In the past, solar panels were thought to be a contraption that only survivalists used. As times changed, more and more residential areas are making use of solar technology.
However, before you make that critical decision to switch over, you’ll need to be adequately informed about the laws in Connecticut. So, please read on as we dive into Solar Panel Laws in Connecticut.
Connecticut Solar Policy Information
Thus far, Connecticut has the best policies to deal with the new and upcoming solar panels trend. An initial investment of as much as $40000 can be expected. However, potential homeowners can rest assured as many incentives make these systems seem less costly.
For most, the average energy savings can easily amount to $2000 each year. Property taxes and other bills won’t increase because of the panels.
The state has started offering a series of payments that are solely based on rebates. This means that when they produce extra electricity, they’ll receive payments when it returns to the company. However, there are two designated ways that this is done. The main one is referred to as zero-emission renewable energy credits.
This serves to ensure that the bill is kept low. So, you’ll be able to use some electricity from the company, and you’ll stand a chance of it being either free or very low in cost depending on what your panels are produced. The second involves cash.
Power companies will easily pay their clients if they’re purchasing electricity from their panels. With that said, it should be noted that most companies use the credited system ZERC. The concept is often referred to as net metering.
Presently, the state of Connecticut does not have any laws to protect those who want to install these solar systems. However, some states are working on making both solar easement laws and solar access laws a part of everyday life. This seeks to allow homeowners to install solar panels in Connecticut homes despite those who are against it.
In some instances, you may need to have your installer intervene and act as the mediator. In essence, they’ll discuss this with the HOA in your community. Many companies already face this issue and will be able to deal with it in the best manner possible.
Financial Incentives, Rebates, and Tax Credits
Federal Tax Credit
For residential purposes, the Renewable Energy Tax Credit offers homeowners up to 30% on the initial cost of the panels and the cost for installation and equipment. However, this only applies to your main or primary home. Properties such as rentals or vacation homes are not included in this.
New and existing homes can claim these rebates. However, after the year 2019, persons can expect to see a decrease in the program in the year 2022. The rebate will stay at 26% until 2020 and be reduced to 22% in the program’s final year.
Connecticut State Solar Tax Incentives
The state also offers up to $10000 in rebates. Before you can put a final value, your total energy consumption will be considered. If for some reason, you managed to use more than 20kW, then you can expect a handsome amount of $9400. If you use a lot less, you can secure a cool $600 or even up to $1500.
Homeowners can easily purchase their systems before applying for the available rebates. After they qualify, they’ll receive a check with the reimbursement. So, if you’re interested in using the rebate program, you may want to apply soon.
Property Tax Exemption
Upon installing these solar panels, homeowners will also receive an exemption on their property taxes. This is excellent news since solar systems significantly increase the original value of a home. The state offers the exemption to homeowners to offset the increase in taxes. As such, your taxes will remain the same as they were before you had the installation done.
Sales Tax Exemption
At this point, there aren’t any special tax credits available for installations. In essence, installations are exempted from sales taxes. This saves homeowners a lot of money.
General Increase in Home Value
Within the year 2015, the Energy Department of the United States indicated over 22000 homes across the states already owned solar panels. This, therefore, increased the value of the property by a whopping $15000 more. When your home saves even just a dollar on its energy bills, your property value increases by $20.
Since standard installations usually cost around $40000 according to the NREL, you’ll be able to ask for an increased value of your home. Solar panels do more than save you money, they increase the value of your home, and if ever you decide to sell, your solar panels will cover their own cost.
The states’ net metering program allows homeowners to make some money on the excess energy produced. Thus far, Connecticut is the leading state for properties that are selling with these state-of-the-art panels.
As we conclude, we have just looked at the laws governing the installation of solar panels in the state of Connecticut.
When homeowners install solar panels, they stand the chance of making a small profit from rebates, and they have the opportunity to also benefit from the newly added value of their home. If you’re thinking of making the switch, now is a perfect time!