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Green Bank adopts FY27 targets and highlights statutorily mandated residential battery pilot
Summary
Board approved FY27 program targets and discussed a conservative revenue forecast, higher operating R&D tied to a legislatively mandated residential energy storage pilot, and a 5% merit pool for staff pay increases.
The Connecticut Green Bank board approved a set of fiscal‑year‑2027 targets and reviewed the operating assumptions that underlie next year’s budget at its June 26 meeting. Eric, lead of the Budget Operations and Compensation Committee, presented program goals including roughly 137 financing projects and about $100 million in capital deployment (approximately $52 million of that from Green Bank committed capital) and an incentive program targeting 605 projects and $33 million of capital deployment.
Eric said, “So we are proposing a set of targets for next year,” and explained staff expects about 10.5 megawatts of capacity from financing programs and 16.5 megawatts of nameplate energy storage capacity from incentives. He told directors the revenue forecast for FY27 is $161 million, up from $157 million last year, but cautioned that about $100 million in federal grants that were not received last year are included again pending a litigation resolution.
Board members pressed staff on operating expense assumptions. Tom asked whether the budget assumptions were “conservative, aggressive, or… just right,” and Eric said the forecasting methodology “errs on the side of us being more conservative.” Eric also explained operating expenses are essentially flat year‑over‑year on the budget but noted there will be a significant R&D increase tied to a legislatively mandated pilot to install residential batteries. “This is a statutorily, mandated pilot,” he said, describing the program’s goal of reducing exports to the grid and thereby lowering net metering costs and the public benefits charge.
On compensation, staff proposed a 5% merit pool (no cost‑of‑living adjustment in the adopted budget). Brian and other board members described the Bank’s historical approach as performance‑driven; Brian said merit pools have typically been used to reward individual performance while earlier COLA adjustments addressed inflation. Several directors voiced differing views on whether incentive compensation might be preferable to straight salary increases.
Next steps: staff will incorporate feedback into the final FY27 materials and provide more granular expense and revenue reconciliations requested by directors. The board moved on to other agenda items after approving the consent agenda and committee recommendations.
