Connecticut's 4.02¢/kWh Solar Energy Adjustment, explained.
New 2026 netting projects in Connecticut now include a fixed Solar Energy Adjustment on every kilowatt-hour produced. Here is what changed, who it affects, and how to compare Netting vs. Buy-All before you sign a solar proposal.
Connecticut's 2026 solar energy adjustment adds a 4.02¢/kWh charge to solar customers’ bills — but solar still saves homeowners thousands annually compared to full grid rates. This page explains what the adjustment means, how it affects your savings, and why going solar in 2026 remains a strong financial decision for CT homeowners.
What changed for new Connecticut solar projects?
Starting in 2026, new Connecticut solar systems enrolling in the Netting tariff are subject to a $0.0402 per kWh Solar Energy Adjustment — a charge applied to every kilowatt-hour the system produces.
That is a meaningful jump from the first Solar Energy Adjustment applied in 2025. This guide breaks down what the charge is, how it affects savings, and why solar can still make financial sense when the proposal is modeled correctly.
What exactly is the Solar Energy Adjustment?
The Solar Energy Adjustment is an on-bill charge established under Connecticut's Residential Renewable Energy Solutions program. It appears as a separate line item on an your utility bill.
The important detail: the charge applies to all solar production, not only excess electricity exported to the grid. Whether your home uses the solar energy instantly, stores it in a battery, or exports it, the production meter records it and the 4.02¢/kWh charge is calculated from that production.
Once your Solar Energy Adjustment rate is established, it is locked in for the full 20-year tariff term. It does not increase over time.
How the charge affects solar savings.
For a typical your utility residential customer, the total retail cost of electricity includes supply, delivery, transmission, and public-benefit charges. In early 2026, that full blended cost is roughly 30¢/kWh for many homeowners.
| 2026 netting calculation | Approx. value |
|---|---|
| Full your utility retail rate | ~30¢/kWh |
| Solar Energy Adjustment | − 4.02¢/kWh |
| Net savings per kWh produced | ~26¢/kWh |
For an average 8 kW system producing about 9,500 kWh per year, the Solar Energy Adjustment would be about $382/year. At a full retail rate near 30¢/kWh, the gross annual offset would be about $2,850/year, leaving roughly $2,468/year in net electricity savings before system cost and financing details.
How the numbers can look over 25 years.
SunPol's prepaid solar lease uses one upfront payment, then $0 monthly lease payments for 25 years. The exact cost depends on sun exposure, system size, roof layout, and equipment, but a typical prepaid lease may fall in the $20,250 to $32,400 range.
The examples below use an 8 kW system producing about 9,500 kWh/year. They are illustrations, not a guarantee. A final proposal should be modeled for your roof, utility usage, and tariff selection.
If utility rates stay flat
| Net annual savings after adjustment | ~$2,468/year |
| 25-year electricity savings | ~$61,700 |
| Prepaid lease cost range | − $20,250 to $32,400 |
| Estimated 25-year savings | $29,300 – $41,450 |
If rates rise 3% annually
| Year 1 net savings | ~$2,468/year |
| Year 10 net savings | ~$3,337/year |
| Year 25 net savings | ~$5,412/year |
| 25-year electricity savings | ~$94,360 |
| Estimated 25-year savings | $61,960 – $74,110 |
Because the 4.02¢ Solar Energy Adjustment is fixed while retail electricity rates can change, the relationship between those numbers matters. If utility rates increase, the fixed adjustment becomes a smaller share of the avoided retail cost. If rates stay flat, the adjustment still needs to be included in the savings model.
- End of lease option 1: purchase the system at fair market value and continue with ownership.
- End of lease option 2: renew for five more years, with monthly or prepaid rent depending on the extension terms.
- End of lease option 3: request removal if your needs have changed and you do not want to continue.
Buy-All removes the Solar Energy Adjustment from the equation.
With the Buy-All tariff, 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 your utility as normal. The Solar Energy Adjustment does not apply to Buy-All.
| Annual Buy-All revenue: 9,500 kWh × $0.3289 | ~$3,125/year |
| 20-year fixed revenue | ~$62,510 |
| Prepaid lease cost range | − $20,250 to $32,400 |
| Estimated 20-year value after lease cost | $30,110 – $42,260 |
The trade-off is simple: Buy-All gives predictable fixed revenue and avoids the adjustment. Netting can deliver more upside if electricity rates climb, but it exposes your savings projection to future rate changes.
