Connecticut Solar Rebates and Incentives
Connecticut, the Nutmeg State, has long been a seaport, and is the wealthiest state in terms of per capita income. Overall, it’s the third smallest state. It’s larger only than Hawaii and neighboring Rhode Island. However, with 3.5 million residents, it’s the 29th most populous state and the fourth most densely populated state. Despite being small, the state offers some big incentives to residents and businesses that install solar and other renewable energy sources.
Utilities in the state and the state itself offer home and businessowners numerous incentives to add solar to their homes, including rebates, tax incentives and low-interest rate loans to reduce the up-front cost of solar for potential buyers. In addition to the state incentives listed here, Connecticut residents would be wise to talk with their local utility about other solar incentive programs.
About half of Connecticut gets an average of slightly less than 4.5 hours of direct sunlight per square meter on a daily basis, with the rest getting up to 4.35 hours of direct sunlight per square meter on a daily basis. While its nothing like the sun that hits Arizona or other southwestern states, its still more than enough to justify solar. That’s slightly more than New York State gets on average. The state also is rich in other resources, particularly wind along the southern-facing, Atlantic coast. And the coast also has the potential for offshore tidal generation.
The overall electricity production market in Connecticut is dominated by two forms of energy production, natural gas and nuclear.
Despite, its size, location and lower levels of direct sunlight than some other states, the state was in the top ten in terms of solar capacity generation as recently as 2008, according to the administration. That’s partly because the state has numerous incentives to help residents buy and install solar on their homes.
Legislation in the state should make sure that the amount of installed renewables will increase drastically over the next decade. For instance, the state’s renewable portfolio standard requires that 27 percent of electricity comes from renewable sources by 2020. Of that, 20 percent must come from “Class I” renewable energy sources, including solar, wind, tidal and other technologies.
Solar Rebate and Incentive Programs
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CCEF Solar PV Rebate Program
Program Type Rebate Technologies Photovoltaics Amount $1.75 per watt for first 5 kW, $1.25 per watt for next 5 kW. Up to $15,000 Required Documentation Rebate approval must be approved before installation begins Official Web Site http://www.ctcleanenergy.com/default.aspx?tabid=68 Since 2004 CCEF has offered rebates to residential customers that choose to install PV systems on their homes. As of Nov. 2010, the rebate level is $1.75 per watt for the first 5 kWs installed and $1.25 per watt for next 5 kWs installed. Each house may qualify for up to $15,000 in rebates for a system up to 10 kWs. The payment is further adjusted based on projected system performance. Included in the rebate calculations are site shading, the system’s orientation and tilt, the PV panel chosen and inverter efficiency.
The system must be installed by a state-approved installer who also will coordinate applying for the homeowner’s rebate. The approved rebate is applied directly to the cost of purchasing and installing the system and is applied to the purchaser’s bill.
Applicants for the rebate may apply for the CT Solar Lease. But eligibility for this program is not restricted to those who make no more than 200 percent of the median income in the region.As of Oct. 2010, the program had $1.3 million in funds reserved for rebates, out of $3 million committed.
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Connecticut Net Metering
Program Type Net Metering Technologies Photovoltaic, Solar Thermal Electric, Other renewables Amount Net excess generation (NEG) credited forward on customer’s next energy bill at retail rate Required Documentation Interconnection Agreement Official Web Site http://www.ctenergyinfo.com/dpuc_net_metering.htm Both of Connecticut’s investor-owned utilities, Connecticut Light and Power Co. and United Illuminating Co, are required to offer net metering to customers with “Class I” renewable energy sources up to 2 megwatts in size. Class I renewable generation includes solar, wind, landfill gas, sustainable biomass, ocean-thermal power, wave or tidal power and more.
Under laws enacted in 2007, customers were able to rollover their NEG at their retail rate and apply it toward their usage in future months. They can rollover the generation for a period of up to 12 months. At that time the utility will reimburse them for any overall excess generation at the utility’s avoided cost rate or the time-of-use generation rate.
To be eligible, the customer must sign an interconnection agreement with the utility. And while they are not charged for any electricity generated by the system, the customer is still charged regular customer fees on a monthly basis.
