Purchasing Program to include long-term Power Purchase Agreements (PPAs) for solar photovoltaic projects.
Q. What are the basics of solar photovoltaic projects?
A. Solar development companies design, finance, build, own, and maintain these solar assets at municipal and school sites, e.g., roofs, unobstructed parking lots, etc.
Q. How are the projects financed?
A. Developers rely on two annual revenue streams to make these projects financially workable. The first revenue stream comes from the sale of the power generated by the solar panels through a PPA - a long-term agreement (15 to 20 years) in which you agree to purchase the solar power for a negotiated price per kWh and the solar company agrees to design, build, own, operate, and maintain the project over that term. The second revenue stream comes from the sale of Zero Emission Renewable Energy Credits (ZRECs) and provides between 66% and 75% of overall revenue for the project.
Q. What is the timeline?
A. PA 11-80 requires CL&P and UI to enter into 15 year contracts to purchase ZRECs from the successful solar development companies. The schedule required the utilities to implement the first of these annual bids in May 2012 with an award of ZREC contracts in July 2012.
Q. How do we join? What is the process?
A. Sign a Participation Agreement and submit it together with basic site data to CCM Energy so that we may jointly identify feasible solar sites. We will review your current supply agreement to ensure compatibility with on-site generation; pre-qualify potential solar developers, ask them to vet those potential sites, complete the negotiation of the PPA and submit it to you for your review and approval. The solar companies will need to know enough about the project to inform their ZREC bids in the solicitation process conducted by CL&P and UI. Given the utility companies' solicitation, CCM Energy will conduct its annual competitve procurements every Fall to enable maximum participation by CCM-member municipalities, school districts and local public agencies."
For more information, or to set up an appointment to discuss this program, please contact:
Andrew R. Merola, BEP
CCM Energy & Program Development Manager
Phone: (203) 498-3056
Fax: (203) 562-6314