A $1 billion renewable energy credit program passed by Connecticut’s legislature last year is going into effect.
It will increase the number of renewable energy systems in the state as well as attract companies to locate there.
Its two electric utilities will pay owners of renewable energy systems for up to 15 years. Payments differ for zero emissions sources – solar and wind – and low emissions sources, such as fuel cells and biomass.
Credits begin at $8 million a year for zero emission sources and $20 million for low emissions – they grow each year until $1 billion is spent.
The program is meant to deploy many projects at the lowest cost to ratepayers – it’s based on a bidding process, where competitors offer projects for the least amount of subsidy.
Massachusetts’ SREC program for solar using the same model as do other states, but Connecticut has widened it to renewable energy sources generally.