Embrace Solar Power with Connecticut’s Enticing Incentives and Rebates
Electricity rates in Connecticut rank among the highest in the nation, with residential rates ranking 3rd and commercial rates ranking 5th, according to recent statistics from PowerSetter (September 2022). This scenario has prompted many property owners to consider investing in solar energy, not only to reduce their electric bills but also to take advantage of the abundant solar incentives and rebates available within a reasonable timeframe.
Discover how Connecticut’s solar incentives and rebates can benefit you below.
Connecticut’s Robust Renewable Portfolio Standards (RPS)
Connecticut’s strong Renewable Portfolio Standards (RPS) are one of the primary reasons the state is a leader in renewable energy adoption. Utilities face significant fees if they fail to meet these standards. To avoid these penalties, utilities in states with robust RPS often provide solar incentives to encourage property owners to invest in solar panels. Connecticut’s standards required the state to generate 27% of its energy from renewable sources by 2020.
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Net Metering in Connecticut
Connecticut’s net metering laws can significantly benefit property owners in the state. Net metering is a program that connects solar panels or other renewable energy generators to the public utility grid. It allows customers to offset the cost of the electricity they consume from the utility with credits they earn for producing their own electricity. If your system generates more electricity than you consume, the surplus is returned to the utility, and the credit appears on your electricity bill.
Connecticut’s Interconnection Standards
Interconnection standards are rules for connecting solar and other electrical generation systems to the grid, a method of “plugging into” the grid. Connecticut’s straightforward and statewide standards make solar installation easier and usually less expensive, with net metering being more reliable.
Connecticut’s Solar Incentives and Rebates
Connecticut offers excellent solar incentives and rebate programs for solar power systems up to 20kW in size. You can receive the rebate as a lump sum, or your solar installer can deduct it from their bill. Opting for the latter approach often has a significant advantage, as the installer will typically handle the paperwork.
Performance-Based Incentives (PBI) in Connecticut
Fortunately, Connecticut provides Performance-Based Incentives (PBIs), which are solar incentives based on your system’s actual, metered power production. Connecticut refers to them as Solar Power Performance Payments. Your system’s energy production is measured in kilowatt-hours (kWh) or BTUs by a meter, and payments are based on this production. This energy is credited as Solar Renewable Energy Credits (SRECs), and the value of these credits fluctuates based on supply and demand. SRECs can be a beneficial way to reduce the cost of your solar system.
Solar Property Tax Exemption in Connecticut
Connecticut property owners who invest in solar power systems can benefit from property tax exemptions dating back to 1977. After installing the solar system, you can continue paying your previous property tax rate, making the most of this exemption. The value of your property will not be reassessed after installing a solar system.
Sales Tax Exemptions for Solar in Connecticut
In Connecticut, property owners don’t need to pay sales tax when purchasing or installing a solar energy system. Investing in solar panels will grant a property owner a 6.35% savings.
Connecticut’s Energy Efficiency Loan Program
In addition to solar incentives and rebates, Connecticut offers property owners a loan for solar systems. If you qualify for the Smart-E Loan, you can borrow up to $40,000 with 4% to 7% interest rates over 5-12 years.
Inflation Reduction Act (IRA) Benefits for Connecticut Residents
Eligible property owners with solar panels may qualify for a 30% tax credit versus the system cost under the Inflation Reduction Act (IRA).
Don’t Forget the Federal Tax Credit!
Beyond Connecticut’s attractive solar incentives, rebates, and exemptions, property owners may also be eligible for a significant tax credit from the Federal government. You can benefit from a 26% Investment Tax Credit (ITC) by deducting it from your federal income tax based on the cost of your solar system. However, it’s important to note that this credit is only available to those who buy their solar system with cash or a loan, not those who lease. If you decide to lease your solar system, the incentives will go to a third-party owner, making buying a wiser choice than leasing.
Embrace the Benefits of Going Solar
By investing in solar power, you’re not only contributing to a cleaner environment but also gaining numerous advantages and benefits from the solar incentives and rebates offered in Connecticut. We recommend consulting with a reputable solar company to explore all options and make the best decision for your solar investment.
