Clean energy funds: An overview of state support for renewable energy Page: 4 of 10
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to target their SBC funds towards renewable energy projects and programs. While each state differs, and
many states incorporate elements of each model to some degree, we observe that the fourteen system-
benefits charge programs can be more or less categorized into three different models:
" Investment Model - Using loans, near-equity and equity investments to support renewable energy
companies and projects. The Connecticut Clean Energy Fund has historically epitomized the
investment model category, which could also include Pennsylvania and Massachusetts.
" Project Development Model - Using financial incentives such as production incentives and grants to
directly subsidize and stimulate renewable energy project installation. California is perhaps the best
example of this approach, though numerous other states, including New Jersey, New York, Montana,
Rhode Island, Delaware, and Illinois also follow this model.
" Industry and Infrastructure Development Model - Using business development grants, marketing
support programs, R&D grants, resource assessments, technical assistance, education, and
demonstration projects to build renewable energy industry infrastructure. Wisconsin's program is
indicative of this approach.
Which model a state uses appears to depend in part on the goals of the fund, the size of the fund, the
renewable resource potential of the state, the strength of the in-state renewable energy industry, and the
organization selected to administer the fund. We offer the above categorization with two important
caveats. First, we again note that most funds do not perfectly fit the mold of a particular model; most have
remained at least somewhat flexible in their implementation, perhaps adopting elements of each of the
three models. Second, the models themselves are not mutually exclusive and potentially overlap in
certain areas. For example, one way to develop the renewables industry infrastructure is by investing
seed capital in budding renewable energy companies.
Restricting our attention to only those eight states that have already begun to distribute a significant
amount of funds, Table 3 summarizes the types of programs implemented thus far (programs that are
planned but still under development are not included here).3 As shown:
" Following the "project development" model, the most common type of program involves financial
incentives for the development of new utility-scale renewable energy projects.
" Also popular are buy-downs and competitive solicitations for distributed generation projects (often
PV), with buy-down levels ranging from $1.5/Watt to $6/Watt. To augment these programs,
consumer-financing programs have been developed in three states.
" Four states have directly supported green power marketing in a variety of ways.
" Project or company financing - the hallmark of the "investment" model described earlier - has been
used by two states thus far.
" A variety of industry and infrastructure development activities, including resource assessments,
consumer education, and business development grants, have also been used.
" California and Wisconsin have been the only two states so far to conduct broad-based educational
campaigns.
" Finally, only California has provided support for existing resources, though Illinois has funded the
refurbishment of existing small hydro facilities.
3 We note that this table is not intended to be entirely comprehensive. For example, many states have funded
research studies that do not fall neatly into any of the categories identified in the table.
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Wiser, Ryan; Bolinger, Mark; Milford, Lew; Stoddard, Michael & Porter, Kevin. Clean energy funds: An overview of state support for renewable energy, article, May 1, 2001; Berkeley, California. (https://digital.library.unt.edu/ark:/67531/metadc716091/m1/4/: accessed March 28, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.