SEPA
Connecticut
Renewable Energy and
Energy Efficiency Incentives
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RENEWABLE ENERGY INCENTIVES • CONNECTICUT
Connecticut Renewable Energy and Energy Efficiency Incentives
Climate change and energy security are major challenges of our time and the
environmental implications are as much local as they are global. Reducing our use of
fossil fuel-based energy reduces greenhouse gases that contribute to global climate
change. EPA New England is providing this resource fact sheet as a starting point for
residential, municipal and commercial energy consumers. It outlines the federal, state
and utility incentives for energy efficiency and renewable sources of energy.
(kitphoto) Theft
photo courtesy of CTChan Energy fund
photo courtesy of the Ashforih Company
(right photo) Solar panels, photo courtesy
of Cf Clean Energy Fund
Federal
Energy Efficient &
Energy Improvement Mortgages
• Credits a home's energy efficiency in the mortgage itself
• Gives borrowers the opportunity to finance
cost-effective, energy-saving measures
• Energy Efficient Mortgages (EEM) fund new
homes that are already energy efficient
• Energy Improvement Mortgages (EIM) allow borrowers to
include the cost of energy-efficiency improvements in
existing homes without increasing the down payment
• Sponsored by federally insured mortgage programs
• Visit energystar.gov - enter "Mortgage" in the search box
Residential Renewable Energy Tax Credits
Credit available for systems placed in service by 12/31/2016:
Applies to qualified systems for photovoltaics, solar water heat, wind,
fuel cells, geothermal heat pumps, solar electric technologies.
Credit is up to 30% of the cost.
Credit limit:
• No limit on solar photovoltaic electric systems
• $2,000 for solar water heating
• $500 per O.SkW for small wind (<100kW) up to $4,000
• $500 per O.SkW for fuel cells
• $2,000 for geothermal heat pumps
• Visit dsireusa.org - click "Federal Incentives," then scroll
to "Personal Tax Credit" and click on "Residential
Renewable Energy Tax Credit"
Residential Energy Efficiency Tax Credits
Credit available until 12/31/2009:
Applies to qualified water heaters, furnaces, boilers, heat pumps, air
conditioners, building insulation, windows, doors, roofs, circulating fans used
in qualifying furnaces, stoves that use biomass fuel to heat a home or to heat
water. Credit is up to 10% of cost of building envelope improvements, or up
to 100% for qualified energy property.
Credit limit:
No more than $500 for all improvements combined
$50 for advanced main air circulating fans
$150 for natural gas, propane or oil furnace or hot water boilers
$200 for windows
$300 for electric heat pump water heaters
$300 for electric heat pumps
$300 for central air conditioners
$300 for natural gas, propane or oil water heaters
$300 for biomass stoves
Visit energystar.gov - enter "Tax Credits" in the search box
Residential and Corporate Energy
Conservation Subsidy Exclusion
• Electric utility customers joining an energy conservation
program may receive a:
• Reduction in the purchase price of electricity
• Non-refundable credit against the price of electricity
• Rate reduction that is not included in income and not taxable
• Visit dsireusa.org - click "Federal Incentives," then scroll to
"Corporate Exemption" and click on "Residential Energy
Conservation Subsidy Exclusion (Corporate)" or scroll to
"Personal Exemption" and click on "Residential Energy
Conservation Subsidy Exclusion (Personal)"
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USDA Rural Energy for America Program (REAP)
• Promotes energy efficiency/renewable energy for agricultural
producers and rural small business
• Grant program open to commercial, schools, local, state and
tribal governments, rural electric cooperatives, agricultural,
public power sectors
• Maximum limit of grant equals 25% of project cost with various caps
• Visit www.rurdev.usda.gov/rbs/farmbill
Tribal Energy Program
• Federal grant program to promote tribal energy efficiency with
eligible systems, including passive solar space heat, solar
space and water heat, photovoltaics
• Visit eere.energy.gov/tribalenergy
State
Sales and Use Tax Exemption
for Energy-Efficient Products
• For qualified equipment insulation, water heaters,
lighting, furnaces, boilers, programmable thermostats,
caulking/weather-stripping, duct/air sealing, building
insulation, windows, doors, water heaters,
geothermal heat pumps
• Open to residential, commercial, general public/
consumer sectors
• 100% exemption
• Visit dsireusa.org -click "CT," and scroll to
"Sales Tax Exemption"
Sales and Use Tax Exemption for
Solar and Geothermal Systems
• Solar water heat, solar space heat, photovoltaics,
geothermal heat pumps
• Open to residential, commercial, general public/
consumer sectors
• 100% exemption with no expiration date
• Exemption includes equipment related to eligible systems, and
sales of services relating to the installation of eligible systems
• Visit dsireusa.org - click "CT," and scroll to
"Sales Tax Exemption"
CCEF—CT Solar Lease Program
• Photovoltaics
• Open to residential/multi-family sectors
• Available to owners of one-to four-family homes with household
income up to 200% of the area's median income
• 20-year lease term, fixed monthly payments
• Homeowner is responsible for paying for repairs,
maintenance and insurance
• Visit ctsolarlease.com
CCEF—Affordable Housing Initiative
Solar Photovoltaic Rebate Program
• Photovoltaics
