There are substantial financial and environmental benefits to home solar panel systems in Connecticut. The upfront investment is significant, but there are number of federal and state programs that offer incentives, rebates and credits to qualifying homeowners in Connecticut. There are also a number of financing options that can help make a home solar solution accessible for homeowners. At Sun-Wind Solutions, we want to make sure that you get all of the right information to help you make a qualified decision. We’ll help you understand the available incentives and financing options and when you’re ready to move forward with your project, we’ll do all the paperwork for you!
Connecticut Solar Incentives & Home Solar Rebates
There are a number of financial incentives available to homeowners for home solar systems from both state and federal institutions.
- State Rebate – Current rebates can reduce the cost of your system by 9–10% of the total gross cost.
- Federal Tax Credit – The gross system cost, less the rebate, is eligible for a 30% federal tax credit.
- Property Tax Exemption – The taxable assessed value of your home will not increase as a result of a solar installation.
Our free home solar evaluation includes details on qualifying rebates and credits. When you decide to move forward with your home solar project, we take care of all of the paperwork to make sure that you get the maximum solar incentives available.
Home Solar Rebates and Financing Options Made Simple: The Facts, and What’s Right for You
Solar panels naturally derate over their lifespan and our systems are guaranteed to perform to at least 80% of year-one production in the 25th year after initial installation. Utility rates rise over time as well. The financial models and cash projections we develop for you take these factors into consideration by applying a 0.5% derating factor as well as a 3% average annual rate hike, both conservative. We never manipulate our factors to make our projections more attractive and we want you to have a thorough understanding of how our projections are developed before proceeding. We use “real” numbers and we deliver what we promise.
Here is a simple pros and cons guide to financing your home solar project:
Best – Personal Financing
- Financing the home solar system yourself gives you the greatest return on your investment (ROI). You are eligible for the full rebate and tax credit.
- ROI on a home solar system that has “typical” site conditions is 8% or greater annually over the 25 year life of the system. And, because the ROI is treated as savings, not income, this ROI is tax-free.
- Very low risk with a very high yield.
Better – Loan
- A loan for your home solar system will allow you to forgo coming up with the entire cost of the system at time of installation.
- You can still take full advantage of the full home solar rebates and tax credit.
- The debt service (payments) for the loan years (the term) will most likely be higher than the standard utility-company-supplied cost of electricity that your home solar array has now replaced. However, the full benefit kicks in at the completion of the loan term, where the home solar system is entirely paid off and you are utilizing the generated electricity from the PV system with no associated cost. For example, if your loan term is 5 years, you will have “free” electricity from your system for 20 years (year 6–25).
- The 25 year average annual ROI is slightly lower than personally financing the home solar project, but still very attractive.
(Note: many of our clients have opted for a home equity loan, or HELOC. If you qualify, a HELOC, can usually be secured at a better rate and term than the loan option described here).
Good – Leasing – or “Free Solar”
- You can reduce your electricity costs with no money down.
- We can install home solar panels that are owned by a leasing agent, on your property, that you do not have to “pay” for (i.e., free”).
- Instead of paying the current “retail” electricity rate to your local utility company, you pay the leasing agent a reduced rate for electricity produced by the home solar array(s).
- All Connecticut solar incentives are taken by the leasing agent and factor into your “new” rate.
- The lifetime savings are much less than the scenarios above, but you still benefit from reduced electricity costs with no money down.
- Request a Free Home Solar Evaluation
- We’re here to answer any home solar rebate questions you may have. A simple phone call is all it takes to get a preliminary assessment regarding the viability of a home solar system at your site. If you like what you hear, we can then schedule a FREE, no-obligation detailed site assessment which will show expected system production as well as the financial benefits of investing in this project.