Connecticut electric rates in residential ranked 3rd while 5th in commercial areas in the United States of America, according to the statistics done by power setter last September 2022. Most property owners considered this scenario to invest in solar energy not just to cut costs in their electric bill but more so with the abundance of solar incentives and rebates they can have in a considerable time.
Find out below what Connecticut solar incentives and rebates can benefit you
Connecticut robust Renewable Portfolio Standards (RPS) are one of the best reasons the state is a leader in renewable energy. If the standards aren’t met, utilities may face significant fees. So, rather than paying the fees, utilities in strong RPS states provide solar incentives for property owners to invest in solar panels. Standards required Connecticut to generate 27% of its energy from renewable sources by 2020.
Net metering laws in Connecticut can benefit property owners significantly in the state. Net metering is a program that connects solar panels or other renewable energy generators to the public utility. It allows customers to offset the cost of the electricity they consume from the utility with credits they earn for producing their 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.
Interconnection standards are rules for connecting solar and other electrical generation systems to the grid, a method of "plugging into" the grid. The standards in Connecticut are straightforward and statewide, which makes solar installation easier and usually less expensive, with net metering being more reliable.
Connecticut offers excellent solar incentives and rebate programs for solar power worthy of systems up to 20kW in size. You can pay the rebate lump sum, or your solar installer can take it off his bill. Usually, opting for the latter approach has a significant advantage in that the installer will typically take care of the paperwork.
Fortunately, Connecticut provides Performance-Based Incentives (PBIs), which are solar incentives based on your system's actual, metered powers. 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 fluctuate based on supply and demand. Solar Renewable Energy Credits (SRECs) can be a beneficial way to reduce the cost of your solar system.
Connecticut property owners who invest in solar power systems can benefit from property tax exemptions dating back to 1977. So continue paying your previous property tax after installing the solar system to make the most of this exemption. The value of your property will not be reassessed after installing a solar system.
In Connecticut, property owners don’t need to pay sales tax to purchase or install a solar energy system. Investing in solar panels will grant a property owner a 6.35% savings.
In addition to the solar incentives and rebates, Connecticut State can offer a property owner a loan for a solar system. If one qualifies with the Smart-E Loan, a property owner can lend up to $40,000 with 4% to 7% interest rates in 5-12 years.
Eligible property owners with solar panels may qualify for a 30% tax credit versus the system cost.
Beyond Connecticut 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 wise choice instead of leasing.
You’re not only giving your share to help the environment, but most importantly, you’ll gain many advantages and benefits from the solar incentives and rebates offered for solar panels. We recommend obtaining advice from a respectable solar company to explore all options best for your solar investment.
EnergyBillCruncher is an unbiased and free online resource created to benefit homeowners. Join our newsletter & stay up-to-date with the latest solar news.