Connecticut Solar Incentives and Programs

Connecticut, where solar is affordable and electric bills aren't.

How the Constitution State helps you ditch some of the highest electric rates in America.

CT Homeowners Have Every Reason to Go Solar

Connecticut residents pay some of the steepest electricity rates in the country — roughly 27 to 32 cents per kWh when you add up supply and delivery charges. That puts the state at 4th highest in the U.S., about 70% above the national average. Eversource and United Illuminating customers alike have watched their bills climb year after year, with rates spiking as much as 100% in January 2023 alone thanks to volatile natural gas prices.

The good news? Connecticut has stacked the deck in favor of solar. Between the RRES program, a 15-year property tax exemption, zero sales tax on solar equipment, and the CT Green Bank Smart-E Loan, going solar in Connecticut isn't just smart — it's practically a no-brainer. Over 106,830 installations and counting proves the point: roughly 10.7% of CT homes already run on sunshine.

Federal Solar Investment Tax Credit

The residential solar tax credit (Section 25D) expired on December 31, 2025, which means Connecticut homeowners can no longer claim the federal credit directly on their tax returns. But here's the thing — the savings haven't disappeared. They've just shifted.

Solar lease and PPA providers — as commercial entities — still qualify for the Section 48 Investment Tax Credit. That means the value of the credit is baked right into your monthly payment. You get the benefit of a lower rate without filling out a single tax form or waiting for a refund check. The savings are built into your solar plan from day one.

Solar Incentives and Rebates

✶Federal Solar Investment Tax Credit (Section 48 ITC)

The residential 25D solar tax credit expired December 31, 2025. Homeowners can no longer claim it on their taxes. However, through solar leases and PPAs, the Section 48 ITC (available to commercial entities) is passed through to you as lower monthly payments. The savings are built into your plan — no tax paperwork, no refund to wait for.

✶RRES Buy-All Tariff

Connecticut's Residential Renewable Energy Solutions (RRES) program replaced the old net metering system. Under the Buy-All Tariff, you sell 100% of your solar production to the grid at a locked-in rate of $0.3289 per kWh for 20 years. This is ideal if your home has great sun exposure but high daytime usage patterns. Both Eversource and United Illuminating customers are eligible.

✶RRES Netting Tariff

The RRES Netting Tariff lets you use your solar power on-site first and export any excess to the grid. There's a Solar Energy Adjustment charge of $0.0402 per kWh, but you still come out well ahead compared to paying Eversource or UI rates of 27-32 cents per kWh. This is the most popular option for homeowners who want to offset their own consumption.

✶Property Tax Exemption (15 Years)

Solar panels boost your home value, but Connecticut won't tax you for it. Solar equipment is exempt from property tax for up to 15 years in most Connecticut municipalities. You'll need to file Form M-44 with your local assessor by November 1. Most CT towns participate — check with your assessor's office to confirm.

✶Sales Tax Exemption (6.35%)

Connecticut waives its full 6.35% sales tax on solar equipment and installation. On a typical 11kW system costing around $30,700, that's nearly $1,950 you keep in your pocket. Use CERT-140 form to claim the exemption — your installer should handle the paperwork.

✶CT Green Bank Smart-E Loan

Need financing? The Connecticut Green Bank offers the Smart-E Loan program with up to $50,000 for solar installations. Terms range from 5 to 12 years with APRs between 4.49% and 6.99% — competitive rates available through participating CT lenders. It's one of the most accessible solar financing programs in the Northeast.

✶Energy Storage Solutions (ESS) Program

Adding a battery to your solar system? Connecticut's ESS program offers $250 to $600 per kWh as an upfront incentive, plus a performance-based incentive of $212 per kW per year. With Eversource and UI rates as high as they are, pairing solar with storage makes even more sense in Connecticut than most states.

Eversource vs. United Illuminating: CT's Two Utility Giants

Connecticut is served by two major utilities, and which one you have affects your solar savings. Eversource covers the majority of the state — about 1.2 million customers including Hartford and Stamford — with a supply rate around 12.64 cents per kWh (January 2026). United Illuminating serves roughly 325,000 customers in the New Haven and Bridgeport corridor at a supply rate of 13.695 cents per kWh.

But supply is only part of the story. Once you add delivery charges, distribution fees, and all those line items nobody understands, the all-in rate for both utilities lands between 27 and 32 cents per kWh. United Illuminating customers tend to pay on the higher end, which means faster solar payback — sometimes under 7 years in Bridgeport and New Haven. Either way, both Eversource and UI customers are paying too much to ignore solar.

