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Last DSIRE Review: 01/22/2009 | Incentive Type: | Leasing/Lease Purchase | | Eligible Renewable/Other Technologies: | Photovoltaics | | Applicable Sectors: | Residential, Multi-Family Residential | | Lease Terms: | Maximum 20-year term (with five-year optional renewal at the end of 15-year term). Available to owners of one- to four-family homes with a household income up to 200% of the area's median income. | | Website: | http://www.ctsolarlease.com | | Effective Date: | 8/8/2008 | |
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Summary: | | Note: Depending on the cost and efficiency of the leased system, the cost of electricity generated from the leased solar system might initially exceed the cost of conventional electricity. However, the program provides for an effective fixed price of electricity for up to 20 years and the CCEF expects that Connecticut homeowners will experience a significant financial benefit as a result.
CT Solar Lease allows homeowners to lease a photovoltaic (PV) system, with fixed monthly payments, for a term of 20 years. This program, which takes advantage of federal tax credits for solar energy, is available to owners of one- to four-family homes with a household income not greater than 200% of the area's median income. No down-payment is required.
Homeowners may choose an eligible installer to design and price a PV system. All electricity generated by a leased PV system reduces the homeowner's electric bill. At the end of the 15th year, the homeowner may (1) buy the system at a reduced cost, (2) extend the lease for another five years at a reduced monthly payment, or (3) remove the system -- at the homeowner's expense -- and return the system to the program operator. At the end of the full 20 year term, the homeowner would have options (1) and (3) above. If a participating homeowner decides to sell the home, the lease must be assumed by the new homeowner, or the initial homeowner must continue to abide by the terms of the lease.
The homeowner is responsible for paying all repairs and maintenance during the lease, as well as insurance. However, the CT Solar Lease program requires PV installers to warranty labor for the system for five years, and manufacturer warranties are required for the PV modules (20 years) and inverters (five years). The program assumes ownership of the renewable energy credits (RECs) associated with a PV's systems electricity generation. A substantial portion of the value of these RECs will be set aside for the benefit of the homeowner to be used to cover operation and maintenance expenses associated with the system, including inverter replacement as well as the cost to purchase or return the system.
The CCEF, which is investing $38.6 million in this program, aims to support 1,000 PV installations through 2011. CT Solar Leasing, LLC, a non-bank subsidiary of U.S. Bancorp, will finance the purchase and installation of the systems. AFC First Financial Corporation is a partner in the development of CT Solar Lease Program and manages the application and approval processes for residents and handles the lease payments. Gemstone Lease Management, LLC is a partner in the development of the program and manages the day to day operations of CT Solar Leasing, LLC.
See the program web site for more details, to view a list of eligible installers, and to access an application. | |
| Contact: | | Information- CT Solar Lease Program
AFC First Financial
1005 Brookside Road
Great Bear Center
Allentown, PA 18106
Phone: (800) 232-3477
Web site: http://www.ctsolarlease.com | |
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