Federal Investment Tax Credit (ITC)
When you purchase your solar system, you are eligible for a 26% Federal Investment Tax Credit (ITC).
With a lease or Power Purchase Agreement (PPA), the financing company owns the system, so all of the benefits from federal tax credits and State incentives will go to them and be built into your monthly payments.
You should consult with your tax advisor to determine the most suitable course of action for you.
Note that the interest paid on secured loans (such as home equity loans and home equity lines of credit) may be tax-deductible and yield significant value if you have a large enough tax liability.
Learn more about the tax credit by clicking here
Anticipating the impact
For grid-connected solar systems, your electric utility will require that you enter into an interconnection agreement, which sets forth the minimum insurance requirements. In Connecticut, that minimum is $300,000 of liability insurance – a standard homeowner’s insurance policy should meet this requirement.
For a more precise estimate of the insurance impact of your system, contact your homeowner’s insurance agent.