How the charge has changed over time.
The Solar Energy Adjustment did not exist when RRES launched. It was introduced at a minimal rate in 2025, then increased for 2026 netting applications.
No Solar Energy Adjustment
No per-kWh production charge for netting projects during this period. REC treatment varied by program year.
$0.005/kWh first adjustment
The adjustment was introduced at roughly half a cent per kWh. For most systems, the bill impact was relatively small.
$0.0402/kWh for new netting projects
The adjustment became a material factor and should be included in every new netting proposal.
Which tariff makes sense in 2026?
Connecticut's RRES program gives homeowners two primary tariff paths. The Solar Energy Adjustment applies to Netting, not Buy-All.
| Feature | Netting | Buy-All |
|---|---|---|
| How it works | Home uses solar first; excess exported for retail-rate credits. | All production is sold to the utility at a fixed rate. |
| 2026 compensation | Full retail-rate value, less the 4.02¢/kWh adjustment. | $0.3289/kWh fixed for 20 years. |
| Solar Energy Adjustment | Applies to all production. | Does not apply. |
| REC rate | $0/kWh for 2026 netting projects. | Included in the fixed Buy-All rate. |
| Best fit | Homeowners comfortable with retail-rate exposure and potential upside if rates rise. | Homeowners who prefer guaranteed, predictable revenue. |
Want to see the real numbers for your home?
We'll model projected savings under both Netting and Buy-All with the Solar Energy Adjustment included.
Does a battery eliminate the charge?
No. The charge is based on the production meter, which records every kWh your panels generate. It applies whether that power is used instantly, stored in a battery, or exported.
Battery backup can still be valuable in Connecticut for outage protection, evening energy use, and resilience during storms. It just does not avoid this particular Solar Energy Adjustment.
Why solar remains a strong Connecticut investment.
The 4.02¢/kWh charge is real and should be factored into every estimate. But it is a fraction of the total retail electricity rate many homeowners are trying to offset.
Full retail rate matters
Solar offsets more than supply. Delivery, transmission, and public-benefit charges are part of the avoided bill value.
The adjustment is fixed
Your Solar Energy Adjustment rate is locked for the tariff term, while retail electricity costs can change over time.
Property tax exemption
Connecticut solar installations remain exempt from local property tax assessments.
Sales tax exemption
Solar equipment remains exempt from Connecticut's 6.35% sales tax.
Netting credits still work
Excess production can still earn credits that help offset nighttime and cloudy-day usage.
Proposal quality matters
The installer should account for the 2026 charge and compare available tariff options clearly.
What this means for your installer's proposal.
your utility notes that customers should ensure the Solar Energy Adjustment is considered in savings estimates from installers. In plain English: if a 2026 proposal does not mention the adjustment, ask for updated numbers.
At SunPol Solar, every netting proposal includes the 4.02¢/kWh charge from the start. We can also model Netting and Buy-All side by side so you can choose the option that fits your risk tolerance.
- Transparent savings estimates with the 2026 charge included.
- Netting vs. Buy-All analysis for your specific usage profile.
- Financing comparisons across prepaid lease, PPA, and purchase options.
- Local Central Connecticut guidance from a licensed, insured installer.
Frequently asked questions.
Quick answers about the 2026 Solar Energy Adjustment and Connecticut tariff options.
What is the Solar Energy Adjustment charge?
It is a per-kWh on-bill charge applied to all electricity a solar system produces. For new 2026 netting projects, the rate is $0.0402/kWh and is fixed for the tariff term.
Does the 4.02¢/kWh charge apply to my existing solar system?
No. Systems installed and enrolled before 2026 keep their existing terms. The 2026 rate applies to new netting applications in 2026.
Will a battery help me avoid the Solar Energy Adjustment?
No. The adjustment is based on production, not export. Batteries can provide backup power and flexibility, but they do not eliminate the production-based charge.
Is solar still worth it with the new charge?
It can be, but the answer depends on system design, usage, roof conditions, tariff choice, and financing. The charge should be included in every savings model before you compare proposals.
What is the difference between Netting and Buy-All?
Netting lets your home use solar first and receive credits for excess production, but the Solar Energy Adjustment applies. Buy-All sells all production at a fixed utility rate and the adjustment does not apply.
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