To encourage the adoption of energy-efficient technologies, utilities, manufacturers, and local, state, and federal governments offer businesses financial incentives. The incentives include tax credits, rebates, income tax deductions, bonds, grants, and low-interest loans. Organizations may also receive sales tax exemptions on the purchase of eligible products or purchase qualifying items at a reduced price. Energy-efficient incentives vary by state and frequently change. Here’s a look at the incentives for Connecticut.
There can be many differences between states when it comes to incentives. If you have a national or multi-regional footprint, understanding the differences between state programs is key. Check out our blog feed for more state-by-state incentive and rebate programs
Incentives for Connecticut
Connecticut is offering the following energy-efficient incentives to businesses located in the state.
- Multifamily Credit Enhancement Fund: The program is managed by the Connecticut Green Bank to help individuals receive funding approval for energy-efficient projects. Credit enhancements are available to qualifying borrowers to reduce lender risk.
- Multifamily Catalyst Fund: The $2.5 million fund provides gap funding for health, energy, and safety projects on multifamily properties that require additional support and credit enhancement not offered by other CGB (Connecticut Green Bank) programs. Funds are administered in cooperation with the Housing Development Fund. Financing can either be secured or unsecured.
- PosiGen Solar Lease and Energy Efficiency Energy Savings Agreement: The CGB partnered with PosiGen Solar Solutions in 2015 to provide support to moderate and low-income residents who are planning to install solar and other energy efficient measures using a solar lease and energy savings agreement model. The program is available to all Connecticut homes, regardless of credit or income. It uses underwriting approaches to determine eligibility based on bill payment history, along with a few additional factors.
- Low-Income Multifamily Energy Loan: The LIME program provides financing for energy efficiency improvements that include installing solar and other renewable energy sources on multifamily properties. Up to 25% of the loan may be applied to structural and health/safety improvements, but there must be sufficient savings to cover the construction costs. Capital for Change is running the loan program.
- Commercial and Industrial Property Assessed Clean Energy (C-PACE): Introduced in 2014, the C-PACE program provides 100% of necessary funding, upfront, to support energy retrofits for commercial, industrial, multifamily, and non-profit buildings. Property owners are required to repay the loan amounts based on their property tax bill. Payments are spread over 25 years with low-interest rates typically ranging from 4.5 to 6.25%. It allows property owners to reduce energy usage costs, making it easier to gradually repay the loan. The energy-efficient projects also increase the property’s value and preserve the owner’s credit lines and capital for core investments.
- RGGI to EE measures: RGGI funds are directed to EE measures for low-income residents. These funds are newly directed to EE.
- There are additional funding opportunities within Connecticut, but they can be more difficult to apply for. They could be in their pilot phase or have run out of funds for the year. Be sure to ask your Incentive Rebate360 specialist to look into all available funding opportunities.
Commercial Incentive and Rebate Recovery Services
Contact Incentive Rebate360 to learn more about the energy-efficient incentives in your state or if you have questions about the ones available in Connecticut. We will help you find applicable incentives and take care of submitting all required paperwork. Call 480-653-8180, email [email protected], or schedule a call that fits your needs by clicking the button below.
Reference: American Council for an Energy-Efficient Economy (2023). State and Local Policy Database. ACEEE. https://database.aceee.org/state/financial-incentives