You asked for a description of the Clean Energy Fund's Solar Lease Program. You were particularly interested in how the program is funded and how its eligibility criteria are applied.

The program, administered by the Clean Energy Fund in conjunction with CT Solar Leasing, LLC, leases solar photovoltaic (PV) systems to eligible homeowners in the state. The program is funded by a charge on electric bills and does not rely on taxes. Further information on how the fund is supported and operates is available at www. ctcleanenergy. com.

Applicants for the program must submit a copy of the deed to his or her house, homeowner's insurance information, and tax returns and other income documentation. To be eligible for the program, the homeowner must:

1. reside in a 1 to 4 family owner-occupied home,

2. have a household income of 200% or less of their area's median income, and

3. meet the program's credit and debt-to-income qualifications.

The income limit varies by the size of the applicant's household as well as the geographic area. For a two-person household the statewide range is $ 107,040 in the Waterbury area to $ 195,680 in the Stamford Norwalk area (in the Ansonia-Milford area, the limit is $ 137,120). For purposes of the program, a household's income is the amount reported on the federal tax return (form 1040) line 22 for the most recent tax year for all household members. This amount includes wages, interest and dividend income, pensions, and taxable Social Security benefits (benefits that are not taxed do not count towards this limit or the program's debt-to-income calculation). For salaried households, income must be verified by a pay stub from within the past 30 days showing year to date earnings. For fixed income households, income must be verified by a benefits or award statement showing the amount of income and frequency of payment. For self-employed households, income must be verified by filing the first two pages of the most recent federal income tax, plus the Schedule C form if applicable. All households claiming rental income must provide copies of their leases or Schedule E from their most recent federal tax returns.

To be eligible, the applicant must have a FICO credit score of 640 if salaried or on fixed income (pension or Social Security), 680 if self-employed for more than two years, and 720 if self-employed for a shorter period. If the household has several members, the lowest score is used to determine eligibility. In addition, the applicant (1) may not have experienced a bankruptcy, foreclosure, or repossession in the past seven years and (2) may have no more than $ 2,500 in unpaid collection accounts, judgments, and tax liens.

The household's debts (including property taxes and homeowner's insurance if not included in the mortgage) may not exceed 50% of its income. The household's credit score and debt-to-income ratio are reviewed by AFC First Financial Corporation. If AFC determines that an application would not meet the credit and debt to income criteria, AFC will submit the application to CT Solar Leasing and the Clean Energy Fund for approval. Both CT Solar Leasing and the Clean Energy Fund must agree for the application to proceed.

If the application is approved, the PV system must be installed by one of the approximately 20 installers that have been preapproved by the Clean Energy Fund and CT Solar Leasing. The system must meet program eligibility standards (see www. ctsolarlease. com/info/eligible. php). The installer is paid immediately upon verification of a satisfactory installation inspection by the Clean Energy Fund and authorization by the homeowner. There is no downpayment and the monthly payment for a 5 kilowatt system (the size needed to serve a typical single-family home) is $ 120.

At the end of the 15-year lease, the homeowner can buy the system at its then current value; extend the lease for another 5 years at a significantly reduced monthly rate; or remove the system (at the homeowner's expense) and return it to CT Solar Leasing with no future obligation.

Further information about the solar lease program is available at www. ctsolarlease. com/.

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