Connecticut Solar Rebates and Incentives

Connecticut Rebates and Incentives Summary

Connecticut

Because Connecticut boasts progressive policies around solar and other renewable energy opportunities, it’s a good place to live if you want to go solar. There are plenty of strong incentives that generate a better-than-average return on investment for the home and business owners who install solar.

Those progressive policies are, in part, responsible for the state more than tripling its installed solar energy capacity between 2012 and 2013. Near the end of 2014, Connecticut had already installed even more solar than it did in 2013.

The Solar Energy Industries Association ranks the state 17th for current installed capacity. But ranked it 15th for most new solar installed in 2013.

Connecticut’s solar rebates, tax benefits and other incentives stand out from other states and will likely continue to drive industry growth.

Connecticut is one of few remaining states that still offer a state rebate for installed solar, retail credits for net metering and a pay out for unused credits at the avoided cost rate at the end of each year. On top of that, the state’s Commercial Property Assessed Clean Energy (C-PACE) financing program is a model for the nation.

(Last updated November, 2014)

Sales Tax Incentive

Program Type

Sales Tax Incentive

Technologies

Solar water heat, solar space heat, photovoltaics, geothermal heat pumps and direct use, other distributed generation technologies, and associated equipment

Amount

 

100% exemption

 

Required Documentation

Cert140 Form

Official Web Site

http://www.ct.gov/drs/lib/drs/forms/2007forms/salesandusetax/cert-140.pdf

 

Under Connecticut’s tax code, certain renewable energy equipment, like solar and geothermal equipment is exempt from sales and use tax. The code also covers passive and active solar water-heating systems, passive and active solar space-heating systems, and solar-electric systems. To qualify for the exemption, purchasers must complete the department’s CERT-140 form. The form must be filled out by the seller at time of purchase. The form can be obtained online, although installers and sellers are likely to have copies available.

CEFIA Performance-Based Rebates

Program Type Rebate
Technologies Photovoltaics
Amount

Customer-owned: For the first 5 kilowatts, $2.275 per watt. For the next 5 kW, up to and including 10 kW, $1.075 per watt. Maximum of $16,750.

Third-party-owned through a lease or power-purchase agreement, $0.30 per kW hour for six years

Required Documentation

An energy assessment must be completed as step one, and must be installed by a CEFIA Approved Contractor.

 

Homeowner must use a CEFIA Approved Contractor to qualify for a rebate.

Official Web Site

http://www.ctcleanenergy.com/YourHome/ResidentialSolarInvestmentProgram/tabid/616/Default.aspx

 

This is currently in its second step. There will be a third step incentive, which will be announced January 15, 2013 or when 2.2 MW of installed capacity is reached. 

Connecticut’s Clean Energy Finance and Investment Authority (CEFIA) introduced its new solar photovoltaics residential investment program in March 2012. The program aims to support a total of 30 megawatts of residential solar photovoltaics. The state allocated $40 million to the program. It is limited to customers of the state’s investor-owned utilities, Connecticut Light & Power and United Illuminating.

 

Both customer-purchased systems and systems owned by third parties under power-purchase agreements and solar leases can qualify for the rebates. Purchasers can qualify for a rebate of $2.275 per watt for system up to 5 kilowatts in size. Systems up to 10 kilowatts in size qualify for a $1.075 per watt rebate. Larger systems can qualify, but the rebate only applies to the first 10 kilowatts. 

Customers who get a system through a third-party qualify for a performance-based incentive of 30 cents per kilowatt hour, which is paid to the third-party based on actual system performance over the first six years of the system’s production. The third-party owner uses the incentive to reduce the cost of the system. 

Either way the system must be installed by a CEFIA-approved installer and have a CEFIA Performance Data Provider approved monitoring system. Customers must also first have a home energy audit then select a contractor from a CEFIA approved list.  The contractor completes all paperwork and application materials online.

Connecticut Net Metering

Program Type Net Metering
Technologies

Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Fuel Cells, Municipal Solid Waste, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels

Amount

Net excess generation (NEG) credited forward on customer’s next energy bill at retail rate. Customers are reimbursed at wholesale rate of avoidence cost.

Required Documentation Interconnection Agreement
Official Web Site http://www.ctenergyinfo.com/dpuc_net_metering.htm

 

Connecticut Light and Power Company and United Illuminating Co., the state’s investor-owned utilities, are required to net-meter customers with "Class I" renewable-energy resources, which include solar, wind, landfill gas, fuel cells, sustainable biomass, ocean-thermal power, wave or tidal power, low-emission advanced renewable-energy conversion technologies, and hydropower facilities up to 2 megawatts in capacity. Under the state regulations customer-generator’s net excess generation (NEG)—any electricity produced in excess of what is used at the site—during a monthly billing period is carried forward as kilowatt-hour (kWh) credits for one year. On March 31 of each year the utility reimburses the customer generators for any overall NEG at the avoided cost of wholesale power. 

The state also now allows municipal customers to virtual net meter, meaning municipalities can generate power via Class 1 renewables at a separate host site. The generation may serve the electricity needs of the municipal host customer and up to 5 additional beneficial accounts.

Connecticut Solar Power Financial Incentives

Financial Incentives


ndustry Recruitment/Support

PACE Financing

Performance-Based Incentive

Property Tax Incentive

Sales Tax Incentive

State Grant Program

State Loan Program

State Rebate Program

Utility Loan Program

Utility Rebate Program



Rules, Regulations & Policies


Appliance/Equipment Efficiency Standards

Building Energy Code

Energy Efficiency Resource Standard

Energy Standards for Public Buildings

Generation Disclosure

Green Power Purchasing

Interconnection

Net Metering

Public Benefits Fund

Renewables Portfolio Standard

Solar/Wind Contractor Licensing

Solar/Wind Permitting Standards

 



Related Programs & Initiatives


Alternative Fuels Data Center
The U.S. Department of Energy's Alternative Fuels Data Center (AFDC) provides information, data and tools to help fleets and other transportation decision-makers find ways to reduce petroleum consumption through the use of alternative and renewable fuels, advanced vehicles, and other fuel-saving measures.

Green Power Network
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.

Wind Powering America
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.

 

(Updated November, 2014)

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