Connecticut companies interested in installing a renewable energy system or in making energy efficiency improvements at home can take advantage of various financial incentives. There are solar rebates from the Connecticut Clean Energy Fund, solar and wind production incentives from Mass Energy, property and sales tax exemptions, and energy conservation loans offered by the Connecticut Housing Investment Fund.
Solar rebates
Connecticut companies who want to install a solar photovoltaic system can take advantage of a significant incentive offered through the Connecticut Clean Energy Fund’s rebate program. According to the Connecticut Clean Energy Fund (CCEF), the rebate is based on the design efficiency of your solar system. To obtain the maximum rebate, your system should have an inverter that is 94% efficient or better. There should be no shading on the site, the solar panels should face south, and should be tilted at a 35-degree angle.
Once you decide you want to install a solar system, you should first contact an eligible installer to get a quote on the cost of the system. You can find a list of eligible installers on the CCEF website at www.ctcleanenergy.com under Solar Rebates. The installer sends the paperwork for the rebate to CCEF. Once the application is approved, CCEF sends you a rebate reservation letter. You can then install the solar system. When the installation is complete, the applicable local authorities inspect the system. The utility company inspects the system and authorizes its connection to the grid. CCEF then inspects the system and pays the rebate to the installer. The installer passes the rebate on to you, the customer, as an upfront price reduction.
Mass Energy solar and wind production incentive
When you have a solar photovoltaic or wind energy system installed, you can generate a revenue stream by selling your renewable energy credits at up to $0.03 per kW. The Mass Energy Consumers Alliance buys these credits from small renewable energy generators in New England, packages them together, and sells them to National Grid customers who are interested in purchasing renewable energy through the New England GreenUp program.
You can enter into a three-year contract to sell your renewable energy credits, and the revenue you receive through this program does not affect the benefits you can obtain through net metering. If you are interested, you should contact the Energy Program Associate at Mass Energy indicated on their website at www.massenergy.com.
Property tax exemption
The Database of State Incentives for Renewables & Efficiency points out that renewable energy systems are exempt from property tax in Connecticut. These systems include solar photovoltaic, solar space heating, solar water heating, wind, hydroelectric, biomass, landfill gas, tidal and wave energy, fuel cells, and geothermal heat pumps. Connecticut municipalities can offer a property tax exemption for qualifying heat and power systems. You should file a claim for exemption with your local tax assessor before the first of November in the applicable assessment year.
Sales tax exemption
Solar energy equipment and geothermal heat pumps are exempt from the Connecticut state sales and use tax. The exemption includes the equipment and the installation costs. Energy efficient products are also exempt. As reported in the Database of State Incentives for Renewables & Efficiency, exempt products include compact fluorescent light bulbs, insulation, caulking, weather-stripping, window film, Energy Star windows and doors, water heater blankets, programmable thermostats, Energy Star water heaters, natural gas and propane furnaces and boilers, oil furnaces and boilers that are at least 84% efficient, room air conditioners, room air cleaning units, water coolers, battery chargers, and ice storage cooling systems.
Energy conservation loans
There are several public and private programs to obtain financing for your commercial solar project. If you want to make energy efficiency improvements and need financing, you can obtain an energy conservation loan through the Connecticut Housing Investment Fund for residential projects. Loans are available for insulation, caulking and weather stripping, siding, windows, replacement roofs, heating systems, heat pumps, programmable thermostats, and solar systems.
You can borrow up to $25,000 for a single-family residence, over a term of up to 10 years at below-market interest rates that vary according to your family size and income. You can apply by phone, regular mail, e-mail, or you can download the application form from the Connecticut Housing Investment Fund website at www.chif.org under How to Apply.
Sources:
Connecticut Clean Energy Fund – Power from the Sun: www.ctcleanenergy.com
Connecticut Housing Investment Fund – Energy Conservation Loan Program: www.chif.org
Database of State Incentives for Renewables & Efficiency – Connecticut Homeowner Incentives for Renewables and Efficiency: www.dsireusa.org
Mass Energy Consumers Alliance – Opportunity for Additional Revenue from Your Solar Installation! www.massenergy.com
