Connecticut Solar Incentives

*Federal & State Tax credits are subject to individual tax liability*

Federal Tax Credit

The Federal Government offers a tax credit that covers 30% of a solar system’s overall cost. The credit is a dollar-for-dollar credit against your personal income taxes. The entire amount can be claimed in one year and it will come back on the following tax return.

Net Metering

Connecticut offers homeowners the choice between two net metering tariffs: Buy-All Tariff and Netting Tariff. Buy-All means the local power company purchases all the electricity produced by your solar panels. The customary tariff is 29.43 cents/kWh, although low-income households get a bonus payment of 3 cents/kWh. The Netting Tariff works like a traditional net metering program. You export only the excess energy that you don’t use, and any unused credits roll over to the next month, and each kilowatt-hour is subtracted from your energy bills at full retail price. If you accumulate power bill credits over a 12-month period, your power company would pay you at the avoided cost.

 

Sales & Use Tax Exemption

Connecticut has a sales and use tax exemption for solar energy equipment and geothermal resource systems. H.B. 7432 added passive and active solar water-heating systems, passive and active solar space-heating systems, and solar-electric systems to the list of exempt technologies. The sales and use exemption covers both the equipment related to eligible systems, and labor (services) relating to the installation of eligible systems.

 

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