Connecticut Solar Incentives 2026: Every Dollar You Deserve
Your Family's Money Should Work for You — Not Eversource
There's a number you should know: $54,000
That's roughly what the average Connecticut household will pay Eversource over the next 20 years at current rates of 26–32¢ per kilowatt-hour. Fifty-four thousand dollars — not invested, not saved for your kids, not spent on anything you actually chose. Just gone. Automatically. Every month. For two decades.
And every year, that number gets worse. Eversource raised rates 29% in January 2026. They didn't ask you. They didn't give you a choice. They just sent a bigger bill.
But here's what most Connecticut homeowners don't realize: the state of Connecticut has built one of the strongest solar incentive programs in the country. Sales tax exemptions. Property tax exemptions. Production credits locked for 20 years. Battery incentives that can exceed $33,000. These aren't theoretical — they're real programs, available right now, designed to make solar financially compelling for every homeowner in the state.
Even without the federal Investment Tax Credit — which expired December 31, 2025 — Connecticut's state incentives, combined with the savings from generating your own power, make going solar one of the smartest financial moves you can make in 2026.
This page breaks down every Connecticut solar incentive available to you. Real numbers. Real math. No guesswork.
1. Connecticut Sales Tax Exemption (6.35%)
What it is: All solar energy equipment purchased and installed in Connecticut is exempt from the state's 6.35% sales tax. This includes panels, inverters, racking, wiring — everything that goes on your roof.
What it saves you: On a typical residential solar system costing $20,000–$30,000, the sales tax exemption saves you $1,270–$1,905. This savings is automatic — it's built into your price, not something you need to apply for or claim later.
Math on a 10kW system:
- System cost: $27,000 (at ~$2.70/watt)
- Sales tax you'd normally owe: $27,000 × 6.35% = $1,714.50
- With the exemption: $0 in sales tax
That's $1,714.50 you keep in your pocket before the system even produces its first kilowatt-hour.
2. Connecticut Property Tax Exemption (100%)
What it is: Solar panels increase your home's value — multiple studies confirm that homes with solar sell for approximately 4% more than comparable homes without. In Connecticut, the added value from solar is 100% exempt from property taxes. Your home is worth more, but your tax bill stays the same.
What it saves you: This exemption is permanent for as long as the solar system is on your home. On a $350,000 home where solar adds roughly $14,000 in value (4%), you'd typically owe an additional $350–$500+ per year in property taxes at typical CT mill rates. With the exemption, you owe nothing extra.
Over 20 years: That's $7,000–$10,000+ in avoided property tax increases — money you never see on a bill because the exemption prevents the increase from ever happening.
This is one of the most overlooked solar incentives in Connecticut. Your home's resale value goes up. Your property taxes don't.
3. RRES Netting Tariff — Net Credits at Retail Rate
What it is: Connecticut's Residential Renewable Energy Solutions (RRES) program replaced the state's old net metering system. Under the Netting Tariff, when your solar system produces more electricity than your home uses, the excess is sent to the grid and you receive credits at the full retail rate. Those credits roll over indefinitely — they never expire and they never reset.
How the Solar Energy Adjustment works: For systems enrolled in 2026, a Solar Energy Adjustment of $0.0402/kWh applies to ALL electricity your system produces (not just what you export). This rate is locked at 4.02¢/kWh for 20 years from your enrollment date — and that lock is actually one of the best parts of the program.
Why the 20-year rate lock is an advantage:
Think about it this way: Eversource has raised rates 29% in a single year. Over 20 years, electricity prices will almost certainly continue climbing. But your Solar Energy Adjustment? It stays at 4.02¢ forever. In year 1, you're saving ~22¢/kWh. By year 10, when rates may be 35–40¢/kWh, you're still only paying 4.02¢ — meaning your savings per kWh keep growing while your adjustment fee stays flat. The longer you have the system, the better the deal gets.
Will you still get a monthly electric bill? Yes — but it'll be dramatically lower.
Let's be upfront: you'll still see a monthly bill from Eversource. Solar doesn't eliminate your electric bill entirely — you remain connected to the grid, and there are fixed charges and the Solar Energy Adjustment. But the bill will be significantly lower than without solar. Your solar credits offset most of the cost, and the net result is still substantial savings. The gap between what you'd pay without solar and what you actually pay grows every year as utility rates rise while your Solar Energy Adjustment stays locked at 4.02¢.
