Connecticut Solar for Commercial Businesses: A look at 2021 incentives and regulatory policy
Pro-business regulatory policy and state specific financial incentive programs have helped Connecticut become one of the most financially favorable states in the nation for commercial solar investment.
In addition to incentives afforded at the federal level, such as the Investment Tax Credit and the option to accelerate the depreciation to maximize solar’s tax advantage, business’s who go solar in Connecticut may also be eligible for great state incentives and policies.
Connecticut’s ZREC Program
Solar saves a business money by generating free electricity from the sun; electricity a business would otherwise purchase from the utility. However, Connecticut’s ZREC program provides additional compensation for a commercial customer with solar. A ZERC is a credit based on how much solar energy an installation produces. Owners of a commercial solar installation are paid a fixed price for every kilowatt-hour of solar energy they generate. To qualify for this incentive a ZREC project must be located in Connecticut, be no larger than 1,000 kW and not produce any emissions while generating electricity. ZERC’s are only awarded at certain times of the year so a business that is interested in getting this additional incentive needs to be ready to pounce when the ZREC window opens up. Have Genie do the leg work today in order to be ready!
Connecticut Net Metering Policies
Currently, Connecticut net metering polices are in flux and the policy as it is written today may be phased out. Net metering simply means that whenever your solar system generates more power than is immediately needed by your business, you are allowed to put that excess power back on the grid and pull it back off for your own use later. While, the new policy is unlikely to eliminate net metering, it will likely change the credit per kWh. Additionally, it will likely end a payout of excessive usage at the end of a year to a roll-over credit. Genie is highly recommending that businesses in Connecticut that wish to go solar to install a system now when policies are more favorable.
Connecticut has opted into Property Assessed Clean Energy (PACE) financing. This program allows eligible businesses to finance up to 100% of the project cost and pay the investment back as an assessment on your property tax. PACE financing can but a great way to ensure a solar project is cash flow positive quickly.
How Can Businesses Take Advantage of Connecticut’s Commercial Solar Incentives?
If your business is interested in exploring the financial savings and sustainability benefits of solar, Genie Solar is here to guide you through the process. Genie handles the design, installation and commissioning of a solar installation on your property – everything you need to get the system up and running and saving you money! We also do all the paperwork for permitting, interconnection agreements and incentives to ensure your installation goes smoothly and you maximize your ROI.
Reach out to Ryan in our Connecticut office at 860-338-2399 or [email protected] and visit our website at geniesolarenergy.com for more information.