Connecticut's New 4.02¢/kWh Solar Energy Adjustment — What CT Homeowners Need to Know
Starting in 2026, Connecticut introduced a significant change to its residential solar program. New solar systems enrolling in the Netting tariff are now subject to a $0.0402 per kWh Solar Energy Adjustment — a charge applied to every kilowatt-hour your panels produce.
That's a brand-new charge — there was no Solar Energy Adjustment for projects that enrolled between 2022 and 2024. Projects applying in 2025 were the first to see one, at just half a cent ($0.005/kWh). Now, in 2026, it jumped to 4.02¢. Naturally, it's generating a lot of questions from homeowners considering solar. This guide breaks down exactly what the charge is, who it affects, and — most importantly — whether solar is still a smart investment in Connecticut.
Already have solar? This charge does not affect existing systems. If your solar was installed and enrolled before 2026, your current terms remain in place. The $0.0402/kWh rate only applies to new netting projects submitting applications in 2026.
What Exactly Is the Solar Energy Adjustment?
The Solar Energy Adjustment is an on-bill charge established by Connecticut's Public Utilities Regulatory Authority (PURA) as part of the Residential Renewable Energy Solutions (RRES) program. It appears as a separate line item on your Eversource or United Illuminating bill.
Here's what makes it important to understand: the charge applies to all solar production — not just the electricity you export to the grid. Whether your home consumes the solar energy directly or it flows back to Eversource, the 4.02¢ per kWh fee is calculated on your total production meter reading.
According to Eversource, the charge is "used to offset program costs." PURA's rationale is that even solar homeowners rely on grid infrastructure — the wires, poles, and transformers that deliver electricity when the sun isn't shining. The Solar Energy Adjustment is their mechanism for ensuring solar customers contribute to maintaining that shared infrastructure.
One critical detail: once your Solar Energy Adjustment rate is established, it's locked in for your full 20-year tariff term. It won't increase over time. So while 4.02¢/kWh feels significant today, your rate stays fixed regardless of what happens to electricity costs.
2026 Solar Energy Adjustment — Key Numbers
The Real Math: How It Affects Your Savings
Numbers don't lie. Let's walk through the actual economics. Remember, your Eversource bill isn't just the supply rate — it includes supply, delivery, transmission, and public benefits charges. Combined, the full retail rate for a typical Eversource residential customer is approximately 30¢/kWh as of early 2026:
Per-kWh Savings Calculation (2026 Netting)
For an average 8kW solar system in Connecticut producing approximately 9,500 kWh per year, that breaks down to:
- Annual Solar Energy Adjustment cost: 9,500 kWh × $0.0402 = ~$382/year
- Annual electricity savings at full retail rate: 9,500 kWh × $0.30 = ~$2,850/year
- Net annual savings:~$2,468/year after the adjustment
Prepaid Lease Example: 20-Year Savings Even If Rates Stay Flat
Let's look at a conservative scenario using SunPol's prepaid solar lease — one upfront payment, then $0/month for 20 years. The cost depends on sun hours, system size, and equipment, but typically ranges from $20,250 to $32,400.
Here's the key question: even if Eversource rates never increase from today's ~30¢/kWh — does the math still work?
20-Year Prepaid Lease vs. Eversource (Rates Stay the Same)
Read that again: even in the most conservative scenario possible — where Eversource rates never rise a single penny over 20 years — a prepaid lease still puts $16,960 to $29,110 back in your pocket after the Solar Energy Adjustment and your lease cost.
Now let's look at what happens if electricity rates increase just 3% per year — a modest assumption based on historical trends:
20-Year Prepaid Lease vs. Eversource (3% Annual Rate Increase)
Notice the difference: because the 4.02¢ Solar Energy Adjustment is locked in while the full retail rate climbs, your savings accelerate over time. By year 20, each kWh saves nearly twice what it does in year 1. That's the advantage of a fixed charge against a rising rate.
Buy-All Option: Fixed Revenue for 20 Years
With the Buy-All tariff, there's no Solar Energy Adjustment at all. Instead, every kWh your system produces is sold to the utility at a fixed rate of $0.3289/kWh for 20 years — and you continue buying electricity from Eversource as normal. The benefit is simplicity and predictability: your revenue never changes regardless of what happens to electricity rates.
