In 2014, the Connecticut Green Bank released the second edition of its CT Solar Lease program in an attempt to create an accessible financing solution for independent local contractors to support the rising demand for residential and commercial solar systems.
This case study focuses on the residential side of the solar-lease program. The program combined public funds and private capital to finance residential solar projects and solar water heaters.
CT Solar Lease 2 stemmed from a response to a gap in the market that was clearly felt by both contractors and homeowners—especially since the successful execution of CT Solar Lease 1. Over the span of two years, the new program financed 1,192 residential solar PV projects—amounting to over $43 million in investment and 9.5 MW of solar installations.
The program experienced extremely high demand. It was well-received by both homeowners and contractors.
This case delves into the financing structure of the program and presents the lessons learned from implementation challenges.