Renewable Energy Credits (LREC/ZREC Program)
CL&P customers who install new, qualifying renewable energy projects have an opportunity to sell the qualified Connecticut Class I renewable energy credits (RECs) created from their projects to CL&P.
What's the value to me?
If you have installed a renewable energy project and are looking to sell credits to CL&P.
Description & Overview
An Opportunity to Develop Renewable Generation in Connecticut Through the Low Emission Renewable Energy Credit (LREC) and Zero Emission Renewable Energy Credit (ZREC) Program
CL&P customers who install new, qualifying renewable energy projects -- ranging from rooftop solar panels to fuel cells -- now have an opportunity to sell the qualified Connecticut Class I renewable energy credits (RECs) created from their projects to CL&P under a long-term, 15-year contract. This LREC/ZREC program creates a market-driven bidding process for projects to compete to obtain a 15-year revenue stream from the sale of RECs to the electric utilities.
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.
Submit a project proposal on the CL&P website.
- 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.
- 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 after the project goes into service.
- CL&P will select projects either through a competitive solicitation (Request for Proposals) or through a tariff.