How Can I Get the Most out of Connecticut’s Residential Solar Investment Program?

by | Oct 20, 2020 | Solar Panels

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Minimizing upfront costs to solar installation presents an excellent opportunity for people to increase access to embracing the solar lifestyle. Given that solar systems can cost thousands of dollars, any strategy to ease the expenses can significantly impact the entire industry. That said, let’s discuss RSIP and how you can maximize its benefits.

What is RSIP?

The Nutmeg state strives to encourage more people to implement solar systems in their homes and business. The Residential Solar Investment Program (RSIP) was initially introduced in 2012 to push green technology utilization. RSIP offers rebates starting at $.463/watt for the first 10 kW installed.

Different rebate rates are dependent on the performance of your solar system. If your system is rated at 5kW, you can likely get a rebate of $2,315 with RSIP. This rebate can save you upfront costs and even help cover your remaining electricity bills. It is because, despite going solar, some still tend to consume from their electricity grids from time to time.

If you’re thinking of participating in RSIP, get a contractor to help you get started. They will assist with your paperwork and provide consultation to cater to your needs. It is also essential to keep in mind that qualified enrollees are customers of Eversource or United Illuminating. Make sure that you live in primary residences with 1 to 4 family owner-occupants. Lastly, RSIP has no application deadline, but it’s always better to start as early as possible.

Combining RSIP with Other Incentives

RSIP makes your leap to a solar-powered home more manageable, but you can extend its benefits even further in conjunction with these incentives. These are the incentives you can qualify to minimize upfront installation costs further and earn savings.

Net Metering Credits

The amount credited by your utility based on the extra electricity added to your grid is the Net metering credit. Calculating this amount comes from multiplying excess kilowatt-hour (kWh) fed into the electricity grid by standard electricity rate. For instance, if your solar panels produce 20 kWh, you can receive a credit worth 7.8 cents/h on your bill.

There is no net metering cap stated on the aggregated capacity of your utility’s service territory, unlike in Massachusetts. The remaining credits can be forwarded to the next month but wiped at the end of the year.

Federal Tax Credit

Another valuable incentive you can combine with RSIP is the Federal Tax credit. This rebate refers to the 26% tax credit to cover your solar system installation costs. For instance, if your overall solar installation costs amount to $20,000, you can receive a $5,200 tax credit. Your tax bill could be reduced to zero and receive the excess if you owed less than $5,200 for that year.

Low-Interest Financing

Connecticut also provides low-interest loans to help you get started going solar. The Energy Conservation Loan offers up to $25,000 for eligible residents. It can be payable for ten years, with interest rates between 0% and 6%.

You can also acquire Smart-E loans to finance home improvements, including solar system installation. They provide up to $40,000 with interest rates between 4.49% and 6.99% payable for up to 12 years.

For more information, please go to Green Power Energy.