Connecticut has ranked in the top ten states for solar policy and incentives. Connecticut's aging and fragile power grid can’t keep up with the increasing electricity demand. Governor Ned Lamont signed an executive order and calls for 100% carbon-free power by 2040.
The United States Federal Government offers the Federal Solar Tax Credit to all states.
The Federal Solar Tax Credit is one of the best available incentives to homeowners. When homeowners buy and install new solar panels with or without battery storage, you will qualify for the 26% federal solar tax credit. The residential ITC drops to 22% in 2023 and ends in 2024. Now is the time to reduce or eliminate your electric bill, as well as increase your home value, and reduce your environmental footprint by going solar.
Renewable Energy Credits RECs
In the state of Connecticut RECs are paid out through your local provider. For example, Eversource Utility offers a REC program worth $.0318 per kWh generated to help lower the cost of leasing or purchasing a solar system.
Net metering allows you to be fully credited for the electricity that your panels contribute to the grid. This means you’ll only be charged for the difference between the amount of electricity you use vs. the electricity produced. This can create a zero or negative electric bill, depending on your particular energy consumption and production. Going solar allows you to have more control over your energy bill and the money you save!
Thanks to some helpful tax breaks in Connecticut, you will not have to pay any sales tax on your new solar panels. Additionally, the Property Tax Exemption for Renewable Energy Systems keeps you from having to pay any additional taxes on the increased value of your home.