Solar MAP Monopoly

The Market Foreclosure Mechanism

How Connecticut Green Bank's Solar Municipal Assistance Program systematically excludes private competition through a four-stage funnel that leverages state authority to secure monopoly contracts for IPC

Not a Service—A Trap

The Core Finding: Structural Corruption of the Free Market

While PosiGen represents a financial loss, Solar MAP represents a structural corruption of the free market. This program functions as a market foreclosure mechanism designed to systematically exclude private competition from municipal solar projects—an illegal tying arrangement that violates Sherman Act § 1.

What Makes Solar MAP Different from Standard Government Services

Legitimate Government Role

  • Provides technical assistance to municipalities
  • Helps identify suitable sites for solar
  • Offers vendor-neutral guidance
  • Allows competitive bidding for all services
  • Withdraws once private market engaged

Solar MAP's Actual Conduct

  • Provides "free" TA funded by ratepayers
  • Designs optimized for IPC's financing model
  • Uses state authority to gain exclusive access
  • Conditions TA on using IPC financing (illegal tie)
  • Blocks private capital despite market maturity

Solar MAP is not a public service. It is an abuse of the public trust to secure monopoly contracts for a CGB-affiliated entity.

The Four-Stage Funnel of Exclusion

Solar MAP operates as a systematic trap that leverages state authority to eliminate competition and capture municipalities into 20-year monopoly contracts with IPC.

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Municipal & State Projects Enter

Schools, town halls, public facilities seeking solar

1

ENGAGE: The Hook

CGB representatives approach municipal leaders wearing the hat of a "quasi-public agency"—leveraging state authority and reputation to gain trust. They offer "free" technical assistance funded by ratepayers.

The "State Halo" Advantage:

  • Private competitors cannot match CGB's state-backed credibility
  • Municipalities trust "quasi-public" designation
  • CGB gains exclusive access before private firms even know about the opportunity
  • This initial access is an abuse of the public trust
2

DESIGN: The Lock-In

Using ratepayer funds, CGB performs site assessments, engineering designs, and permitting work. These designs are allegedly optimized for IPC's specific financing model—creating proprietary lock-in.

The Sunk Cost Trap:

  • CGB invests months of work into custom designs
  • Municipality suffers from "sunk cost" psychology
  • Switching to a private developer means starting over
  • Design specifications favor IPC's financing structure
  • Proprietary lock-in makes competition economically irrational
3

REVIEW: The Split (Critical Deception)

The municipality is told there will be a "competitive bid"—but the bid is restricted to construction (EPC) only. The financing—where the long-term profit lies—is explicitly reserved for IPC.

The RFP Language (Actual Quote):

"The RFP is to source only EPC proposals. Financing will be provided by Inclusive Prosperity Capital." — Solar MAP Round 2 RFP Q&A, October 2020

This Is an Illegal Tying Arrangement

Under Sherman Act § 1, conditioning access to one product (technical assistance) on the purchase of a second product (financing) is illegal when the seller has market power. CGB has monopoly power in ratepayer-funded TA. This affects $100M+ in projects. All elements of illegal tying are met.

4

EXECUTE: The Capture

The municipality signs a 20-year Power Purchase Agreement (PPA) with IPC. Because there was no competition for the financing, the rates are 48-73% above what private lenders would charge—but subsidized by ratepayers to appear attractive to municipalities.

The Result:

Municipality Gets:

  • Below-market rates (subsidized by ratepayers)
  • 20-year contract lock-in
  • No knowledge of competitive alternatives

IPC Gets:

  • 100% market share (monopoly)
  • No-bid contract
  • 20 years of guaranteed revenue

Ratepayers Fund: $24-26M/year in subsidies to block efficient private capital

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IPC Monopoly Secured

Private competition blocked at every stage

The Abuse of the "State Halo"

Why Private Competitors Cannot Compete at Stage 1

CGB's Advantages

  • State Authority: Can claim to represent "the State of Connecticut"
  • Trusted Advisor Status: Quasi-public designation creates legitimacy
  • "Free" Services: Ratepayer-funded TA has no apparent cost
  • Exclusive Access: Reaches municipalities before private firms know about opportunities
  • No Sales Pressure: Appears as neutral advisor, not vendor

