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Discover the Power of Solar Energy in Connecticut!

Welcome to Connecticut, a state known for its rich history, vibrant seasons, and emerging commitment to renewable energy. Despite its modest size, Connecticut offers significant opportunities for solar power generation, particularly with its clear, sunny days throughout the year. This potential presents an attractive proposition for homeowners and businesses interested in adopting clean, renewable energy sources. With targeted incentives designed to lower the barriers to entry and a community increasingly leaning towards sustainable practices, Connecticut is on the path to a solar-powered future. Learn how leveraging the sun?s energy can light up your home, decrease energy bills, and promote a healthier environment right here in the Constitution State. Join us in embracing the sun?s limitless potential and moving towards a brighter, more sustainable future in Connecticut.

Solar State Incentives

Connecticut State Solar Incentives

Shared Clean Energy Facility (SCEF) Program
Connecticut's Shared Clean Energy Facility program expands access to renewable energy for residents and businesses unable to support individual installations.
Non-Residential Renewable Energy Solutions
Connecticut's Renewable Portfolio Standard and Net Metering policies underwent significant changes in 2018. Existing net metering customers will be grandfathered until 2039, while new customers will experience a shift in policies starting 2022. The Non-Residential Renewable Energy Solutions Program has been implemented to encourage renewable energy use and participation from underserved communities.
Connecticut Green Energy Building Solutions
Connecticut Green Bank provides green energy solutions to various stakeholders including homeowners, building owners, and towns. They offer various programs including no money down loans and rebates for solar installations.
Low-Income Multifamily Energy Loan Program
The LIME Loan offers energy improvement financing for low-income properties in Connecticut, repayable from energy cost savings over 20 years.
Multifamily Navigator Pre-Development Energy Loan Program
Connecticut Green Bank offers an unsecured pre-development loan for energy improvements in multifamily properties, covering 75% of costs for owner-managed projects.
Multifamily Sherpa Pre-Development Energy Loan Program
Connecticut Green Bank partners with New Ecology Inc. to offer Sherpa Pre-Development Energy Loan, a low-risk solution for arranging financing for green energy upgrades in multifamily properties.
The United Illuminating Company - ZREC and LREC Long Term Contracts
Connecticut's Renewables Portfolio Standard includes Zero Emission and Low Emission Renewable Energy Credits, with utilities required to enter into 15-year contracts for these credits.
Local Option - Property Tax Exemption for Renewable Energy Systems
Connecticut allows municipalities to offer up to 15-year property tax exemptions for qualifying cogeneration systems and renewable resources, with some restrictions.
Local Option - Commercial PACE Financing
Connecticut's Commercial Property Assessed Clean Energy (C-PACE) financing enables commercial property owners to finance energy efficiency and clean energy improvements. The financing is repaid via a special property tax assessment over a period of up to 20 years.
Local Option - Building Permit Fee Waivers for Renewable Energy Projects
Connecticut allows municipalities to exempt Class I renewable energy projects from building permit fees. This includes solar, wind, and sustainable biomass facilities.
Local Option - Residential Sustainable Energy Program
In 2010, the FHFA directed Fannie Mae and Freddie Mac against purchasing mortgages with a PACE lien. Connecticut has authorized local governments to establish PACE programs for energy improvements.
Sales and Use Taxes for Items Used in Renewable Energy Industries
Connecticut enacted legislation in 2010 providing sales and use tax exemptions for the renewable energy manufacturing sector, promoting sustainability and affordability.
Sales and Use Tax Exemption for Solar and Geothermal Systems
Connecticut offers a sales and use tax exemption for solar energy and geothermal systems, with no expiry date, under the 2007-enacted H.B. 7432 legislation.
Building Energy Code
The Connecticut Building Inspector enforces building and energy codes, which have been strengthened over time to promote energy efficiency and green building practices. New laws also facilitate residential solar installations.
Energy Efficiency Requirements for State Government
Connecticut's Public Act No. 06-187 mandates green building standards for state facilities, requiring them to exceed LEED Silver rating or equivalent. The Act applies to projects costing $5 million or more, and introduced mandatory efficiency requirements for state-equipment purchases.
Low-Interest Loans for Customer-Side Distributed Resources
Connecticut offers long-term financing for customer-side distributed resources, including electric generation and conservation projects. The program, administered by Banc of America, has a $150 million cap.
Smart-E loans
Connecticut Green Bank's Smart-E Loan program offers low-interest, long-term financing for home energy upgrades, with no down payment or prepayment penalties.
Connecticut Green Power Purchase Plan
Connecticut's governor issued an order in 2004 for state agencies to increase renewable energy use, aiming for 100% by 2050. The state's renewable energy sources include solar, wind, and others.
Interconnection Standards
Connecticut's Public Utilities Regulatory Authority approved interconnection guidelines for distributed energy systems up to 20 MW. Guidelines include application fees and system requirements.
Solar and Wind Contractor Licensing
The Connecticut DCP issues licenses for solar-thermal, solar-electric, and wind-electric work, with specific training and apprenticeship requirements for each license.
Residential Renewable Energy Solutions
Connecticut's Renewable Portfolio Standard and Net Metering policy changes begin January 2022, ending net metering for new customers. Existing customers are grandfathered till 2039.
Residential Renewable Energy Solutions
Connecticut's Renewable Portfolio Standard and Net Metering policies have changed, ending net metering for new customers from 2022 and introducing a new Net-Tariff program. Existing customers will be grandfathered until 2039.
Property Tax Exemption for Renewable Energy Systems
Connecticut offers a property tax exemption for renewable energy systems and hydropower facilities used for private residential use, including zero-emission vehicles and buses.
Energy Conservation Loan
Capital for Change, Inc. offers Energy Efficiency Loans for homeowners, with eligibility and interest rates based on income and family size. The program aims to enhance energy efficiency in homes.
Renewables Portfolio Standard
Connecticut's renewable portfolio standard requires electric suppliers to obtain at least 24% of its retail load from renewable energy by 2020 and 40% by 2030. The standard also includes provisions for energy efficiency and combined heat and power systems.
Connecticut Clean Energy Fund
Connecticut's Clean Energy Fund, managed by the Connecticut Green Bank, aims to promote sustainable energy sources, funded by a surcharge on utility bills. The bank also leverages these funds to attract private investment.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.