Being a considerably solar-friendly state, CT makes it affordable for homeowners to convert to solar energy through various state and federal solar incentives. With this, converting to this renewable form of energy has become a great long-term investment for CT homeowners.
Solar panel installation costs an average CT homeowner about $2.80 per watt, which is higher than the national average. As a resident, it would cost you an average of $21,000 to go solar in the state. So, it is understandable for residents to search for options that could help reduce the upfront cost or justify the investment altogether.
In this article, we discuss some of the incentives and rebate programs that CT offers to its residents and how these programs help to recoup their investments. For more info, visit us at https://homesolarct.com/.
Solar Incentives in CT
As a way to make renewable energy sources more accessible to homeowners in the state, Connecticut established very effective state-funded solar loan programs. With this, CT homeowners can install solar in their homes with no down payments and low-interest rates to help reduce the cost of solar PV systems in the long run.
- Home Energy Solutions Loan Program: This option is more suitable for households with very low income. Although this program isn’t specifically for funding solar equipment, it can be useful for upgrades such as windows, new insulation, and other energy-efficiency upgrades, thereby contributing to the value of your solar system.
- Smart-E loans: Created through a partnership between the CT Green Bank, Energized CT, and local lenders, Smart-E Loans offers a lot of benefits to homeowners to want to finance the installation of their solar system. These options require little initial payment, offer low APR, and prepayments have no penalty.
- Energy Conservation Loan: This loan program helps to finance new constructions and energy-efficiency upgrades that are in line with the home efficiency guidelines of the program. Some of the things these loans can be used to fund include gas water heating, hot water heaters, new insulation, HVAC equipment, and some renewable energy technologies. Energy Conservation Loan is powered by Energized CT.
Federal Solar Tax Credit
This is one of the biggest financial incentives that CT homeowners can benefit from, especially because it is available throughout the state. The Federal Solar Tax Credit is powered by the federal government and it is credited to your federal tax liability. If you do your solar system installation in 2022, you can expect to get 26% of the total cost of your solar system. For example, the average cost of going solar in CT is around $21,000. Based on that percentage, you will be getting about $5,460 on the tax credit.
If you install your solar system in 2023, the incentive will drop to 22% and, unless renewed by Congress, will no longer be available for homeowners in 2024. However, commercial customers will still get 10% credit in 2024.
Sales and Property Tax Exemptions
There are a few tax exemptions that you are offered in CT. One of them is the Sales and Use Tax Exemption for Solar and Geothermal Systems. This ensures that you are exempted from paying sales tax on renewable energy products.
Ideally, the purchase of battery storage options, solar panels, mounting equipment, inverters, installation, and other parts of your solar system all should attract a standard tax rate of 6.35%. However, you are exempted from that sales tax, thereby saving you an average of $1,334 upfront.
In most cases, you have a lot more to gain from the property tax exemption in the long run. The value of your home is increased by the installation of solar panels, thereby increasing your tax-assessed value.
CT Net Metering
If you install solar panels in your home, you will most likely still be connected to the grid, which allows you to pull electricity from the grid when the electricity produced by your solar panels cannot meet up with your needs. This can be expected to happen at night or on cloudy days. With net metering, excess power generated by your panels can be sent to the grid, which then earns you credits.
Your utility company, through their net metering policy, states the compensation plan for every extra kilowatt-hour that’s coming from your solar panel. It is all structured in a way that your electrical bills can be offset or even eliminated.
Public utilities in CT are mandated for net metering. However, you should note that although the program is available to every solar customer, the terms vary among utility providers. So, confirm with your provider before signing any agreement.
Bottom line
When you consider the many incentives and rebate programs that CT offers its residents on solar panel installation, it’s obvious that it is worth the investment. Visit energy.gov to learn more about different Federal incentives and rebates.
