Solar in Connecticut??

For many years in Connecticut and around the U.S., we have heard about the promise of Solar Photovoltaic PV electrical systems.  In areas like California, where there is a large concentration of solar PV Photovoltaic, homeowners believe that "oh yeah they have much more sun than we do"!  Yes, Solar is much more mainstream in areas like California, with an abundance of solar installations. Yes, it has something to do with great sun and very few cloudy days, but is largely attributed to their utility rate structure that penalizes larger users of electricity by having tiered rates that go up as usage goes up.  This is a big incentive to install a solar system, in order to knock out the higher tiers, at the very minimum.

Solar installations in CT.  CL&P in April 2008 disclosed their estimated historic residential interconnection (solar connections) numbers as follows:

2004            3

2005           57

2006           80

2007         227
2008         ??? probably more than 1000, although numbers will be skewed, because interconnection is being delayed until Jan 2009 to take advantage of the Residential Renewable Energy Tax Credit ITC.

These figures do not include UI's interconnections.

Check out more solar fun facts or solar lease facts or information about the financial analysis of a solar system in CT.  You can contact us at info.CTSolarlease@gmail.com with comments questions, photos etc.  Or you can also use the contact form to request a free solar evaluation by a qualified, State of CT approved, solar installer. You will be contacted within 48 hours of submitting this form.

We are not California in terms of installation numbers, but Solar in CT was going strong until September 2008 when the US economy started to fall apart.  This definitely puts the brakes on the solar business in CT for the time being.  The approval of the Residential Renewable Energy Tax Credit, ITC, which during another time would have helped Solar explode around the Country, was lost in the headlines. The elimination of the direct rebate program by CCEF was a nail in the coffin for CT Homeowners interested in Solar, at least for now.  Oil and gas prices tumbling didn't help either.  Oil prices settled down to Q4-2006 - Q1-2007 levels after more than doubling in the last year.

The Future

Our site will keep you informed on programs offered by Connecticut's Clean Energy Fund CCEF and the Federal government incentives.  While there is currently no residential rebate money left for residents in 2008 or 2009. CCEF's Board is supposed to revisit this issue in 2010.  What I can't tell you is whether public pressure and/or lack of participation in the CT Solar Lease program will persuade CCEF to change its position sooner.  So keep your cards and letters coming!!!!

The longer-term issue is what impact the rebate situation has had on Solar companies making an investment in CT's Solar future.  In short, this expansion has come to a virtual standstill!  The aggressive rebate brought in Solar Companies who hired employees, rented or bought buildings, bought vehicles, bought materials, trained employees and contributed to not only the environmental future of the State but also to the State’s economic future.

I can tell you that there were three to four fairly large solar installation companies ready to make the plunge into the CT market, and they had already started to advertise for employees when the October dive occurred.  What this means is that if there is ever going to be a meaningful surge in solar installs in CT, we have to have qualified companies, in this area, that can install and support a higher number of installations. 

The Feds

The good news, during the current financial crisis that we find ourselves in, is a bill called Residential Renewable Energy Tax Credit which was included as part of the Emergency Economic Stabilization Package enacted on 10/3/08.  In short, what this program does for you is it increases the current 30% of system not to exceed $2000 tax credit for PV systems "placed in service" after Jan 1, 2009.  The new plan removes the not to exceed $2000 aspect of the current law.  Now be careful on this one, because if you are retired or for some other reason do not have tax liability at the end of the year in which your solar system is "placed in service," the credit may not be as beneficial to you.  I strongly recommend consulting a tax advisor about this new tax law and tax carry-forwards or carry-backs to future or previous years.  Be careful, because many tax advisors may not be familiar with the bill since it is so new.  Please refer them to this link www.Dsire.org, which provides information on most renewable programs across the U.S.  Tax liability means taxes owed before adjustments for withholding, etc.

The latest official word:  On 11/18/08 installers received this memo from ccef:

On behalf of CCEF, I regret to inform you that we are no longer accepting applications for the Residential Rebate Program at this time.   Even though funds for the Rebate Program are exhausted, there are adequate funds for our Solar Lease Program.  For information on the solar lease program’s support materials for installers please check out our website at www.CtSolarLease.com .

Angela Perondi-Pitel

Project Manager

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On the commercial side of solar business, CCEF continually made their program less attractive during the year by reducing the rebate amount and the maximum system they would rebate for.  This became a roller coaster ride for Companies in CT, as well as installers, integrators and Power Purchase Agreement providers, many of whom planned on setting up major businesses in CT!  Not anymore!