Solar power – the conversion of sunlight into electricity, is on track to become the world’s largest source of electricity and is experiencing rapid growth. In 2020, solar energy made up 11 percent of US renewable energy consumption according to reports.
With increasing electric rates and extreme seasonal temperatures threatening resources, more residential and commercial buildings are having solar systems installed. Experts have been touting these benefits which far outweigh costs – from reduced monthly utility bills to environmental protection and a chance to recoup the cost of having these systems added to your property while incentives are still being offered.
The investment tax credit (ITC) is a federal tax credit for solar that allows homeowners to deduct 26 percent of the cost of installing their solar energy system from their federal taxes.
While these credits are set to expire at the end of 2023 and will be reduced to 22 percent at the end of 2022, state-based incentives will run sooner. Here in CT, you have until the end of the year here to take advantage of additional benefits. That means less than six months to have a solar system installed to be eligible to receive the discounts.
Here’s what you should know.
Tax Incentives for Solar Panels in CT
Homeowners in the state of Connecticut have an opportunity to reduce utility spending while protecting the environment. Perhaps the biggest benefit though is the tax incentives in the form of credits and rebates that you are eligible for when installing a solar system on your roof.
In the state of Connecticut, one way you can further increase your ROI from solar is with the Connecticut Green Bank’s “RSIP” (Residential Solar Investment Program). This is a rebate you can receive $0.426 per watt of solar installed, up to 10kW.
Add to this net-metering rates (1-for-1 credit compensation) available in the state and you can receive credits for the electricity the system on your roof is producing that you’re not using. A bank of these credits can then be applied later on when your system is not producing energy (like at night) instead of being charged the utility fees.
Other Solar Savings Available in CT
While adding solar panels to your home will increase its value and make it easier to sell (if you’re thinking of selling soon) you can also rest assured in CT that current tax breaks won’t lead to increases in your taxes as your home’s value increases. This is thanks to the Sales and Use Tax Exemption for Solar and Geothermal Systems and the Property Tax Exemption for Renewable Energy Systems. All of these efforts have helped catapult CT as a leader for other states to follow and model after as they push to get more people to transition to green energy.
Finally, if you need assistance paying for a solar energy system to be installed on your roof, then Connecticut also has a low-interest Energy Conservation Loan available for eligible families (up to $25,000 for 10 years with only 0-6% interest).
The Energy You’ll Need For The Future
In the future, moving to grid-connected solar-powered generators to replace conventional sources of electricity will mean even less dependency on fossil fuel and reduced costs for solar electricity production.
Don’t get left behind. Save now and be future-ready. Savkat Solar sells and installs SunPower panels to handle any energy needs. These panels are the most efficient, with the lowest degradation, and highest quality available on the market. Start your free online quote today!