The U.S. government provides a 30-percent renewable energy tax credit for homeowners who install solar photovoltaic (PV) panels or a solar water heating (solar thermal) system. This solar credit, on its own, will cut your out-of-pocket costs by about a third.

Beyond this, the state of Connecticut provides a number of incentive programs that make it easier to get solar. What follows is an overview of the main financial incentive programs -- those that are most likely to effect your bottom line. (Note: the overview does not cover solar loan options.)

When you're ready to move forward with your project, you may want to consider filling out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your home energy needs, we'll work with our solar panel installation partners serving Connecticut to get you a free site visit and quote. We're here to make sure that you receive quality service and a great price on your solar energy system.

Are you a Connecticut business owner? See our CT commercial solar incentive page.

Rebates

Connecticut Clean Energy Fund (CCEF) Solar Rebate Program

The state finances most of its renewable energy-related programs through the Connecticut Clean Energy Fund (CCEF), which raises funds through a small surcharge levied on all residential and commercial electricity bills. Since its founding in 2000, the CCEF has funded more than $100 million in clean energy projects and related initiatives.

Eligible: Residential systems up to 10 kW in size.

Amount: $1.75 per watt (PTC rating) for first 5 kW; $1.25/watt (PTC) for next 5 kW, adjusted based on expected output performance. Maximum incentive is $15,000 per system.

Other Info: Applicants for this program must participate in the Clean Energy Efficiency Fund's Home Energy Solutions (HES) program in order to qualify. Installers must apply for rebates on the homeowner's behalf.

CCEF Solar Thermal Incentive Program

Eligible: Solar Thermal (solar hot water) systems

Amount: Residential and commercial: $500/MMBtu (predicted output) for October through March
Not-for-profit (and governmental): $900/MMBtu (predicted output) for October through March. Maximum incentive is $3,600 for 3-4 person household, $2,400 for 1-2 person household, and $50,000 for commercial systems.

Tax-Based Incentives

100% Property Tax Exemption for Renewable Energy Systems

Eligible: Residential PV, solar water heating systems, passive space heating, geothermal systems

Amount: 100% exemption from property tax on renewable energy systems. Investing in renewable energy will not increase your tax liability.

100% Sales Tax Exemption for Renewable Energy Systems

Eligible: Residential PV, solar water heating systems, geothermal systems, other distributed generation systems

Amount: 100% exemption from sales tax for the purchase of renewable energy systems.

CT Energy Efficiency Rebates

Taking steps to improve your home's energy efficiency -- in other words, to reduce the amount of electricity you consume -- can dramatically improve the performance of your solar energy system. So if you're thinking about installing solar PV panels, you may want to consider replacing conventional light bulbs with LEDs, for example, or buying energy-efficient appliances. The best part: number of utility- and state-sponsored energy efficiency rebate programs are available to help reduce these costs. Visit the Database of State Incentives for Renewables & Efficiency website for full details.

Net Metering

Connecticut requires that the state's two main investor-owned utilities (IOUs) -- CL&P and UI -- provide net-metering to all customers that generate electricity using "Class I" renewable-energy systems -- like solar PV systems. This means that any net excess generation from your firm's PV system would be credited to the firm's monthly electricity bill at the utility's avoided-cost rate at the end of a 12-month billing cycle.

[Last updated: 7/2/10]

Connecticut: Residential Solar Incentives