Many people look for financing options to cover the upfront costs involving solar system installations. Although Connecticut doesn’t have Solar Tax Credits, there are still many ways to earn incentives.
Connecticut’s RSIP
The upfront installation expenses can be dreadful, making it imperative to seek alternative financing aids like RSIP. The Residential Solar Investment Program (RSIP) can be profitable for CT residents, making the transition to solar easier. Qualified residents receive incentives that cover the solar energy system’s installation costs or leasing one from a third-party provider.
The program’s rebates is $.463/watt for the first 10 kW. These rates can vary, relying upon the performance of your solar system. But, there is a high probability that you can earn over $4,000 5 with RSIP depending on system size and efficiency..
The financial advantage of incorporating a solar system to your home can extend in the long run. You can already notice a significant reduction in your utility bills on the day it’s installed. Not only that, but they can also provide a return on investments within months of installation. For example, the savings you earned from this program can be placed towards your mortgage instead. This advantage can help you to increase the value of your home. Therefore, you can reduce extra expenses and pay off your mortgage faster all at once.
Federal Tax Credit
Another valuable incentive besides Solar Tax Credit is the Federal Tax credit. The US government imposed a 26% tax credit to help you finance your solar lifestyle. It is important to note that this can only be credited if you purchase your solar system outright. The Federal Tax Credit covers 26% of the final costs, from gathering equipment to installing your solar system. For instance, if your overall solar installation costs amount to $20,000, you can receive a $5,200 tax credit. Your tax bill could be reduced to zero and receive the excess if you owed less than $5,200 for that year.
Plan your solar installation as early as possible, for the tax credits are stepping down to 22% in 2021. After that, they will no longer offer tax credits to residents.
Net Metering Credit
When your solar panels produce excess energy, that excess returns to the electricity grid. Net Metering is the amount that your utility reduces based on the excess electricity added to your grid. Calculate this credit by multiplying excess kilowatt-hour (kWh) fed into the electricity grid by standard electricity rate. For instance, if your solar panels produce 20 kWh, you can receive a credit worth 7.8 cents/h on your bill.
Connecticut residents are fortunate for there is no predetermined limit to net metering credits, unlike in Massachusetts. The remaining credits can be forwarded to the next month but wiped at the end of the year.
Low-Interest Financing
Many are thrown away with the thought of the expenses before implementing solar energy systems. For this reason, many companies in Connecticut offer low-interest loans to cover the upfront installation costs. As an example, the Energy Conservation Loan can lend up to $25,000 for eligible residents. This financing is a long-term loan that lasts up to 10 years, with interest rates between 0% and 6%.
You can also acquire Smart-E loans to finance home improvements, including solar system installation. Borrowers can loan up to $40,000, with interest rates between 4.49% and 6.99%. You don’t need to worry, for these can be payable for up to 12 years.
For more information, please go to Green Power Energy.
