The Vermont Public Service Department (PSD) and its Clean Energy Development Fund (CEDF) seek proposals from qualified financial institutions with a physical presence in Windham County that offer loans to residential customers interested in development of the Windham County Solar Finance Program (SF). The SF Program seeks to accelerate the deployment of solar energy technologies including solar PV and solar hot water in Windham County. Applicants should propose how they would use the available funds for a credit enhancement(s) to expand access to private finance for residential solar systems in Windham County. The RFP will offer up to $300,000 to stimulate new or expanded renewable energy lending to homeowners with credit ratings deemed satisfactory by the selected financial institution(s) due to the credit enhancement provided by the CEDF/State of Vermont.
The 2 megawatt Winstanley solar project was completed in Brattleboro in October 2014. (L-R) Mark Bettis, VP of Sales and Marketing for REC Solar, Lieutenant Governor Phil Scott, Adam Winstanley, Principal of Winstanley Enterprises, and Andy Cay, President of Integrated Solar. STORY Courtesy photo.
For the first time, a portion of CEDF funds must be deployed in a certain county. The agreement between the State and Entergy Vermont Yankee, which resulted in the CEDF receiving over $5.3 million in April of 2014, requires at least 50 percent of the funds the CEDF received from Entergy Vermont Yankee to be spent in, or for the benefit of, Windham County. This represents a significant opportunity for Windham County to address the local effects of the closure of the Vermont Yankee power plant as well as the county’s energy and economic future.
The State of Vermont has a goal of meeting 90 percent of energy needs across all sectors from renewable sources by 2050. The Vermont Public Service Department (PSD) and its Clean Energy Development Fund (CEDF) seek to engage one or more financial institutions (FIs) located in Windham County, Vermont to develop the Windham County Solar Finance Program. As part of the fund’s strategy to help meet state goals, the SF Program seeks to accelerate the deployment of residential solar energy technologies in Windham County.
This program will provide an opportunity for one or more private lenders to initiate new—or to expand their existing—lending activities to homeowners in Windham County seeking finance to install residential solar systems. This initiative will help the award recipient(s) gain or increase exposure to the growing solar market, and learn more about how to expand lending for clean energy to serve homeowners in southern Vermont. The intended results include increased rates of investment in solar systems, increased supplies of net-metered renewable power, and greater confidence among financial institutions leading to more participation in this market segment. In addition, increased investment in residential solar technologies will support the growth of jobs and economic opportunity in Windham County, a primary interest of the CEDF under this program.
This RFP intends to help reduce credit risks associated with financing home energy upgrades such as solar PV or solar hot water for Vermonters with diverse socio-economic backgrounds to increase market penetration of solar technologies. To spur participation, the CEDF will support credit enhancements offered by one or more finance institutions selected through this competitive Request for Proposals (RFP) to help them lower their risks while generating performance data for their local market. As lenders gain more experience with solar products, services and vendor arrangements, we expect a transition to self-supporting, cost effective finance in lieu of CEDF incentives.
This program is sponsored by the Vermont Public Service Department, as part of the state’s effort to achieve the goals set forth in the 2011 Comprehensive Energy Plan (CEP), and the Clean Energy Development Fund in accordance with its Five Year Strategic Plan. This initiative is a part of the broader focus on Windham County detailed in the CEDF FY 2015 Annual Program Plan & Budget Allocations report. This program will add a new set of finance options available to consumers interested in solar energy in the southern part of the state.
RFP PROCESS
To develop the Windham County Solar Finance Program, the CEDF will initiate a staged process. First, the CEDF intends to negotiate the lending terms and credit enhancement features of the Solar Finance Program with one or more Financial Institutions (FIs) that respond to this RFP to create a streamlined customer experience for residential solar lending. Second, the CEDF will engage with the chosen financial institution(s) to address key program design considerations such as marketing and evaluation of program effectiveness.
This solicitation is funded with monies from the State of Vermont Public Service Department’s Clean Energy Development Fund. The funding available through this competitive RFP is provided from a payment to PSD from the state’s agreement with Entergy Vermont Yankee. Respondents will be subject to standard state grant making and reporting requirements including, but not limited to, financial reporting, periodic project monitoring, documentation of incurred costs, and access to records. Reporting requirements will include select milestones and metrics documenting loan performance, size and power production of financed installations, and program effectiveness to be established at the time of the award.
Awards for the Windham County Solar Finance Program will be made through this competitive RFP process. Upon completion of the selection process, the CEDF may, at its discretion, enter into a grant agreement with one or more eligible entities to develop the Windham County Solar Finance Program. Terms for distribution of the funds shall be established with the award recipient(s). If included in the successful proposal, administrative and program development costs for approved expenses will be reimbursed subject to standard state procedures.
The CEDF reserves the right to make necessary changes or adjustments to the program design, deadlines, RFP, or to any statements made in this RFP at any time. Further, the CEDF reserves the right to amend, alter, or terminate this Request for Proposal process at any time. Changes to the RFP will be posted on the CEDF website at: http://publicservice.vermont.gov/topics/renewable_energy/cedf . Respondents are encouraged to thoroughly review this RFP.
DEADLINE
Proposals must arrive at the Public Service Department by 4:00 p.m. Eastern Standard Time on Tuesday, December 23, 2014. This RFP is for credit enhancements not to exceed $300,000 to create the Windham County Solar Finance Program. Applicants mailing a proposal should allow adequate time to ensure receipt of their proposal by the deadline. One original signed hard copy, four additional hard copies, and an electronic copy of the proposal (which may be emailed or submitted on CD or USB flash drive) must be delivered to the Vermont Public Service Department. Proposals and questions should be addressed to:
Edward Delhagen
Vermont Public Service Department
112 State Street
Montpelier, VT 05620-2601
Phone: (802) 828-4099
Email: [email protected]
All questions must be submitted in writing via email with the subject line, “Windham County Solar Finance RFP Question” or delivered by U.S. Mail to the address above. Questions regarding the RFP will be accepted until Monday, November 24, 2014. Responses to questions will be posted on the CEDF website at: http://publicservice.vermont.gov/topics/renewable_energy/cedf.
Hard copies and electronic copies of proposals must arrive at the Public Service Department by 4:00 p.m. Eastern Standard Time on Tuesday, December 23, 2014.
Questions regarding the Request for Proposals (RFP) will be accepted until Monday, November 24, 2014. Questions must be submitted in writing via email with the subject line, “Windham County Solar Finance RFP Question” or delivered by U.S. Mail to the address below. Responses will be posted on the CEDF website at: www.publicservice.vermont.gov/topics/renewable_energy/cedf