There are a variety of solar incentives in Connecticut. Residents can take advantage of these incentives, tax credits and rebates to help reduce the cost of solar panel installation and maximize their savings when generating solar power over time.
Federal Solar Tax Credit
The Solar Investment Tax Credit (ITC), otherwise known as the federal solar tax credit, allows any Connecticut citizen who purchases a solar photovoltaic (PV) system to claim the ITC in the same tax year during which they install that system and it begins generating power.
Beginning in 2022, the ITC provides a credit on income taxes that is equal to 30% of your total system system cost. Those who own their solar systems can access this credit through 2032. This means that applying the ITC to your solar system purchase will lower your tax bill for the year.
Net Metering
Connecticut recently revamped its approach to net metering. The Connecticut Residential Renewable Energy Solutions Program is a relatively new state-sponsored initiative that allows solar owners in the state to sell the power they generate with their solar installations.
One way to do so is with the program’s Netting Incentive. By choosing this option, homeowners first supply their homes with power from their solar system, then export any excess power not stored in batteries to the electric grid. Homeowners can also opt for the Buy-All Incentive, in which they export all power they generate to the grid, and then receive a credit to offset their monthly power bills.
Other State-Specific Incentives
Several other state incentives in Connecticut can help make solar power more affordable for residents.
- Connecticut Green Bank Solar for All Program: Offers PPAs to eligible low-income households to allow them to access solar energy at a lower rate.
- Connecticut Green Bank Residential Solar Investment Program: Offers cash rebates and compensation for both solar owners and lessees.
- Connecticut Solar Property Tax Exemption: Prevents solar owners from paying sales tax on the cost of their systems and prevents property taxes from increasing after installation.
- Connecticut Property Assessed Clean Energy (C-PACE): Offers municipality-specific financing services across the state.
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