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 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.