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Frequently Asked Questions

✶What replaced net metering in Connecticut?+

Traditional 1:1 net metering closed to new residential customers in 2022. New solar customers now enroll in the RRES program, which offers two options: the Buy-All Tariff (sell all production at $0.3289/kWh for 20 years) or the Netting Tariff (use solar on-site, export excess with a $0.0402/kWh adjustment charge). Existing net metering customers are grandfathered until December 31, 2039.

✶Can I still claim the federal solar tax credit on my taxes in Connecticut?+

No. The residential solar tax credit (Section 25D) expired on December 31, 2025. Connecticut homeowners can no longer claim it directly. However, through solar leases and PPAs, the commercial Section 48 ITC is passed through as lower monthly payments — so you still get the savings without any tax paperwork.

✶How much does Eversource charge compared to United Illuminating?+

Eversource's supply rate is around 12.64 cents/kWh and United Illuminating charges about 13.695 cents/kWh (January 2026 rates). But supply is only part of your bill — once delivery and distribution charges are added, both utilities charge 27-32 cents/kWh all-in. UI customers generally pay on the higher end, resulting in faster solar payback periods.

✶What is the CT Green Bank Smart-E Loan?+

The Smart-E Loan is a financing program through the Connecticut Green Bank offering up to $50,000 for solar installations. With APRs between 4.49% and 6.99% and terms from 5 to 12 years, it's one of the most competitive solar financing options in New England. It's available through participating Connecticut lenders.

✶Is my solar system exempt from property taxes in Connecticut?+

Yes — in most Connecticut municipalities, solar equipment is exempt from property tax for up to 15 years. This means your home value increases without a higher tax bill. File Form M-44 with your local assessor by November 1 to claim the exemption. Most CT towns participate, but it's worth confirming with your assessor.

✶How much can I save with the RRES Buy-All Tariff?+

The RRES Buy-All Tariff locks in a rate of $0.3289 per kWh for 20 years. For a typical CT home with an 11kW system producing around 13,000 kWh annually, that's roughly $4,275 per year in guaranteed revenue from your solar production — regardless of how much electricity you use at home.

✶Does Connecticut offer incentives for solar battery storage?+

Yes. The Energy Storage Solutions (ESS) program offers both upfront incentives ($250-$600 per kWh) and performance-based payments ($212 per kW per year). With Connecticut's high electric rates, adding a battery can further reduce your reliance on Eversource or United Illuminating during peak pricing hours.

Your Eversource or UI Bill Isn't Getting Cheaper

Connecticut electricity rates are the 4th highest in America, running 70% above the national average. Rates spiked up to 100% in 2023 alone. Lock in a lower rate with solar before the next increase.

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What's Really on Your CT Electric Bill?

58% of your bill is hidden fees and charges!

Delivery Charges

The "customer charge," energy efficiency surcharge, and renewable energy fee that Eversource and UI tack onto every bill.

18%

of your bill

Distribution

Pays for the poles, wires, and infrastructure connecting the grid to your Connecticut home — a charge that keeps climbing.

26%

of your bill

Transmission

What your utility charges to transport power from the generation source to local substations. CT transmission costs have risen sharply since 2020.

14%

of your bill

Actual Supply

The electricity you actually use—just 42% of what you pay.

42%

of your bill

Solar Eliminates All These Charges

When you go solar, you no longer rely on the utility company to produce electricity—and no longer have to pay their ridiculous charges. Instead, you produce your own power with a low, locked-in solar rate.

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Is Solar Really Free in Connecticut?

While you can't technically get "free" solar panels, you can expect to pay less for solar than you're already paying Eversource or United Illuminating — and it costs nothing to make the switch.

You're swapping an unpredictable electric bill that spikes without warning (remember January 2023?) for a price-protected solar payment that's typically about 40% lower. Not exactly "free," but Connecticut homeowners aren't complaining.

Need a New Roof? Bundle and Save.

Our Roof + Solar Bundle makes it easy for Connecticut homeowners to get a new roof and solar at the same time. Since the roof is an essential part of the solar project, you save big by bundling — and still pay less than your current Eversource or UI bill.

Learn About Roof + Solar

Ready to Take Advantage of Connecticut Solar Incentives?

Get a free personalized quote and find out which CT programs and incentives apply to your home. Whether you're on Eversource or United Illuminating, our team will walk you through every dollar of savings.

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