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Solar Incentives and Rebates in Connecticut

Peak Sun Hours (PSH): 4.0 - 4.3
Cost of Grid Power: $0.21/kWh
Number Of Installations: 47,535

What’s the Cost of Solar in Connecticut?

Cost of Grid Power

Connecticut electricity prices average $0.21/kWh, more than 50% above the national average of just under $0.14/kWh. Solar accounts for nearly 2% of the state's power generation, more than ¾ of which came from rooftop solar in 2019.

Cost of a Solar Install

Cost of a typical 7.5kW PV install in Connecticut from 2004-2018

A graph of falling prices for a typical 7.5kW PV install in Connecticut from 2004-2018.
Figures include design costs. Data from Berkeley Lab.

The average cost of a 7.5kW (equivalent to saving almost 150 trees a year) solar power system starts around $22,000 in Connecticut. Before any incentives, in the first year you’d save about $1,900, compared to if you had been paying the normal rates for the energy you used. These savings can continue for well over 25 years, improving with inflation.




Just How Much Can I Save With Solar in ___?

This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:

Out-of-Pocket

From our example above, the homeowner purchased a 7.5kW system to offset their energy bill. Overhead cost was $22,000, with a significant proportion returned in the first year through incentives, rebates, and savings, then paying itself in full over 8 years.

Most solar power systems have a warranty lifetime of 25 years. In that time, between incentives and paying lower rates you could make a profit of about $50,000 - more than twice the up-front cost of the system!

Even with occasional maintenance or part replacement, that is a massive savings. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely.

Solar Loan

Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.

Starting with that same 7.5kW system costing $22,000 but with zero up-front cost, accounting for incentives, credits, rebates, and annual energy savings starting around $1,800, you could see a revenue surplus of about $6,500 at the end of the first year.

It's very likely that at first your loan payments will slightly exceed your power savings. Before the term is up, rate increases should mean that you are making a net profit by about halfway into paying off the loan. Once the loan is paid off, you can expect to save about $3,000 a year. Over 25 years you could expect to make about $41,000.

Power Purchase Agreement

With a Power-Purchase Agreement (PPA) the homeowner leases their roof to an outside party, usually a power company. Generally PPAs feature a fixed price per kWh, with either a fixed term or an annual escalator.

With a PPA, the cost of installation, repair, and maintenance to the homeowner is usually $0.00. For that 7.5kW system, with a PPA you could expect to save about $60/month on energy. Over 25 years, you could see NEARLY $20,000 in revenue - without accounting for inflation. That’s technically an infinite return!

PPA’s can be complicated, as you are effectively ceding at least some control of your home to the third party, but they are an excellent way to get into solar because they have no overhead.



What Incentives are Available in Connecticut?

Data from DSIRE. For more info visit: https://www.dsireusa.org/

Name Implementing Sector Program Type Administrator DSIRE ID
Alternative Fueled Vehicle Charging Station Credit State Corporate Tax Credit Connecticut Clean Energy Fund 129
Fuel Mix and Emissions Disclosure State Generation Disclosure 239
Property Tax Exemption for Renewable Energy Systems State Property Tax Incentive Connecticut Department of Revenue Services 240
New Energy Technology Program State Industry Recruitment/Support Connecticut Department of Energy and Environmental Protection 1046
Interconnection Standards State Interconnection 1059
Green Power Purchase Plan State Green Power Purchasing 1078
Sales and Use Tax Exemption for Energy-Efficient Products State Sales Tax Incentive Connecticut Department of Revenue Services 1247
Energy Efficiency Requirements for State Government State Energy Standards for Public Buildings 2390
Sales and Use Tax Exemption for Solar and Geothermal Systems State Sales Tax Incentive Connecticut Department of Revenue Services 2613
Local Option - Property Tax Exemption Cogeneration Systems State Property Tax Incentive Locally administered 2624
Sales and Use Taxes for Items Used in Renewable Energy Industries State Industry Recruitment/Support Connecticut Department of Revenue 4552
Local Option - Building Permit Fee Waivers for Renewable Energy Projects State Solar/Wind Permitting Standards 4958
Residential Solar Investment Program State Rebate Program CT Green Bank 5120
Local Option - Commercial PACE Financing State PACE Financing Connecticut Green Bank 5321
The United Illuminating Company - Small ZREC Tariff Utility Performance-Based Incentive United Illuminating 5358
CT Solar Loan State Loan Program Connecticut Clean Energy Finance and Investment Authority 5405
Local Option - Property Tax Exemption for Renewable Energy Systems State Property Tax Incentive Connecticut Department of Revenue Services 5423
Copy of CT Clean Energy Communities Local Green Power Purchasing 5639
Multifamily Energy Conservation Loan Program State Loan Program 5730
Low Interest Energy Efficiency Loan Program (Electric and Gas) Utility Loan Program 5735
Commercial and Industrial Kitchen Equipment Rebate Program Utility Rebate Program 5737
(Electric and Gas) Residential Rebate Program Utility Rebate Program 5738
(CHIF) Home Energy Solutions Loan Program State Loan Program 5739
Xcel Energy - Express Energy Efficiency Utility Rebate Program 5767
Renewable Energy Investment Fund State Public Benefits Fund 5787
United Illuminating Company - Energy Opportunities Program Utility Energy Analysis United Illuminating Company 13886
U.S. Department of Energy - Industrial Assessment Center (IAC): University of Massachusetts Federal Energy Analysis U.S. Department of Energy 16288
ISO New England - Demand Resources Other Energy Analysis ISO New England Inc. 16290
United Illuminating Company - Business Energy Solutions Utility Energy Analysis United Illuminating Company 16396
United Illuminating Company - Retro-Commissioning (RCx) Utility Energy Analysis United Illuminating Company 16397
Northeast Energy Efficiency Council - Building Operator Certification (BOC) Other Training and Information Northeast Energy Efficiency Council 16501
EnerNOC - Energy Procurement Other Energy Analysis EnerNOC 17229
Southern Connecticut Gas - Energy Conscious Blueprint Program Other Energy Analysis Southern Connecticut Gas 17237
Southern Connecticut Gas - Energy Opportunities Program Other Energy Analysis Southern Connecticut Gas 17238
Southern Connecticut Gas - Operation & Maintenance Program Other Energy Analysis Southern Connecticut Gas 17239
Eversource - Energy Savings Plan Utility Energy Analysis Eversource 21981
Energize Connecticut - Energy Conscious Blueprint Other Energy Analysis Energize Connecticut 21983
Energize Connecticut - Small Business Energy Advantage Other Energy Analysis Energize Connecticut 21985
Northeast Energy Efficiency Partnerships - EM&V Forum Non-Profit Training and Information Northeast Energy Efficiency Partnerships 22025
Multifamily Navigator Pre-Development Energy Loan Program State Loan Program CT Green Bank 22044
Low-Income Multifamily Energy Loan Program State Loan Program CT Green Bank 22045
Zero Interest Energy Efficiency Loan Program (Gas and Electric) Utility Loan Program Eversource Energy, UI, SCG, CNG 22093



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