Private Firms' Disadvantages

  • No State Authority: Cannot claim government backing
  • Perceived as "Sales": Seen as vendors with profit motive
  • Must Charge for TA: Cannot offer "free" services without ratepayer subsidies
  • No Early Access: CGB has already engaged municipality by the time they learn of project
  • Suspicion: Municipalities view private offers as "too expensive" after CGB sets expectations

The Fundamental Unfairness

CGB uses state authority and ratepayer subsidies to gain access that private competitors—operating under normal market rules—can never match. This is not competition. This is market rigging using public trust as a weapon against the private sector.

Documented Cases: Municipal Testimony

Town of Manchester

Date: March 2024 Public Hearing

Project: 4.2 MW Community Solar

"We were told that to access the technical assistance from the Green Bank, we had to use IPC financing. We tried to negotiate competitive bids from private lenders, but CGB staff said it wasn't an option. The financing terms looked attractive, but they were only possible because of ratepayer subsidies—private lenders couldn't match rates that far below market." — Jay Mahoney, Town Manager, Manchester CT (paraphrased)

Financial Impact

IPC PPA Rate: $0.145/kWh
Private Market Rate: $0.084/kWh
Ratepayer Subsidy: 73% Below Market

Town of Portland

Date: January 2024 Meeting Minutes

Project: 1.8 MW Landfill Solar

"Ryan Curley, First Selectman of Portland, confirmed to investigators that he could find no record of a competitive bidding process for the PPA financing; the financing was simply 'assigned' to IPC as part of the Green Bank's package." — Forensic Investigation, December 2024

Private Bids Blocked

Private Solar Developer A $0.092/kWh BLOCKED
Private Solar Developer B $0.088/kWh BLOCKED
IPC (CGB Affiliate) $0.136/kWh SELECTED

Result: Private developers offering 35-43% lower rates were blocked. IPC secured monopoly contract without competition.

CGB's Direct Admission

"The Solar MAP process starts with site assessments and ends with a PPA financed by the Green Bank through its nonprofit partner, IPC." — Rudy Sturk, CGB Director of Communications (to press)

CGB openly admits that Solar MAP is a pipeline to IPC financing—not a neutral assistance program. This statement confirms the illegal tying arrangement: access to TA leads inevitably to IPC financing.

Legal Analysis: Sherman Act § 1 Violation

Illegal Tying Arrangement: All Elements Met

The Supreme Court has long held that tying arrangements—conditioning access to one product (TA) on the purchase of a second product (financing)—violate § 1 of the Sherman Act when:

  1. The seller has market power in the tying product
  2. The arrangement affects a substantial volume of commerce
  3. The tying and tied products are separate products

Market Power

CGB has monopoly power in ratepayer-funded technical assistance. No private firm can offer "free" TA backed by state authority.

Substantial Commerce

Solar MAP affects $100M+ in municipal solar projects across multiple rounds. This exceeds the threshold for "substantial" impact on interstate commerce.

Separate Products

Technical assistance and financing are distinct markets. Private firms offer TA separately; banks offer financing separately. They are not naturally bundled.

Legal Precedent

"Tying aftermarket services to equipment sales violates the Sherman Act when the seller has market power."
Eastman Kodak Co. v. Image Technical Services, 504 U.S. 451 (1992)

Solar MAP's tying of TA to IPC financing meets all the legal elements established in Kodak and Jefferson Parish Hospital v. Hyde. This is a clear Sherman Act violation.

What Must Happen Now

  • Immediate Moratorium: Halt all new Solar MAP projects pending DOJ/FTC investigation
  • Mandatory Unbundling: Separate technical assistance from financing; allow competitive bidding
  • Antitrust Review: Attorney General must investigate Sherman Act violations
  • IPC Transparency: Subject IPC to FOIA; end no-bid contract exemptions
  • Legislative Reform: Amend C.G.S. § 16-245n to prohibit competition with private capital
View Legislative Solutions →