2022 Solar Incentives Guide for Fairfield, CT - Tax Credits & Rebates

In this guide, we'll cover the latest solar incentives and rebates available in Fairfield. You'll learn about:
  • Local & State Solar Incentives
  • Federal Tax Credits (Updated for 2022 and beyond)
  • Ways to optimize your solar investment

Solar installers are experts in maximizing your solar tax credits and rebates.
Get a free quote from one of our trusted Fairfield solar installers to see how much you can save.

EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 11/09/2022

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What Solar Tax Credits, Incentives, and Rebates are Available in Fairfield?

Local Option - Property Tax Exemption for Renewable Energy Systems

Incentive Type:
Property Tax Incentive
Varies (local option)

Property Tax Exemption for Renewable Energy Systems

Incentive Type:
Property Tax Incentive
100% of value added by renewable system

Sales and Use Tax Exemption for Solar and Geothermal Systems

Incentive Type:
Sales Tax Incentive
100% exemption

Residential Solar Investment Program

Incentive Type:
Rebate Program
Customer-owned (EPBB):
Up to 10 kW PTC: $0.358/W
10 to 20 kW PTC: $0.207/W
Incentive is reduced accordingly for Design Factors below 75%. Minimum design factor is 60%.

Third-Party-Owned (PBI):
Up to 20 kW PTC: $0.03/kWh for 6 years
Minimum Design Factor 60%

Connecticut Green Energy Building Solutions

Incentive Type:
Green Building Incentive

Smart-E loans

Incentive Type:
Loan Program

Sales and Use Tax Exemption for Energy-Efficient Products

Incentive Type:
Sales Tax Incentive
100% exemption

Energy Conservation Loan

Incentive Type:
Loan Program
Single family homes (1-4 family units): $25,000
Landlord Loan: $40,000

The United Illuminating Company - Small ZREC Tariff

Incentive Type:
Solar Renewable Energy Credit Program
$98.18 per ZREC (for Year 6 round of solicitation)

Eversource - Small ZREC Tariff

Incentive Type:
Solar Renewable Energy Credit Program
$100.74 per REC (for Year 7 round of solicitation) Tariff for Small ZREC determined through PURA

Energy Efficiency Fund (Electric and Gas) - Residential Energy Efficiency Financing

Incentive Type:
Loan Program
$25,000

(Electric and Gas) Residential Rebate Program

Incentive Type:
Rebate Program
Ductless Heat Pump: $500
Refrigerators/Freezers, Room A/Cs, Dishwashers, Clothes Washers, Dehumidifiers: Incentive Included in Retail Price
Central A/C: $200
Air Source Heat Pumps: $500
Heat Pump Water Heater: $750
Lighting: Incentive Included in Retail Price
Geothermal Heat Pumps: $500-$1,500
High Efficiency Furnace, Natural Gas Boiler, and Boiler Circulator Pump: Instant Discounts of $25-$800

Local Option - Residential Sustainable Energy Program

Incentive Type:
PACE Financing
Locally determined
Learn more:

Federal Residential Renewable Energy Tax Credit

Incentive Type:
Personal Tax Credit
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

Source: https://www.dsireusa.org/


Solar incentives are designed to make renewable energy usage more affordable through financial incentives for individuals who install solar panels on their homes. These incentives could include upfront discounts, cash back or monthly credits towards your utility bill. Some incentives are handled by the federal government, some by the state of Connecticut and some by your utility company, county or municipality. Some solar incentives you might qualify for are:

  • Tax Credits: Tax credits lower, dollar-for-dollar, the total amount of tax you owe the government. These are different from tax deductions.
  • Rebates: Rebates, or partial refunds after a purchase, are normally applied prior to any solar tax credits being calculated. Solar rebates might be given by your local utility company, by your county or by your state.
  • Net Metering: Be sure to talk with your Fairfield utility company about signing a net metering contract. This allows you to receive credit towards your monthly utility bill for the value of excess energy your solar panels generate. You could receive either a dollar-for-dollar credit or a percentage of the value.
  • Tax Exemptions: Tax exemptions may come in two forms. First, there is sales tax exemption, applied when you purchase solar panels. The second is property tax exemption, which allows you to exclude the added value of your solar system when paying property tax on your home.