20-Year Prepaid Lease with Buy-All Tariff
The Buy-All path gives you a guaranteed, predictable return with zero exposure to the Solar Energy Adjustment. You'll still pay your normal Eversource bill, but the fixed $0.3289/kWh revenue from your panels offsets it significantly. The trade-off: if electricity rates rise substantially over 20 years, the Netting option could deliver higher total savings — but Buy-All removes that uncertainty entirely.
That's the power of the prepaid lease model: your largest expense is locked in on day one, and for the entire 20-year term, we take care of all system service and maintenance — you don't have to worry about repairs or upkeep. If utility rates happen to increase over time (as they historically have), your savings grow even further.
And when the 20-year lease term ends, you have three options:
- Purchase the system at fair market value (FMV) — own it outright and continue saving with no further payments.
- Renew for 5 more years — choose monthly payments or a prepaid rent for the 5-year extension and get an additional 5 years of system protection and coverage.
- We remove the system at no cost to you — if your needs have changed, we'll take the panels down and you owe nothing.
Compare all three financing options →
And here's what makes solar especially compelling: your Solar Energy Adjustment is fixed at 4.02¢ for 20 years. It never increases. Meanwhile, Eversource's full retail rate has historically trended upward over time. If that pattern continues, the gap between what you'd pay Eversource and what you lose to the Solar Energy Adjustment would widen in your favor every year.
How the Charge Has Changed Over Time
The Solar Energy Adjustment didn't exist when the RRES program launched. It was introduced in 2025 at a minimal rate, then increased significantly for 2026:
No Solar Energy Adjustment
There was no per-kWh production charge for netting projects during this period. Eversource customers in 2022 also received REC payments of $0.0318/kWh, which were an added bonus. REC rate dropped to $0 in 2024.
$0.005/kWh — First Solar Energy Adjustment
The Solar Energy Adjustment was introduced for the first time. At half a cent per kWh, it was barely noticeable on most bills. REC rate remained at $0.
$0.0402/kWh
Significant increase. REC rate for 2026 netting projects is $0. The adjustment is now a material factor in savings calculations and should be accounted for in every installer's proposal.
Netting vs. Buy-All: Which Path Makes Sense in 2026?
Connecticut's RRES program gives homeowners two choices. The Solar Energy Adjustment only applies to Netting — not Buy-All. Here's how they compare for 2026:
| Feature | Netting | Buy-All |
|---|---|---|
| How it works | Home uses solar first; excess exported for retail-rate credits | All production sold to utility at fixed rate |
| 2026 compensation rate | Full retail rate (~30¢/kWh including supply, delivery, transmission & public benefits), fluctuates over 20 years | $0.3289/kWh, fixed for 20 years |
| Solar Energy Adjustment | 4.02¢/kWh on all production | Does not apply |
| REC rate (2026) | $0/kWh | Included in $0.3289 rate |
| Rate risk | Savings grow if electricity rates rise | Fixed rate — no upside if rates climb |
| Best for | Homeowners who expect rising electricity rates | Homeowners who prefer guaranteed, predictable income |
PURA designed both tariffs to deliver a similar 9–11% return on investment. The right choice depends on your risk tolerance and how you feel about the direction of electricity rates based on historical trends.
Your solar installer should model both scenarios and show you projected 20-year returns under each tariff. If they only present one option without explaining the other, ask why. Learn how to vet a solar company →
Want to See the Real Numbers for Your Home?
We'll model your savings under both Netting and Buy-All — with the Solar Energy Adjustment fully accounted for. No surprises.
Get My Free Solar QuoteDoes Battery Storage Eliminate the Charge?
No. This is a common misconception worth addressing directly. The Solar Energy Adjustment is calculated based on your production meter — the meter that records every kWh your panels generate, regardless of where that energy goes. Whether you consume it instantly, store it in a battery, or export it to Eversource, the charge applies to all production.
That said, home battery backup still provides significant value in Connecticut — just not by avoiding this particular charge. Batteries protect you during Eversource outages (which averaged 3+ per year for many CT towns during recent storm seasons), allow you to use stored solar energy during peak evening hours, and may qualify for additional incentives through Connecticut's Energy Storage Solutions program.
Why Solar Is Still a Strong Investment in CT
The 4.02¢/kWh charge is real and should be factored into every savings estimate. But context matters. Here's the bigger picture:
- Eversource's full rate is approximately 30¢/kWh: When you add up supply (12.64¢), delivery, transmission, and public benefits charges, the total cost per kWh is roughly 30¢. That's what you're offsetting with solar — not just the supply portion. The 4.02¢ adjustment is a fraction of that total.