Here's the math for a 10kW system producing approximately 12,000 kWh/year:
- Solar Energy Adjustment: 12,000 kWh × $0.0402 = $482.40/year
- Value of electricity offset at retail rate (26¢/kWh): 12,000 kWh × $0.26 = $3,120/year
- Annual electricity benefit: $3,120 − $482.40 = $2,637.60/year
- Effective benefit per kWh: ~22¢/kWh in year 1 — and it only gets better as rates rise
What about the cost of going solar?
The numbers above show your electricity benefit — but you also need to account for the cost of the system itself:
- Prepaid Solar Lease:$20,000–$24,000 one-time payment → 20-year electricity benefit of $52,752+ → Net savings: $28,752–$32,752+(and growing as rates rise)
- PPA ($0 down): No upfront cost, but you pay ~16–18¢/kWh for the solar electricity → You still save 8–14¢/kWh vs. Eversource's 26–32¢/kWh → Savings from day one with $0 out of pocket
Even after paying for the system, the net savings are substantial. And as Eversource rates climb to 30¢, 35¢, 40¢ over the coming years, your Solar Energy Adjustment stays locked at 4.02¢ — meaning your per-kWh benefit grows to 26¢, 31¢, 36¢ and beyond while your system cost stays the same.
Over 20 years with a Prepaid Lease:~$52,752 in electricity benefit minus $20,000–$24,000 system cost = $28,752–$32,752+ in real net savings. With rate increases factored in, the real number will likely be significantly higher.
For a deeper look at the Solar Energy Adjustment and how it affects your bottom line, see our complete guide to the CT Solar Energy Adjustment.
4. RRES Buy-All Tariff — Sell Everything at a Fixed Rate
What it is: The second RRES option is the Buy-All Tariff. Instead of using your solar electricity and crediting the excess, you sell 100% of your system's production to the grid at a fixed rate of $0.3289/kWh, locked for 20 years.
Key details:
- The rate of $0.3289/kWh applies to ALL production — every kilowatt-hour your system generates
- No Solar Energy Adjustment applies under this tariff
- Credits can offset your electricity bill or be paid out to you quarterly
- The rate is locked for 20 years from enrollment
Math on a 10kW system:
- Annual production: ~12,000 kWh
- Annual credits: 12,000 × $0.3289 = $3,946.80/year
- 20-year credits: $78,936
The Buy-All Tariff can be attractive for homeowners who want maximum guaranteed revenue from their system. However, it works differently than the Netting Tariff — you're buying all your electricity from the utility at retail rate and selling all your solar production at the fixed rate. The best choice depends on your usage patterns, system size, and financial goals.
5. Energy Storage Solutions (ESS) — Battery Incentives
What it is: Connecticut's ESS program is restructuring effective April 1, 2026 with a new design that shifts from large upfront rebates to performance-based incentives paid over 10 years. The new program rewards homeowners who keep their battery active and available for grid support — and the total value can be higher than the old program for customers who participate fully.
Enrollment Incentives (one-time):
- Standard Residential:$30/kW
- Grid Edge Residential:$130/kW
Performance Incentives (paid annually for 10 years based on actual dispatch during events):
| Customer Class | Years 1–5 | Years 6–10 |
|---|---|---|
| Standard Residential | $300/kW | $300/kW |
| Underserved Residential | $450/kW | $450/kW |
| Low-Income Residential | $550/kW | $550/kW |
Example: 20 kW / 30 kWh battery system
| Customer Type | Enrollment Incentive | Performance (10-Year Total) |
|---|---|---|
| Standard | $900 (or $3,900 Grid Edge) | $18,000 |
| Underserved | $900 (or $3,900 Grid Edge) | $27,000 |
| Low-Income | $900 (or $3,900 Grid Edge) | $33,000 |
Key changes from the previous program:
- Upfront rebates are smaller — the program has shifted to rewarding ongoing participation
- Performance incentives are significantly higher and paid annually over 10 years
- Total program value can be higher than before for customers who keep their battery active
- Grid Edge customers still receive a bonus on the enrollment incentive
What's required: Participants must grant the utility access to dispatch the battery during peak demand events. Your battery helps stabilize the grid during the hottest summer days and highest-demand periods — and you get paid for it every year for a decade.
The bottom line: While the upfront check is smaller than before, a standard residential customer with a 20 kW system can earn $18,900 in total incentives($900 enrollment + $18,000 performance) over 10 years. Low-income households can earn up to $33,900. The new program rewards commitment — if you're keeping your battery for the long haul, the math works out even better than the old structure.
