CT State Rebate
The Connecticut Green Bank (formerly known as CEFIA) provides a state rebate for homeowners in Connecticut. The current incentive offers a $0.513 per watt rebate for the first 10,000 watts and $0.40 per watt for up to 20,000 watts for grid-tied photovoltaic (PV) systems. Sunlight Solar Energy applies for the rebate on your behalf, so the state rebate amount is deducted from the system investment immediately. This means you do not need to pay the full price out of pocket and wait for your reimbursement. Additionally, systems subsidized by Connecticut Green Bank may be sized to cover up to 100% of your home’s electricity requirements. We can determine your requirements by looking at your most recent electric bill which contains your average daily usage for the past 12 months.
Federal Tax Incentive
As of January 1, 2009, a taxpayer may claim a tax credit of 30% of qualified expenditures for a system. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. This credit can be used for both solar electric and solar thermal installations.
Combined with the state rebate, this tax incentive can help you take a significant amount off the cost of your system. A tax credit reduces the amount of your tax liability, unlike a tax deduction, which reduces the amount of your taxable income.
You can figure out and claim your federal tax credit by using Form 5695. This form can also be used to carry over the credit from a previous year.
If you have any questions about Connecticut’s incentive programs, please call us at (203) 878-9123.