Connecticut Residential Solar Incentives

FEDERAL INCENTIVES

Residential Solar Investment Tax Credit

This is a personal federal tax credit for residential installations where a taxpayer may claim a credit of 30% on qualified solar electric expenditures through December 31, 2016. There is no cap on this tax credit through the end of 2016 and the bill allows individual taxpayers to use the credit to offset their Alternative Minimum Tax liability. If the federal tax credit exceeds the tax liability, the excess amount may be carried forward to the next taxable year. The excess credit can be carried forward until 2016, but it is undetermined if the unused tax credit can be carried forward after then.

Energy-Efficient Mortgages

This is a federal loan program where homeowners can use energy-efficient mortgages to finance renewable energy measures, including photovoltaics, in a new or existing home. The federal government insures these loans through the Federal Housing Authority or Veteran Affairs Programs. This allows borrowers who wouldn’t normally qualify for a mortgage to pursue energy improvements.

STATE INCENTIVES

CCEF Solar PV Rebate Program

Rebates are offered to single and multi-family residential customers who have installed grid-tied photovoltaic systems and live in the service territories for United Illuminating Company or Connecticut Light and Power. For the first five kilowatts (0-5 kW PTC), a rebate of $1.75 per kilowatt is given. For the next five kilowatts (5-10 kW PTC), the rebate is reduced to $1.25 per kilowatt. The amount of the rebate can vary based on the expected performance of the system (i.e., PV panel selection, inverter efficiency, system orientation and tilt, and shading on the site). Rebates are not given for generating capacity above 10 kW PTC, so the maximum incentive is capped at $15,000.

Property Tax Exemption

Connecticut offers 100% property exemption for certain renewable energy systems, including photovoltaics, that generate electricity for residential use. An authorized person at the residence must file an exemption claim with the assessor or board of assessors in the town in which the property is located on or before the first day of November in the applicable assessment year.

Sales and Use Tax Exemption

Connecticut provides a 100% sales and use exemption for solar systems, with no expiration date. Both the cost of the equipment and the labor for the installation are eligible for this exemption. Consumers purchasing the solar equipment and services must complete form CERT-140 at the time of purchase and provide that to their solar contractor.

CHIF Energy Conservation Loan

Energy conservation loans are available to single families to be used for energy conservation improvements, including photovoltaics. The loans are available for one- to four-family homes of owners who meet stated income limits for family size and location. Loans for one-family homes range from $400 to $25,000, and may be repaid over 10 years.

UTILITY INCENTIVES

Net Metering

Net metering is open to customers of United Illuminating Company and Connecticut Light and Power that generate photovoltaic electricity. System capacity is capped at 2 MW for all customers. Net metering allows customers to get credit for the full retail value of the electricity their solar electric system generates. Under this agreement, the customer’s electric meter tracks the surplus electricity generated by the solar electric system and the electricity that the customer consumes. The customer is only billed for the net amount of electricity they use.