Local Option - Residential Sustainable Energy Program (Connecticut)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Connecticut

Name Local Option - Residential Sustainable Energy Program
Incentive Type PACE Financing
Applicable Sector Residential, Property Owners
Eligible Technologies Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Siding, Roofs, Comprehensive Measures/Whole Building, Custom/Others pending approval, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps, Yes; specific technologies not identified
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs

Funding Source Locally determined

Terms Locally determined
Program Administrator Programs administered locally

Date added to DSIRE 2011-08-07
Last DSIRE Review 2014-12-12

References DSIRE[1]


NOTE: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money from the local government to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Connecticut has authorized local governments to establish such programs, as described below. (No local governments in Connecticut currently offer residential PACE financing.)

In July 2011, Connecticut passed omnibus energy legislation. In section 100, the state authorizes municipalities to create "Sustainable Energy Programs" within their respective jurisdictions (known as PACE). Municipalities that wish to establish Sustainable Energy Programs must first declare the public need for a program, then publish its intention to create a program via public notice and solicit and consider public comment. Once a program is established, the municipality is authorized to enter into a contractual assessment on the property for the amount required to complete the requested energy upgrades. The assessment is considered a lien on the property and the municipality may collect payments in a manner consistent with how the municipality collects property taxes. To finance the programs, municipalities may issue bonds, secure private funding, or state or federal funds (or a combination of these).

In June 2012, Connecticut passed the Commercial PACE or "C-PACE," which is specific to non-residential property owners. The Clean Energy Finance and Investment Authority is working to administer the C-PACE financing program.

Incentive Contact

Contact Name Information - CEFIA
Department Clean Energy Finance and Investment Authority

Address 865 Brook Street

Place Rocky Hill, Connecticut
Zip/Postal Code 06067
Phone (860) 563-0015

Email info@ctcleanenergy.com
Website http://www.ctcleanenergy.com

Authorities (Please contact the if there are any file problems.)

Authority 1: Conn. Gen. Stat. § 7-121n
Date Effective 2011-07-01
Date Enacted 2011-07-01

Authority 2: S.B. 501
Date Effective 2012-06-15
Date Enacted 2012-06-15

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"