Source: CT ESS Program Changes for April 1, 2026
For more on battery options and how they pair with solar, see our batteries and solar generators guide.
6. Smart-E Loan (CT Green Bank)
The Connecticut Green Bank offers Smart-E Loans for energy improvements including solar: low-interest rates, 5–15 year terms, and up to $50,000 in financing. Up to 25% of the loan can cover non-energy improvements like a new roof — which can help homeowners who need roof work before installing solar.
Smart-E is one financing option in the CT market, though for most homeowners, a Prepaid Solar Lease or $0-down PPA typically delivers better long-term value with less complexity. We recommend comparing all options before deciding.
"But the Federal Tax Credit Expired..." — Why CT Solar Is Still Worth It
Let's address this directly. Yes, the 30% federal Investment Tax Credit (ITC) expired on December 31, 2025. If you've been researching solar, you've probably seen outdated articles still mentioning it. It's gone.
And honestly? Connecticut homeowners are still in an excellent position.
Here's why: The federal ITC was valuable, but it was never the only reason solar made financial sense. The real value of solar comes from not paying Eversource 26–32¢/kWh for the next 20 years. The incentives reduce your upfront cost, but the savings come from generating your own electricity instead of buying it at some of the highest rates in America.
Connecticut's state incentives — the sales tax exemption, the property tax exemption, the RRES credits, the battery rebates — remain fully intact. And Eversource rates, if anything, are higher now than when the federal credit was available, which means your savings from solar are larger than they were a year ago.
The federal tax credit expired. Your utility bills didn't. The math still works — and it works well.
What You Save WITH Incentives vs. WITHOUT
Let's put it all together with a real example. A typical 10kW solar system in Connecticut:
Scenario: 10kW System — Prepaid Solar Lease
System details:
- Size: 10 kW
- Annual production: ~12,000 kWh
- Cost (Prepaid Lease): ~$20,000–$24,000
Your savings WITH Connecticut incentives:
| Incentive | Savings |
|---|---|
| Sales tax exemption (6.35%) | $1,270–$1,524 |
| Property tax exemption (20 years) | $7,000–$10,000+ |
| Electricity benefit vs. Eversource (20 years at ~22¢/kWh net) | $52,000+ |
| Total estimated 20-year benefit | $60,000–$64,000+ |
| Minus: Prepaid Solar Lease cost | −$20,000–$24,000 |
| Your net savings over 20 years | $36,000–$44,000+ |
Your cost WITHOUT solar (staying on Eversource):
| Expense | 20-Year Cost |
|---|---|
| Electricity at 26–32¢/kWh | $54,000+ |
| Rate increases (compounding) | Additional thousands |
| Control over your energy costs | None |
| Total | $54,000+ and rising |
The comparison:
- With Prepaid Solar Lease: Pay $20,000–$24,000 once → $60,000+ in electricity benefits + incentives → Net savings: $36,000–$44,000+
- With $0-Down PPA: Pay $0 upfront → Save 8–14¢/kWh vs. Eversource from day one → Savings start immediately, no investment required
- Without solar: Pay $54,000+ to Eversource over 20 years → Save nothing → Net savings: $0
Even without the federal tax credit, solar delivers a strong return — a Prepaid Lease nets you $36,000–$44,000+ in real savings after the system cost, and a PPA saves you money from day one with nothing out of pocket. Both options include the added benefit of predictable energy costs for two decades.
If you choose the Buy-All Tariff instead, your 20-year credits alone total nearly $79,000 — before even counting tax exemption savings.
How SunPol Makes This Simple
Understanding incentives is one thing. Actually capturing them is another. That's where having a local, experienced installer matters.
SunPol Solar is based in Newington, Connecticut. We've completed 100+ installations across 60+ towns. We handle:
- System design customized for your roof, usage, and goals
- Permitting and paperwork — including RRES enrollment
- Installation by our experienced team and trusted local partners
- Utility interconnection so your system starts producing
- Monitoring and maintenance for the life of your system
- Warranty coverage — see our warranty details
When you request a free solar design , you get a detailed report showing your specific system size, estimated production, and three financing options compared side-by-side: Prepaid Solar Lease , $0-down PPA , and cash purchase. Every incentive on this page is factored into your personalized numbers.
No pressure. No obligation. Just the math for your specific home.
Frequently Asked Questions
Are there still solar incentives in CT without the federal tax credit?
