CT Solar Lease Program to Reopen for New Applications?

After disappointing news that energy legislation supporting PV incentives in Connecticut wasn’t moving forward, I am very happy to report some optimistic news in the state for solar programs.  The CT Solar Lease Program may be accepting new applications subject to CT Clean Energy Fund (CCEF) Board approval.  The board is expected to meet in late July so stay tuned for more details.  Rebates are reported to be lower than the current lease program; however, the economics remain powerful and will offer homeowners the opportunity to make a smart energy investment.

A CT Solar Lease allows homeowners with moderate incomes the ability to add solar energy to their homes at no upfront cost and see the savings almost immediately.   The lease program’s investors will own the solar system, but the system would be installed on a resident’s roof.  The CT Solar Lease program will be able to lease it at an affordable rate because they will take advantage of the state’s solar rebates and federal tax credit.

A CT Solar Lease does have an income requirement based on the town, number of people in the household and household income. To qualify, a family household income must be 200% or less of the area’s median income and meet debt to income qualifications. The program requires no down payment and has been designed to provide homeowners with the lowest fixed monthly payment for 15 years.  At the end of the 15 year term, you can decide to buy the system at the current depreciated value, extend the lease for another 5 years at a significantly reduced rate, or have the system removed at your own expense with no future obligation.

The CT Solar Lease program is one of the earliest, if not the first, residential leasing programs in the United States, launching before Solar City and SunRun.   Solar City and SunRun offer what is more commonly called a Power Purchase Agreement where they purchase, install, and maintain the solar panels on a resident’s behalf.  The CT Solar Lease program will not maintain the solar installations. However, they will aggregate and sell the Renewable Energy Credits (RECs) which are generated by these systems.  The proceeds can be used by residents for maintenance of the solar installations including inverter replacement and out of warranty repairs.

In my opinion, this is a really innovative financing arrangement that allows solar installations to be accessible to a wider range of Connecticut residents.  Just to give you an idea of what a solar lease would look like: An average system is about 5 KW and would cost less than a $120 per month.  This is a locked in price over the next 15 years!  In the last 5 to 10 years, the price of electricity has risen by an average of 7 to 11% in Connecticut, Massachusetts, and Rhode Island.   This is a great opportunity for Connecticut homeowners to take advantage of solar incentives.  I will make sure to report the outcome after the upcoming Connecticut Clean Energy Fund board meeting in late July.