• Open to developers of residential/multi-family
and commercial sectors
• Maximum Incentive:
. Single-family: $6/W for the first lOkW,
up to $60,000 per project
. Multi-family: $6/W for the first 200kW,
up to $850,000 per project
• No system size restrictions
• Equipment must be new and listed on the CA
Energy Commission's list of eligible equipment
• Inverters and installation must carry a minimum
5-year warranty
• Photovoltaic panels must carry a 20-year warranty
• Must be grid-connected and installed by a pre-approved
contractor
• Must be in service territory of United Illuminating
Company or Connecticut Light & Power
• Visit ctcleanenergy.com -enter "Affordable" in the
search box
CHIP—Energy Conservation Loan
• Qualified chillers, furnaces, boilers, heat pumps, air
conditioners, programmable thermostats, duct/air sealing,
building insulation, windows, passive solar space heat,
solar water heat, solar space heat, photovoltaics, wind,
biomass, geothermal heat pumps
• Open to residential/multi-family sectors
• Families must meet eligibility requirements
• Interest rates vary
• $400 - $25,000 (one to four-family units)
• $2,000 - $60,000 (multi-family of five or more units)
• Loan is repaid over 10 years
• Visit chif.org - click on "Homeowner/Borrower,"
then select "Energy Conservation Loan"
Utility
Connecticut Light & Power (CL&P)—Small
Business Energy Advantage Program
• Lighting, furnaces, boilers, heat pumps, air conditioners,
programmable thermostats, refrigeration
continued >
PAGE • 3
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RENEWABLE ENERGY INCENTIVES
CONNECTICUT
Utility, cont'd
• Open to commercial, industrial, federal, state and local
government sectors
• Combined rebate and loan program
• Businesses with an average 12-month peak demand
lOkW - 200kW qualify
• Prefer industrial customers with loads below 50kW
• Visit cl - p.com - click on "For My Business," then enter
"Small Business" in the search box
The United Illuminating Company—Small
Business Energy Advantage Program
• Lighting, furnaces, boilers, heat pumps, air conditioners
• Open to commercial sector
• Combined rebate and loan program
• UI representative conducts energy audit and
recommends energy efficient measures
• Rebate equals 25% - 50% of costs
• Remaining costs may be paid off as zero-interest loan
on monthly utility bill
• Visit uinet.com-click on "Business," select
"Small Business Energy Advantage" from under
"UI Products and Services"
State Contacts:
Connecticut Clean Energy Fund
Community Innovations
(860)563-5851
ctcleanenergy.com
CT Solar Lease Program
AFC First Financial
(800)232-3477
afcfirst.com
Federal Contacts
US Department of Agriculture
REAP Grant
(800)670-6553
US Environmental Protection Agency
EPA New England
Cynthia Veit
(617)918-1666
veit.cynthia@epa.gov
John Moskal
(617)918-1826
moskal.john@epa.gov
Multiple Energy Efficiency Products Incentives
• Many state and local energy providers offer residents
and businesses rebates and other incentives on energy
efficient appliances and products such as water heaters
lighting, boilers, etc.
• Visit dsireusa.org, click on "CT" then scroll to
Utility Rebate Program to find your provider:
. Connecticut Light & Power
. Groton Utilities
. Norwich Public Utilities
. The United Illuminating Company
Success Stories
Residential—State incentives helped make the installation of
the 200th residential solar photovoltaic (PV) array in CT happen in late
2007. This milestone also means CT reached one megawatt (MW) of installed
residential solar capacity. The homeowners received a $27,232 rebate from
CCEF through its Solar PV Rebate Program, which offset approximately 50
percent of the cost. The homeowners had a 6.12kW, ground-mounted solar
array installed, which generates enough electricity to reduce the family's
electric bill, on average, by 90 percent each month. Story courtesy of the
CT Clean Energy Fund
Commercial—The Business Council of Fairfield County, CT, and
its member companies have embraced energy efficiency to save money,
reduce air pollution and improve reliability of the region's antiquated and
overburdened electric system. The council and EPA together developed an
innovative program to improve energy efficiency in large office buildings
that was adopted by the Connecticut Public Utilities Commission and put in
place by Northeast Utilities and United Illuminating. In the first round of the
program, participating companies received comprehensive energy upgrades
in about 8 million square feet of office space. This saved them hundreds of
thousands of dollars and significantly reduced energy use.
Business—The 121-kilowatt rooftop solar photovoltaic system at the
Whole Foods Market Distribution Center in CT generates approximately
137,500 kilowatt hours of clean electricity per year and supplies 10% of the
facility's total energy needs. Additionally, the clean energy that the system
is expected to deliver will enable the avoidance of 65 tons of carbon dioxide
emissions each year. The CT Clean Energy Fund provided a project grant of
$516,223 to support over half of the project's cost, with the remaining costs
covered by a solar electricity provider. Whole Foods has also committed to
work with local Connecticut middle and high schools to educate students
about solar energy systems and their benefits. Story courtesy of the CT Clean
United States
Environmental Protection
Agency New England
EPA901-F-09-001
April 2009
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