Yes — and they're substantial. While the 30% federal Investment Tax Credit expired December 31, 2025, Connecticut's state-level incentives remain fully in effect. You still get the 6.35% sales tax exemption, the 100% property tax exemption, RRES program credits(Netting or Buy-All tariff locked for 20 years), and battery performance incentives up to $33,000+ through the ESS program. Combined with savings versus Eversource rates of 26–32¢/kWh, solar in Connecticut is still a strong financial decision.
How much do CT solar tax exemptions save homeowners?
Connecticut's two tax exemptions save homeowners significantly. The sales tax exemption (6.35%) saves $1,270–$1,905 on a typical $20,000–$30,000 system. The property tax exemption prevents any property tax increase from the added home value solar provides. Over 20 years, the property tax exemption alone can save $7,000–$10,000 or more. Combined, that's potentially $8,000–$12,000+ in tax savings.
What is the RRES program and which tariff should I choose?
The RRES (Residential Renewable Energy Solutions) program offers two options. The Netting Tariff credits you at full retail rate for excess solar sent to the grid, with credits rolling over indefinitely — a Solar Energy Adjustment of $0.0402/kWh applies. The Buy-All Tariff pays $0.3289/kWh for ALL your production with no Solar Energy Adjustment, locked for 20 years. The best choice depends on your usage patterns and system size — your free solar design will show you which option maximizes your savings.
What is the Solar Energy Adjustment and does it reduce my savings?
The Solar Energy Adjustment is a charge of $0.0402/kWh that applies to all electricity produced under the RRES Netting Tariff for 2026 enrollees. The rate is locked at 4.02¢ for 20 years — and that lock is actually an advantage. As Eversource rates rise over the next two decades (they've already jumped 29% in a single year), your adjustment fee stays the same while your savings grow. In year 1, you save ~22¢/kWh. By year 10 or 15, when rates may be 35–40¢/kWh, you're still paying just 4.02¢ — so your savings per kWh keep increasing.
You will still receive a monthly electric bill from Eversource — solar doesn't eliminate it entirely. But your net cost will be dramatically lower than without solar, and that gap grows every year as utility rates rise while your Solar Energy Adjustment stays locked at 4.02¢. The Buy-All Tariff has no Solar Energy Adjustment at all. Read our full breakdown of the Solar Energy Adjustment →
How much can a 10kW solar system save with all CT incentives?
A 10kW system produces roughly 12,000 kWh/year. With all Connecticut incentives — sales tax exemption ($1,270–$1,905 upfront), property tax exemption ($7,000–$10,000+ over 20 years), and RRES credits providing ongoing value — your cumulative 20-year value can reach $60,000–$64,000 or more. On a Prepaid Solar Lease investment of $20,000–$24,000, that's a net gain of $36,000–$44,000 over 20 years.
Can I get a battery rebate on top of solar incentives?
Yes. The ESS battery incentive is a separate program that stacks on top of all other solar incentives. Starting April 1, 2026, the program offers a small enrollment incentive ($30/kW standard, $130/kW Grid Edge) plus significant performance incentives paid annually for 10 years — $300/kW per year for standard customers, $450/kW for underserved, and $550/kW for low-income households. A standard customer with a 20 kW system can earn $18,900+ in total incentives over 10 years. Learn more about battery options →
Does Connecticut still have net metering?
Connecticut replaced its old net metering program with the RRES program, which is actually more favorable for homeowners. Under the old system, credits could expire or be zeroed out. Under the RRES Netting Tariff, credits roll over indefinitely at full retail rate. The Buy-All Tariff offers a guaranteed fixed rate of $0.3289/kWh for 20 years. Both options provide more long-term value and certainty than the previous net metering structure.
Take Control of Your Energy Costs
Every month you stay on Eversource at 26–32¢/kWh is a month you're paying more than you need to. Connecticut's incentive programs exist because the state wants homeowners like you to benefit from solar — and the numbers back it up.
You don't need the federal tax credit to make solar work. You need a system designed for your home, the right financing option, and someone who knows how to capture every incentive you're entitled to.
That's what the free solar design is for. Your address, your usage, your numbers — no guesswork, no obligation.
SunPol Solar is a local Connecticut solar installer based in Newington, CT. BBB A-rated, 5-star Google reviews, 100+ installations across 60+ Connecticut towns. CT License HIC-0698394. Call (860) 747-6527 or get your free solar design today.