Who would guess that a state located in the northeast would rank seventh in the nation for solar-friendly policies? Known as the Constitution State, Connecticut does a lot to help homeowners who want to go solar.
What does it cost to go solar in Connecticut?
The cost of solar is generally described by using the term “per watt installed.” In the United States, the average cost of solar per watt installed is $3.16 and the average size of a home solar system is five to eight kilowatts. So, going solar can cost anywhere from $14,000 to more than $30,000. Keep in mind that you may get some of that investment back if you are able to apply the 30-percent federal residential renewable energy income tax credit (ITC). However, that is a tax credit, meaning a credit against your tax liability similar to purchasing a hybrid or electric vehicle. Regardless, it’s still available for those who qualify and there are other state programs that can reduce the cost of a solar system. Do note, the tax credit will continue at 30% through 2020 but will begin dropping until the tax credit is over in 2022.
Solar is an investment that will pay for itself over time by reducing or eliminating your dependence on tradition power. And, in many cases, adding solar to your home can come with no out of pocket expenses with zero-down lease and loan options. In most situations, the homeowner’s lease or loan payment is less than their previous cost of electricity.
For more details, visit our blog post How Much Does it Cost To Get Started with Solar.
How long will it take for your solar system to pay for itself in Connecticut?
If we use a study in California, the 2017 State Solar Power Rankings claims that the average payback time on a five-kilowatt system in California is seven years. For you numbers folks, that’s an an investment rate of return of 17.7%. Using this study as a guide, it would be safe to think that you could see the same results in Connecticut.
What rebates and financial incentives are available for solar in Connecticut?
You may be familiar with the federal tax credit for purchasing a hybrid or electric vehicle. Solar systems have a similar tax credit program. Keep in mind that this is a tax credit. If you routinely pay federal income taxes, you may qualify to receive the Federal Solar Investment Tax Credit (ITC). Currently, it’s a 30% tax credit against your federal tax liability which is a significant savings to most homeowners. The ITC is set to step down to 26% in 2020 and 22% in 2021. After 2021, the credit is scheduled to drop to zero. However, the current plan was originally scheduled to expire at the end of 2007 and lawmakers could certainly extend the current program.
Currently, 20 U.S. Democratic senators, including presidential hopefuls Elizabeth Warren and Kamala Harris are making moves for another extension. In a June 19 letter, the Democratic senators stated, “We are … concerned about the impact on jobs if the ITC decreases at the very moment it’s needed most.” The letter also noted that the wind-down would kick in while the US continues to lack major federal programs to foster renewables and discourage fossil fuels.
US solar trade body SEIA endorsed the calls for an ITC extension, describing the scheme as a “common-sense policy” that has generated “hundreds of thousands of jobs” and triggered US$140 billion worth of private investment.
“The ITC has a record of bipartisan support, and circumstances since 2015, such as trade tariffs and a heightened awareness of climate change, only serve to bolster the case for extending the wildly successful policy,” said SEIA CEO Abigail Ross Hopper.
The state of Connecticut has gone a step further and established its own set of public policies to encourage solar adoption. Take the Renewable Portfolio Standard as an example. This policy has established a 2020 goal of having 27% of electricity production coming from renewable energy sources. To support this initiative, Connecticut has the nation’s best state solar rebates. But it doesn’t stop there! The state also has a 100% sales and property tax exemption for homeowners who go solar. And, Connecticut supports net metering by requiring utility companies to credit homeowners who produce more energy than they use and pass it back to the grid.
Regardless of where in Connecticut you live, there are a variety of financial incentives to help you make the move to solar. You can find out what is available to you by searching the US Department of Energy database. You can also consult with a knowledgeable solar dealer, such as SAVKAT Solar. We offer a free, no-obligation quote and this can be achieved by completing a quick form for your free solar panel estimate.
When should you go solar?
The sooner you go solar, the sooner you start capturing the sun’s energy and converting it to usable electricity. It doesn’t matter where you live, there will be some factors that affect your energy production such as weather, shade, local utility rates, the size of your system and local policies. However, there is no doubt that going solar now will start the process of saving money on your energy. The more solar energy you produce the more you save on your energy expense.
When looking for a solar professional it is important to find a company that understands how solar works and what will work best in your specific application. There are even differences in the knowledge base for a solar contractor in New Mexico and New York. Many of these differences will come down to local and regional policies and permitting. But, regional weather can also add to the complexity of installation.
Get a Solar Estimate. Ultimately, the easiest way to answer the “How to go solar in Connecticut” question is to give our solar advisors a call at 800-860-6932. They’ll help you get a free estimate for your home.
Are you ready? To find out how you can go solar and become less energy dependent, request a free quote from us at SAVKAT Solar. Still have more questions? Check out our Solar 101 page or our FAQ page. If that still leaves you unsure, we are happy to answer any other questions by giving us a call at 800-860-6932.