Federal Solar Incentives

Federal incentives are the kind of incentives that you are most likely to have some familiarity with. You've likely heard of the Federal Solar Investment Tax Credit, or ITC. The ITC is a tax credit equal to a predetermined percentage of the money you spend installing solar panels.

The ITC can be credited towards the value of a solar system installed on your primary or secondary residence in the United States. The solar panels must have been installed on a property you own after January 1, 2006 for you to be eligible for the credit. Initially, the ITC applied to 30% of all system installation costs (panels, accessories, equipment and labor), although the covered amount has fluctuated slightly over time between 26-30%. The amount you qualify for will depend on when your solar system was installed. There is no cap on the amount you can claim.

Curious how the ITC might apply to your specific situation? Reach out to your local Fairfield solar panel installer to get more information.

The Inflation Reduction Act, passed in August 2022, added more provisions to the ITC (as well as renaming it to the Clean Energy Credit). The Clean Energy Credit has increased the current credit up to 30% for solar installations undertaken between January 1, 2022 and December 31, 2032. After 2032, the percentage will be reduced slightly each year until the program expires in 2035. The expansion to the program also makes claiming credit for energy storage systems easier than ever before, starting in 2023.

Click here to learn more about the new Inflation Reduction Act. To understand how the new Clean Energy Credit will apply to you, reach out to your local Fairfield solar installers.

State & Local Solar Incentives

Some solar incentives are often also provided by state and local governments. Similar to federal incentives, these could include rebates, tax credits and more. These incentives — which may be handled by the state of Connecticut, or by your county or municipality — could be offered for only a limited time, or on an ongoing basis.

Next Steps for Installing Solar in Fairfield

You can qualify for solar incentives from the Connecticut government and the federal government, as well as from your local utility company. The increased availability of solar initiatives in the past 15 years has helped greatly increase nationwide adoption of solar energy. When you're ready to make the change to solar energy, talking to your local Fairfield solar panel installation expert is a great first step.

Best National Provider

SunPower

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EcoWatch's Fairfield, CT Solar Incentives FAQs

How can I find out if I qualify for certain solar incentives?

Typically, solar incentives apply to:

  1. a new solar system
  2. installed on property you own
  3. within the U.S.
  4. between the dates specified by a particular incentive.

Specific incentives, including ones handled by the Connecticut government or by your county/municipality, may have additional qualifications. Talk to your local Fairfield solar installer to find out what incentives your project will qualify for.

Who installs solar panels near me?

To learn about the best solar panel installation companies near you, read our article on the best solar companies in Fairfield.

What are the environmental benefits of switching to solar energy?

Solar energy is a renewable energy source — by changing where you get your energy, you help lessen the strain on our planet's resources. Solar panels can also reduce the CO2 emissions from your home by 200 pounds a year, or roughly 4,000 pounds in 20 years.

Can I receive incentives both towards the initial cost of solar panels, and later as reimbursement?

The order in which incentives are applied could vary depending on which incentives you are claiming but usually yes, you can claim multiple types of incentives for your solar project. Speak to your solar installer or a local tax professional to be sure you are claiming all possible incentives and applying them in the correct order.

Can I use a combination of solar and another type of renewable energy to power my home?

Yes, you can employ multiple types of renewable energy to power your home, such as a combination of geothermal and solar. You can also use both renewable energy sources and a non-renewable backup source of energy. You should discuss the details of your plan with your local Fairfield solar panel installer, to get an understanding of what will be needed and what types of incentives you may or may not qualify for.

Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.

Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.

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