Is It Worth Going Solar in Connecticut?

Yes, solar energy is generally worth it for most homeowners in Connecticut. Several factors contribute to this conclusion, including high electricity rates, substantial financial incentives, and the potential for significant long-term savings.

High Electricity Rates

Connecticut has some of the highest electricity rates in the United States, averaging around 26.78 cents per kilowatt-hour (kWh). This makes solar energy particularly valuable as it can offset these high costs.

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Financial Incentives

Connecticut offers a variety of financial incentives that make solar installations more affordable:

• Federal Solar Tax Credit (ITC): This credit allows homeowners to deduct 30% of the cost of installing a solar energy system from their federal taxes.
• State Sales Tax Exemption: Solar systems are exempt from the 6.35% state sales tax.
• Property Tax Exemption: The added value from a solar installation is exempt from property taxes.
• Net Metering: This allows homeowners to sell excess energy back to the grid, further reducing electricity costs.

Cost and Savings

The cost of installing solar panels in Connecticut varies but generally falls between $2.50 and $3.00 per watt.

For a typical 6 kW system, the cost before incentives is around $18,000 to $20,000, which can drop to approximately $12,600 to $14,000 after applying the federal tax credit.

Larger systems, such as a 10.87 kW system, can cost around $33,465 before incentives, dropping to about $23,426 after the federal tax credit.

Long-Term Savings

Homeowners can expect to save a significant amount over the lifetime of their solar system.

Estimates suggest savings of around $58,012 to $77,037 over 20 years, depending on the size of the system and local electricity rates.

The average payback period for a solar system in Connecticut is about 6.77 to 8 years, after which the electricity generated is essentially free.

Environmental Benefits

Switching to solar energy also has substantial environmental benefits. It reduces reliance on fossil fuels, lowers carbon emissions, and contributes to a cleaner environment.

Average Savings on Electricity Bills After Installing Solar Panels in Connecticut

1. Monthly Savings: On average, Connecticut residents can save between $100 to $150 per month on their electricity bills after installing a 5 kW solar system . This translates to annual savings of approximately $1,200 to $1,800.
2. Long-Term Savings: Over the lifespan of a solar panel system (typically 25 years), homeowners can save between $58,012 to $77,037, depending on the size of the system and local electricity rates.
3. Payback Period: The average payback period for a solar system in Connecticut is around 6.77 to 9 years, after which the electricity generated is essentially free

Solar Payback Period in Connecticut

The payback period for solar panels in Connecticut typically ranges from 6.77 to 9 years.

This period is the time it takes for the savings on electricity bills to equal the initial investment in the solar panel system.

• EnergySage reports an average payback period of 6.77 years for a 5 kW system.
• EcoGen America states that the average payback period in Connecticut is between 7 to 9 years, depending on various factors such as electricity consumption, system size, and available incentives.
• SolarMetric also mentions a 7-year payback period for a 5 kW system.

 

Local Incentives for Installing Solar Panels in Connecticut

Connecticut offers several local incentives to make solar installations more affordable:

1. Sales Tax Exemption: Solar energy systems are exempt from the 6.35% state sales tax, reducing the upfront cost of purchasing solar panels.
2. Property Tax Exemption: The added value from a solar installation is exempt from property taxes, meaning homeowners do not pay additional property taxes due to the increased home value from solar panels.
3. Net Metering: Although traditional net metering has been replaced, the Residential Renewable Energy Solutions (RRES) program offers two tariffs:
   1. Netting Tariff: Credits excess solar energy at the retail rate, which can be used to offset future electricity bills.
   2. Buy-All Tariff: Pays homeowners for all the solar energy produced at a fixed rate.
4. Smart-E Loans: Offered by the Connecticut Green Bank, these low-interest loans help finance home energy upgrades, including solar panels. The loans have interest rates ranging from 4.49% to 6.99% and terms of five to 12 years.
5. Energy Storage Solutions Program: Provides rebates for battery storage systems, which can complement solar panel installations. Rebates can be up to $7,500.
6. Local Utility Rebates: Some local utilities, such as Norwich Public Utilities and Groton Utilities, offer rebates for energy-efficient appliances and home improvements, which can include solar-related upgrades.

These incentives, combined with the federal solar tax credit, significantly reduce the cost of installing solar panels and shorten the payback period, making solar energy a financially attractive option for Connecticut residents.

City-specific solar rebates in CT

Bridgeport

1. Building Permit Fee Waivers: Local governments in Connecticut, including Bridgeport, can pass laws exempting Class I renewable energy projects from permitting fees, which can range from $50 to $150.
2. PACE Financing Programs: Property Assessed Clean Energy (PACE) financing allows residents to go solar with zero upfront costs using a government loan, which is repaid through increased property taxes. This program is handled by local governments.
3. Local Utility Rebates: Bridgeport residents can benefit from rebates and incentives offered by local utilities and the Connecticut Green Bank, including financing options and commercial-specific incentives.

Hartford

1. Residential Solar Investment Program (RSIP): This program offers performance-based incentives (PBI) and expected performance-based buy-down (EPBB) incentives for solar installations. For customer-owned systems, the incentive is up to $0.358/W for systems up to 10 kW and $0.207/W for systems between 10 to 20 kW.
2. Energy Conservation Loan: Hartford residents can access loans for energy-efficient upgrades, including solar installations, with amounts up to $40,000.

Stamford

1. Smart-E Loans: Offered by the Connecticut Green Bank, these low-interest loans help finance solar installations and other energy efficiency improvements. Interest rates range from 4.49% to 6.99%, with terms of five to 12 years.
2. Local Utility Rebates: Stamford residents can benefit from various rebates and incentives offered by local utilities, including those for energy-efficient appliances and home improvements.

New Haven

1. Community Solar Programs: New Haven has community solar projects that allow residents to benefit from solar energy without installing panels on their own homes. These projects provide discounted electricity to local nonprofits and low-income households.
2. Local Utility Rebates: Similar to other cities, New Haven residents can access rebates and incentives from local utilities and the Connecticut Green Bank.

West Hartford

1. Residential Solar Investment Program (RSIP): Similar to Hartford, West Hartford residents can benefit from the RSIP, which offers incentives for both customer-owned and third-party-owned solar systems.
2. Energy Conservation Loan: Available for energy-efficient upgrades, including solar installations, with amounts up to $40,000.

These city-specific incentives, combined with state and federal programs, make solar energy more accessible and affordable for Connecticut residents.

Final Word and Recap: Is Solar Worth It in Connecticut?

The state’s high electricity rates, combined with substantial financial incentives like the federal solar tax credit, state sales tax exemption, and property tax exemption, make solar panels a cost-effective and environmentally friendly choice.

With an average payback period of 6.77 to 9 years and potential savings of up to $58,012 over the system’s lifetime, going solar in Connecticut offers significant financial and environmental benefits.

Ready to start saving on your energy bills? Get a free solar quote from local installers today and see how much you can save with solar energy. Click here to get started!