OLR Report 2012-R-0307 describes possible funding sources for on-site electric generation for public schools.
Possible funding sources include the zero- and low-emission renewable energy credit (ZREC and LREC) programs, under which electric companies must enter into long-term contracts with customers who install renewable on-site generation. Public schools are eligible to participate in these programs and at least one school submitted an application in the first round of the ZREC program.
The Clean Energy Finance and Investment Authority (CEFIA) has several programs that could support generation projects at schools, including its Clean Energy Communities and Combined Heat and Power (CHP) programs. CEFIA is also developing a renewable energy and efficient energy finance program, which should begin operating by November 2012.
PA 12-148 requires the Department of Energy and Environmental Protection (DEEP) to establish a grant and loan pilot program to support on-site electricity generation. The program will pay for the infrastructure needed to support the generation equipment but not for the equipment itself.
On-site generation equipment is generally not eligible for reimbursement under the school construction grant program if it is installed by itself, but may be eligible if the equipment is part of a new school or the expansion or renovation of an existing school.
As described in OLR Report 2012-R-0178, municipalities can also develop on-site renewable generation for their facilities, including schools, using performance contracting, under which a private party often provides the financing.
For more information, read the full report.
