Connecticut suffers from some of the highest electricity costs in the country – and, as one of the highest per-capita income states in the country, its residents have both the motivation and the means to go solar.
Residential solar in Connecticut has also been given a boost by policies that take a cue from the state’s prowess in the finance industry. The Connecticut Green Bank was created in 2011 to stimulate investments in all kinds of clean energy, including a goal of installing 300 MW of solar by 2022. The combination of Green Bank support and Connecticut’s solar regulatory and tax incentives has gotten the state halfway to the goal already, and there’s a good chance these policies can make solar pencil out for you too.
As is the case in most states, Connecticut’s net metering policy is the bedrock for home solar’s value proposition. With net metering, every kilowatt-hour (kWh) your home solar system produces offsets the full retail cost of a kWh purchased from your utility – in other words, generating solar power reduces your monthly utility bill. With Connecticut’s high electricity costs, this regulation means that your energy bill savings can pay off the up-front costs of your solar system in a reasonable period of time – or, if you choose loan or lease financing options, you can skip the up-front cost and start enjoying your savings from your first month.
Residential Solar Investment Program:
Financed via the Green Bank, the Residential Solar Investment Program (RSIP) provides home solar incentives that vary depending on how you decide to go solar and the specific characteristics of your installation.
Owned Solar: If you own your system via a cash purchase or loan, you can receive an up-front payment called an Expected Performance-Based Buydown (EPBB), which is based on the design specifications of your system including size, panel type, tilt, shading, and solar insolation. In most cases, this incentive can currently be worth up to $0.487 per watt – for example, a $2,435 payment for a 5 kW system.
Leased Solar: If you lease your system via a PPA, you instead receive a Performance-Based Incentive (PBI) for the first six years of your solar generation, which is<currently worth $0.039 per kWhin most cases. Unlike the direct, up-front incentive provided by the EPBB, this incentive goes to your PPA provider and is then passed through in the terms of your lease.
Income Tax Credits:
Like many states, Connecticut also offers an exemption from state sales and use taxes as well as property taxes for solar installations, which can provide an extra boost to the economics of your investment. In addition to these tax exemptions, homeowners that go solar via direct purchase or lease are eligible for the federal solar income tax credit equal to 30% of your total installation costs – a major incentive that is available through the end of 2019, after which it steps down in 2020 and 2021 before disappearing altogether.
Finance-Savvy Solar in Connecticut
Just as Connecticut’s savvy solar policies can provide you with incentives whether you choose to own or lease your solar, Trinity offers a variety of solar financing options to help solar make sense for your bottom line. Click through to see how much you can save by going solar – it’s a smart investment for your household budget and for Connecticut’s future.