Make the best decision about investing in solar power in Connecticut
Connecticut, while geographically small, has one of the fastest-growing solar industries in the United States. Much of the success of the Connecticut solar industry is thanks to the Connecticut Property Assessed Clean Energy (C-PACE) program. We'll dive into the benefits of that program and other solar incentives in Connecticut below.
The average price for a home solar panel system in Connecticut is $13,400 or about $2.68 per watt. Systems will vary depending on the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
The average payback period for solar panels in Connecticut is around 9 years years. Your payback period will depend on the cost of your system and the amount of power it generates. The more energy your system generates the faster it will pay for itself.
Everyone has their own method for determining if solar is “worth it”. If your objective is to leverage solar to eliminate or reduce your electric bill you have different expectations of someone who is more interested in reducing their carbon footprint.
To help you determine the best option for you you can use this solar calculator that will weigh different solar options and other renewable energy options.
While the states various solar incentives programs help with the financial viability of solar, there are several other reasons to join into the solar transition.
Solar has roughly 20 times less carbon output than coal-powered energy sources. After three years of use,
solar systems are completely carbon neutral and remain so for the duration of their lifespan.
In short, if you want to reduce your carbon footprint going solar is a great option.
When you have your own solar system you are putting energy back into the grid. Your utility rewards you by
crediting back the value of the energy you put into the grid. For example, if your system generates 2,500
kWh in a month and you use 2,500 kWh in that month you would have a $0 electric bill.
In most cases, if your system generates more energy than you use the credits will roll over to the next month.
With the right solar system, you could potentially have a self-sufficient power system for your home. This
means you don’t have to rely on the grid for energy. If the grid has an outage you could still power your
home with your solar system.
Those who are trying to become energy independent often pair their solar system with a battery. This allows you to store electricity and use it when you need it.
The Residential Solar Investment Program a.k.a "RSIP" is a program from Connecticut Green Bank that makes investing in a solar array more affordable. In short, this program gives a rebate of $0.463 per watt of solar installed for the first 10kW if your system. For example if you purchased a 8kW system you would receive $3,704.
To help more homeowners gain access to solar loans, Connecticut provides lower interest loans for new solar systems. The program allows for loans up to $25,000 with interest rates from 0-6%.
Net metering is a billing mechanism that enables owners of solar panels to sell their excess energy back to the grid in the form of credits. For example, in June your solar panels generate 1,000 kilowatt-hours of energy but you only use 800 kWh you would receive a bill credit for the excess energy you put into the grid. These credits stack, so during the sunny summer months you can rack up substantial credits that will reduce your electric bill in winter when your panels get less sunlight. Net metering greatly improves the financial viability of solar since it enables you to reap the benefits of every kWh of energy you produce, regardless of when you produce it.
Solar panels in Connecticut are exempt from the state sales tax thanks to the PV energy sales tax exemption. That's the equivalent of 6.35% in savings. If your system totals $15,000, 6.35% savings is worth $952.
Like every other state, new solar panel systems in Connecticut are eligible to receive the federal solar tax credit of 26%. This credit is applied on your annual income tax credit.
There are many options when it comes time to purchase our solar panels. You can finance, lease, or pay the entire cost upfront. The right choice will depend on your financial situation and the costs of your system and other factors. Our solar calculator will help you weigh your options. You can find more information on leasing vs buying solar panels here.