Residential solar is witnessing a remarkable surge in Connecticut, positioning itself as one of the nation’s fastest-growing states for solar adoption, as reported by the Solar Energy Industries Association. Despite solar’s current modest contribution to the state’s energy, the escalating number of installations renders it an increasingly attractive option. Connecticut Solar Incentives become the focal point, guiding those interested in riding the solar wave. The state offers a wide range of state and federal programs, covering everything from tax incentives to net metering.
Connecticut State Solar Tax Credits, Exemptions, and Loan Programs
1. Sales Tax Exemption
Description: Waives sales tax on renewable energy technology purchases.
Eligibility: Technology directly used in renewable energy and clean energy production.
Estimated Value: Equivalent to 6.35% sales tax exemption in Connecticut.
Homeowners can access this by filing a form with the state’s Department of Revenue Services.
2. Property Tax Exemption
Description: Exempts homeowners from property tax increases due to solar installation.
Eligibility: Solar systems installed since 1976, eligibility varies by municipality.
Estimated Value: Depends on home value and local property taxes.
3. Smart-E Loan
Description: No-money-down, low-interest loan for home energy improvements.
Eligibility: Connecticut residents in owner-occupied, 1-4 unit homes and a maximum loan amount is $50,000
Estimated Value: Savings on loan interest amounting to hundreds or thousands of dollars.
4. Norwich Public Utilities Electric Appliance Rebate
Description: Discounts on water heaters, heat pumps, and other appliances.
Eligibility: Customers of Norwich Public Utilities.
Estimated Value: Up to $500.
5. Groton Utilities Rebates
Description: Rebates for insulation, heat pumps, and water heaters.
Eligibility: Customers of Groton Utilities.
Estimated Value: $200 to $5,000.
6. Net Metering
Description: Payment for excess solar energy sent back to the grid.
Eligibility: Requirements specified on Eversource and UI websites.
Estimated Value: Monthly savings on utility bills, based on usage and energy production.
7. Federal Tax Credit
Description: Tax rebate offsetting solar installation costs.
Eligibility: Solar systems installed between now and 2033.
Estimated Value: Up to 30% of the project cost.
Other Local Rebates for Electric Appliances and Energy Efficiency in Connecticut
UI Rebates: UI customers can avail discounts on electric appliances and energy efficiency upgrades.
Eversource Rebates: Connecticut customers of Eversource can receive discounts on energy-saving equipment.
Federal Solar Tax Credits and Incentives for Connecticut Residents
Residents can apply for the federal solar tax credit, covering up to 30% of the cost of a solar installation made between now and 2032. Smaller credits apply to systems installed in 2033 (26%) and 2034 (22%). This program covers various technologies, including solar, water heaters, wind turbines, geothermal heat pumps, fuel cells, and battery storage.
Connecticut Net Metering Rules for Solar Energy
Connecticut allows residents with solar installations to sell extra power back to the utility company through net metering. Two options are available:
Buy-All Incentive: Customers sell all solar energy output to the utility, receiving payment at a rate of $0.3189 per kWh in 2024.
Netting Incentive: Solar energy powers the home first, and excess energy sold to the utility is credited against future energy bills at the current retail rate.
Community Solar Projects in Connecticut
For those unable to install solar on their homes, community solar projects offer an alternative. Connecticut is home to several community solar projects, allowing residents to subscribe to a portion of a solar farm’s output. Eversource customers can subscribe directly, with eligibility based on income and the ability to install solar at home. Automatic enrollment ensures a credit on energy bills.
Embrace the solar revolution in Connecticut, exploring diverse incentives, rebates, and community projects to make clean energy an accessible and affordable reality for all residents.
Source: CNET