Connecticut residential solar energy incentives

Property tax exemption for renewable energy systems

Property tax exemptions are available for renewable energy systems.

These include solar, wind, landfill gas, biomass, hydroelectric, geothermal systems and fuel cells.

Renewable energy systems quality for 100% tax exemption.

Systems must be "Class I".

Sales and use tax exemption for solar and geothermal systems

Equipment relating to qualifying system as well as cost and services of installation are eligible for 100% sales and use tax exemption.

The exemption has no expiration date.

Connecticut Housing Investment Fund, Inc. (CHIF) – Energy conservation loan

These loans are available to single families to be used for energy conservation improvements.

Qualifying applicants must meet income limits for family size and location.

Loan amounts for single family residences start at $400 and go up to $25,000.

Interest rates vary according to family size and income

Loans have a repayment period of ten years.

Connecticut Clean Energy Fund (CCEF) - Solar PV rebate program

This rebate program is available to residential customers within service territories of United Illuminating Company or Connecticut Light and Power with grid-connected photovoltaic systems.

Rebates begin at $1.75 per kilowatt for the first five kilowatts and decreases to $1.25 per kilowatt for the next five kilowatts.

Payments may be adjusted based on expected system performance.

Eligible systems can not be over 10 kilowatts, inverters and installation must carry a minimum 5 year warranty and PV panels must carry a minimum 20 year warranty.

Maximum incentive amount for residential systems is $15,000.

CT solar lease

Through CT solar lease, homeowners can lease a photovoltaic system with fixed monthly payments for a 20 year period.

Homeowners who lease a PV system are responsible for all repairs and maintenance during this period.

All energy generated by a leased PV system reduces the homeowner’s electric bill.

The homeowner may purchase the system at the end of the 15th year at a reduced price.

After 15 years, the homeowner may either extend the lease for another 5 years or have the system removed at their expense.

Net-metering

Net-metering is available to customers of United Illuminating Company and Connecticut Light and Power that generate electricity using "Class I" renewable-energy resources.

Systems capacity limit is 2 MW.

Any net excess generation produced by the customer during a monthly billing period will be carried over to the following month as a credit.

Residential Renewable Energy Tax Credit

This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.

Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.

The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.

This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential Energy Conservation Subsidy Exclusion

This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.

The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.

Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-Efficient Mortgages

This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.