The Nutmeg State is no longer known just for its huge hedge funds and cute coastal towns, but also as one of the fastest-growing small states for solar. In fact, some of Connecticut’s great solar programs and solar energy incentives could even serve as models for other states that are trying to help their residents make the transition.
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What are CT’s top solar tax credits and rebates?
Connecticut has a plethora of solar programs, including:
Solar rebate programs
Officially known as the Residential Solar Investment Program and administered by the Connecticut Green Bank, this rebate is worth $0.463 per watt of solar installed (up to 10kW). That is, a homeowner who invests in a 5kW system would receive $2,315 right off the bat. How easy is that?
Energy Conservation Loan Program
On top of their solar rebate, the government of Connecticut may also provide you with a low interest loan for your system. Thanks to the Energy Conservation Loan, eligible families can borrow up to $25,000 for 10 years at low interest rates between 0 percent and 6 percent.
Tax exemptions for renewable energy equipment
Thanks to some helpful CT tax breaks for solar, you won’t even have to pay any taxes on your new solar panels. The Sales and Use Tax Exemption for Solar and Geothermal Systems, for example, means that you won’t have to pay any taxes on the purchase of your system. Additionally, the Property Tax Exemption for Renewable Energy Systems keeps you from having to pay any additional taxes on the increased value of your home.
The solar tax credit (ITC)
The federal government also provides some significant incentives to help the Americans go solar. As you may have heard, the federal Investment Tax Credit (ITC), one of the most significant subsidies for solar, was recently extended. This rebate is worth 26 percent of the system cost, and will be deducted from your federal income tax. That said, the ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan like the Energy Conservation Loan), and that you must have enough income for the tax credit to be worthwhile.
Net metering in Connecticut
When you put solar panels on your roof, you want to make sure you get credit for all of the power your system generates. Luckily, Connecticut has a net metering policy that credits you for the extra electricity your system produces, and allows you to use those credits when your system doesn’t generate enough power. Eversource offers the top utility net metering program in Connecticut.