Commercial Solar Incentives in Connecticut

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

CT Property Tax Exemption

Connecticut has a 100% property tax exemption for solar power systems. 

CT Sales Tax Exemption

In Connecticut, businesses can avoid the 6.35% sales tax when purchasing their solar equipment. On a $100k project, you're saving $6,350!

Utility Net Metering 

Connecticut's two main utility companies, United Illuminating and Eversource, participate in net metering where businesses can receive utility-specific electricity credits for any excess kilowatt-hours (kWh) remaining at the end of the month at a rate of 3.18 cents/kWh.

Connecticut Business owners can take advantage of several federal solar incentives that complement the state's current programs. When combined, these incentives can significantly reduce the cost of installing a solar system.

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Connecticut may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Connecticut business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Connecticut Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

Learn More!

Connect with a local Connecticut installer to see which incentives can contribute to your solar system. 

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