Earlier this year, Connecticut’s Public Utilities Regulatory Authority (PURA) decided to end the traditional net metering program previously available to all renewable energy customers in the state. The move certainly ruffled some feathers across the state, especially among the renewable energy supporters. However, it’s not all bad news.
Net Metering IS NOT Gone, It Has Morphed
That’s right. Although the state has discontinued the traditional net metering program, a replacement program has been implemented in its place.
The replacement program allows solar customers two options to sell their power to their utility company – a buy-all-sell-all option and a net metering (similar to the one before) option.
The rates at which the incentives are calculated are different for the two options. However, they are still significant and make a sizable contribution to the profitability of your home solar solution in CT. In fact, for the new net metering program, there is an additional REC (Renewable Energy Credit) set at $31.80/MWh for 20-years! So you can see, its not gone – it has just morphed for the better!
Other Government Incentives
The federal tax credit (ITC) can single handedly reduce your investment into home solar by a massive 26%. The tax credit is available to all home solar buyers.. It’s not a rebate or a discount, it’s a tax credit. So, your annual income must be enough to take advantage of the full amount of credit available to you. However, if the full amount can’t be taken during the taxable year, fear not – it can rollover! Your solar company can help clarify how much savings you can incur by way of ITC credit at the end of the financial year.
There’s a state sales tax exemption for all solar purchases. Once again, that’s a pretty sizable amount. What’s more, home solar purchases are exempt from property taxes too. While adding a home solar solution appreciates your property’s worth, the increase in value doesn’t come with any extra tax burden. That’s an incredible deal right there.
The Window of Opportunity Is Open
Considering the various incentives already available to home solar buyers and the new changes to CT’s net metering program,home solar is still a money-making machine, and will be one for the near future!