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CT Solar Leasing Program
Program Type State-sponsored Leasing Program Technologies Photovoltaics Amount Up to 10 kilowatts PV systems with an estimated cost of $86,000. 15 year lease agreement with
monthly payments of $241, less for smaller systems
Required Documentation Rebate approval under the CCEF (Connecticut Clean Energy Fund) Solar Rebate Program Official Web Site http://www.ctsolarlease.com Under the CT Solar Lease program, homeowners may lease a PV system up to 10 kWs for a period of up to 20 years. The state said that most systems will have a monthly lease payment of about $150. Applicants lease the system from CCEF for an initial 15-year period, with an option to either purchase the system at the end of the period, or lease it for another five years at a discounted rate. Lessees may opt to purchase the system at its market value at any time and at the end of either the 15 year lease or the five year extention. At the end of the 15 year and 20 year periods, the homeowner may also opt to sell the system back to the lessor.
The CCEF is investing $38.6 million in this program and plans to support up to 900 PV installations through the program. The program is financed by a non-bank subsidairy of U.S. Bancorp. called CT Solar Leasing, LLC.
The lease program is offered concurrently with the state’s solar rebate program and enrollees must also be registered for the CCEF rebate. To be eligible, homes for one to four families must not have a household income greater than 200 percent of the region’s median household income. The systems also must be installed by an eligible PV installer.
Under the program’s conditions the homeowner is responsible for maintenance and insurance over the life of the lease. But the installer must warranty the system for the first five years and the equipment must have their own manufacturer warrantees.
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Connecticut Solar Power Financial Incentives
Financial Incentives
Industry Recruitment/Support
Leasing/Lease Purchase
Property Tax Exemption
Sales Tax Exemption
- Sales and Use Tax Exemption for Energy-Efficient Products
- Sales and Use Tax Exemption for Solar and Geothermal Systems
State Grant Program
- CCEF - Community Innovations Grant Program
- CCEF - On-Site Renewable DG Program
- CCEF - Project 150 Initiative
State Loan Program
State Rebate Program
- CCEF - Affordable Housing Initiative Solar PV Rebate Program
- CCEF - Solar PV Rebate Program
- Connecticut Energy Efficiency Incentive Program
- Furnace and Boiler Replacement Rebate Program
Utility Grant Program
Utility Loan Program
- Connecticut Light & Power - Small Business Energy Advantage Program
- Connecticut Light & Power - Small Industrial and Commercial Energy Efficiency Loan Program
- Norwich Public Utilities - Zero Percent Financing Program
- The United Illuminating Company - Small Business Energy Advantage Program
Utility Rebate Program
- Connecticut Light & Power - Commercial Energy Efficiency Rebates
- Connecticut Light & Power - Energy Opportunities Efficiency Program
- Connecticut Light & Power - Operation and Maintenance Program
- Connecticut Light & Power - Small Business Energy Advantage Program
- Groton Utilities - Commercial & Industrial Energy Efficiency Rebate Programs
- Groton Utilities - Residential Energy Efficiency Rebate Program
- Norwich Public Utilities - Commercial Energy Efficiency Rebate Program
- Norwich Public Utilities - Residential Energy Efficiency Rebate Program
- The United Illuminating Company - Cool Choice Commercial Energy Efficiency Rebate Program
- The United Illuminating Company - Energy Conscious Blueprint Rebate Program
- The United Illuminating Company - Energy Opportunities Program
- The United Illuminating Company - Express Lighting Rebate Program
- The United Illuminating Company - MotorUp Commercial Rebate Program
- The United Illuminating Company - Small Business Energy Advantage Program
Rules, Regulations & Policies
Appliance/Equipment Efficiency Standards
Building Energy Code
Contractor Licensing
Energy Standards for Public Buildings
Generation Disclosure
Green Power Purchasing/Aggregation
- Connecticut - Green Power Purchase Plan
- Connecticut Municipalities - SmartPower 20% by 2010 Campaign
Interconnection
Net Metering
Public Benefits Fund
Renewables Portfolio Standard
Related Programs & Initiatives
Alternative Fuels and Advanced Vehicles Data Center
The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.
Weatherization Assistance Program
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.
