Connecticut has the fifth least amount of peak sun in the country. If that’s so, you might wonder why homeowners in the Nutmeg State are switching to solar energy. With thousands of people installing a renewable energy system, significant benefits exist to support that decision.
From major tax exemptions to low-income programs for locals, Connecticut has some of the best solar incentives. Wanna know where to start? We break down every type of benefit in the Nutmeg State below.
Ways to Save Money on Solar Panels in Connecticut
With some of the highest utility rates in the United States, Connecticut is making homeowners consider buying solar panels. If you’re hesitant about the solar installation costs, the Nutmeg State also provides incredible benefits at the state level. Below are three common solar incentives come in the state:
- Federal tax credit
- State rebates
- Government regulations
Opportunities to save money in Connecticut abound. Beyond the federal incentive, homeowners in the Nutmeg State can take advantage of equipment discounts, tax exemptions, and more. Let’s go over these in more detail.
Wherever you are in the country, you can take advantage of the federal solar tax credit. The same applies in Connecticut. If your solar panel system qualifies, you can receive 30% back on your federal taxes. In the Nutmeg States, this incentive can reduce installation costs by more than $5,000.
This program lasts until 2032. After that, the credit drops to 26% in 2033 and 22% in 2034. Unless the program is renewed, it’ll terminate in 2035, so don’t wait too long before deciding on the purchase. To apply for the credit, you must own the system outright (for more info, continue reading).
Solar Panels in Connecticut: Credits and Rebates
State credits and rebates are two ways to save money on solar panels. Although Nutmeg State currently does not offer tax credits, they have one of the best rebates in the nation. The state will pay $426 per kilowatt for residential arrays up to 10kW. This means you could receive up to $4,260 back after installation.
Additionally, Connecticut just recycled its net metering program. When you connect your solar panel system to the municipal grid, you can receive a credit on excess power until 2041. While this looks good for the near future, you definitely don’t want to wait. Credits will surely fall off when the program ends.
On another note, the Nutmeg State established a low- and mid-income solar program. The Solar For All Program, sponsored by Connecticut Green Bank, offers major discounts on installations. Over 4,400 families made the switch, providing over 29MW of new solar.
Solar Panels in Connecticut: Government Regulations
Connecticut has one of the country’s most aggressive Renewable Portfolio Standards (RPS). These standards lay out the plan for renewable energy and help us determine the state’s general support. The Nutmeg State plans to generate 35% of its energy from sustainable sources by 2023.
However, this type of support isn’t new in Connecticut. For over 45 years, the state of Connecticut has offered exemptions on both sales and property taxes. Not only will you save money on increased home value, but also keep the price low by not paying for the sale of your equipment. While this will slightly reduce the amount you receive on your federal tax credit, it equals a greater return overall.
Should Locals Lease Solar?
Not many states have leasing options with significant savings. In Connecticut, however, you can see net returns of nearly $60 a month without having to worry about maintenance. This becomes a great option for Connecticuters without the upfront funds for a solar panel system.
On the flip side, a leased array has a list of drawbacks. Firstly, this option won’t increase the value of your home. Additionally, it disqualifies you from taking advantage of several incentives, including the federal solar tax credit. However, if you’re married to the environmental benefits of renewable energy, Connecticut has incredible support. Check out the state’s low and mid-income solar programs for more ways to save below.
Solar Panels in Connecticut: Incentive Summary
|Federal Tax Incentive||30% credit|
|Connecticut Tax Credits / Rebates||None / $426 per kW for up to 10kW|
|Net Metering||The program lasts until 2041|
|Renewable Portfolio Standard||35% by 2023|
|Property Tax Exemption||100%|
|Sales Tax Exemption||100%|
|Performance Payment Program||Low- and mid-income program|
How to Save Money on Solar Panels in Connecticut: Further Reading
With some of the best rebates in the country, solar panels in Connecticut can be surprisingly affordable. However, with multiple programs having a termination date, homeowners should not wait to install a system. For more on renewable energy and technology in Connecticut, continue reading the articles below.
- Owning an EV in Connecticut: Charging Cost, Incentives, and More – Solar energy isn’t the only affordable technology in the Nutmeg State.
- The Largest Tech Companies in Connecticut – from data analytics to audio hardware, Connecticut is the home to much of the country’s prominent technology.
- The 10 Largest Renewable Companies in the World, and What They Do – Whether it’s solar, wind, or geothermal, these organizations want to influence the structure of renewable energy.
The image featured at the top of this post is ©boscorelli/Shutterstock.com.