- The adjustment is fixed; electricity rates aren't: Your 4.02¢ charge stays the same for 20 years while every component of your Eversource bill continues its upward trend. The value of solar grows every year the gap widens.
- CT property tax exemption still applies: Solar installations remain exempt from property tax assessments. Your home value increases without a higher tax bill.
- CT sales tax exemption still applies: Solar equipment is exempt from the 6.35% sales tax, reducing your total system cost.
- Net metering credits still work: Excess production exported to the grid earns retail-rate credits that offset your usage during nights and cloudy days.
- Home value increase holds: Solar-equipped homes in Connecticut still sell for approximately 4.1% more than comparable homes.
The Solar Energy Adjustment reduces your savings — it doesn't come close to eliminating them.
At today's full retail rate of approximately 30¢/kWh, every kWh your system produces still saves you roughly 26¢ net after the adjustment. That translates to approximately $2,468 in annual savings for a typical 8kW system. Because the 4.02¢ charge is locked in while electricity rates have historically trended upward, the math has the potential to improve over time. The bottom line: solar remains one of the best financial decisions a Connecticut homeowner can make.
What This Means for Your Installer's Proposal
Eversource's own website now states that "customers should ensure this is considered in savings estimates from installers." That's a direct instruction from the utility: make sure your installer is accounting for the Solar Energy Adjustment in their projections.
If you receive a solar proposal in 2026 that doesn't mention the Solar Energy Adjustment, that's worth noting. It likely means either the company isn't aware of the updated 2026 program rules, or their solar proposal design hasn't been updated yet to reflect the new charge. Either way, it's worth asking about — you want to make sure your projected savings are based on the current program structure.
At SunPol Solar, every proposal we generate for a netting project includes the 4.02¢/kWh charge in our savings calculations from the start. We also model both the Netting and Buy-All tariffs so you can compare them side by side and make an informed decision. Read our full CT solar investment guide →
How SunPol Solar Helps You Navigate the New Rules
Program changes like the Solar Energy Adjustment are exactly why working with a local, knowledgeable installer matters. Here's what we do differently:
- Transparent proposals: The 4.02¢/kWh charge is built into every savings estimate we provide. No hidden surprises when your first Eversource bill arrives.
- Buy-All vs. Netting analysis: We model both tariff options for your specific energy profile so you can choose the path with the best return.
- Financing options that account for the new reality: Our prepaid lease , PPA, and cash purchase options all factor in the 2026 program changes. Compare all financing →
Frequently Asked Questions
It's a per-kWh on-bill charge applied to all electricity your solar system produces. For new netting projects applying in 2026, the rate is $0.0402/kWh. It appears as a "Solar Energy Adjustment" line item on your Eversource or UI bill. The rate is fixed for your full 20-year tariff term and is used to offset RRES program costs.
No. If your system was already installed and enrolled in the RRES program or a prior net metering agreement, your terms remain unchanged. The $0.0402/kWh rate applies only to new netting projects that submit applications starting in 2026. Systems enrolled in earlier years keep their original Solar Energy Adjustment rate (e.g., $0.005/kWh for 2025 projects).
No. The charge is based on your production meter — it measures every kWh your panels generate regardless of whether that energy is consumed on-site, stored in a battery, or exported. Batteries provide outage protection and peak-shaving benefits, but they do not reduce or eliminate the Solar Energy Adjustment.
Yes. The full Eversource retail rate — including supply, delivery, transmission, and public benefits — totals approximately 30¢/kWh as of early 2026. Each kWh your system produces still nets roughly 26¢ in savings after the adjustment. And because the 4.02¢ charge is fixed while electricity rates have historically trended upward, your net savings have the potential to grow over time. Over 20 years, solar still delivers substantial returns.
With Netting, your home uses solar power first and exports excess for retail-rate credits. The 4.02¢/kWh Solar Energy Adjustment applies to all production. With Buy-All, everything your system generates is sold to the utility at a fixed $0.3289/kWh for 20 years, and you buy electricity from Eversource normally. The Solar Energy Adjustment does not apply to Buy-All. PURA designed both to deliver a similar 9–11% return on investment.
Get a Proposal That Accounts for the New Rules
We'll show you projected savings under both Netting and Buy-All tariffs — with the Solar Energy Adjustment built in from the start.
Get My Free Solar QuoteHave questions? Call us: (860) 747-6527




