Solar Power Rebates, Tax Credits and Solar Panel Incentives in Connecticut; 2012 Update
Connecticut has a very good overall package of rebates and incentives that make the decision to go solar a no brainer in many circumstances. A combination of the Federal Tax break and Renewable Portfolio Standard combine to create the right conditions to encourage the use of solar power systems.
Connecticut's RPS or Renewable Portfolio Standard
Under Connecticut's Renewable Portfolio Standard Act ("RPS"); targets have been set at 23% of electricity production to come from renewable energy by 2020. This is the reason why rebates and incentives are being offered by utilities companies, and why the government has funded the rebates available to Connecticut residents, to ensure that these targets are met. To help your understanding we distinguish the rebates and incentives available for solar electricity panels into incentives that reduce the up-front cost and incentives that increase the income and savings from the system over time.
Federal Tax Credit
A significant financial incentive for your solar power system in Connecticut is the same Federal Tax Credit that applies right across the USA. This gives you a credit on your Federal Tax bill equivalent to 30% of the cost of your solar system For more information on this visit out page "The 30% federal tax credit for residential solar power systems" Because this is a tax credit you get the benefit of this when you do your next federal tax return, rather than getting a cheque on the day of installation. Still, it has a real value if you are in a position where you are paying annual federal income tax equivalent to 30% or more of the value of your solar system.
Connecticut State Rebates
Connecticut has an extensive state rebate program the Clean Energy Finance Authority (CEFIA) has a mandate to create 30 new megawatts of residential solar by the end of 2022. As such there are now rebates available to residents who wish to install solar power. The various state Utilities all offer rebate programs and residents need to check with their local electricity utility to see what rebates or incentives are available to them. The quickest way to find out what is going on in your area is to get some quotes from local solar installers.
Connecticut's two investor-owned utilities -- Connecticut Light and Power Company (CL&P) and United Illuminating Company (UI) -- are required to provide net metering to customers. There is no stated limit on the aggregate capacity of net-metered systems in a utility's service territory. Any customer net excess generation (NEG) during a monthly billing period is carried over to the following month as a kilowatt-hour (kWh) credit. At the end of an annualized period, the utility pays the customer for any remaining NEG at the utility's avoided-cost rate. The Net Metering system in Connecticut is a great incentive for those who want to install solar power.
Connecticut Solar Incentives and investment case: Summary April 2012
Connecticut has a very good overall package of incentives to help meet its solar targets. One of the biggest factors in deciding if you should go solar in Connecticut is the price of power, its expensive and its going to get more expensive. It's our opinion that a solar power system for your home in Connecticut is a financial no brainer.