Last updated: June 2025
Written by
Jamie Smith
Homeowners can save between $6,000 and $8,000 on the average solar installation through the solar incentives and rebates currently available in Connecticut.
Connecticut is a great state to invest in solar power. A combination of high electricity rates, solar-friendly policies, and great solar and battery storage incentive programs contributes to a fast payback period for most solar homeowners.
Incentive | Estimated annual savings | Eligibility | About |
|---|---|---|---|
Federal solar tax credit | $6,547 | All tax-paying U.S. citizens | Tax credit equal to 30% of installation costs, applied to federal income taxes |
Residential Renewable Energy Energy Solutions (RRES) | Savings vary | Customers of participating Connecticut utilities with a solar system size of 25 kW or less | Connecticut homeowners can sell solar energy back to their utility in the form of a solar buyback program |
Connecticut solar sales tax exemption | $1,385 | All tax-paying Connecticut citizens | Customers who install solar are exempt from paying the 6.35% CT sales tax |
Connecticut solar property tax exemption | $554, depending on system and property value | All tax-paying Connecticut citizens | Customers who install solar are exempt from paying any additional property tax on their homes |
Connecticut homeowners who go solar can save 30% on their solar installation through the federal solar investment tax credit (ITC). The credit is equal to 30% of the total cost of the solar installation and is applied to federal income tax liabilities.
The average solar energy system in Connecticut will earn a federal solar tax credit of $6,547. However, it’s important to know that this is not an upfront payment. The tax credit works by seeing the 30% savings as a reduction on your income tax liability, and you won’t see the benefits of the tax credit until you file your taxes for the year.
If your liability is less than the value of the solar tax credit, it will be reduced to $0, and the remaining credit value will be applied to next year’s taxes. The credit can roll over for five years without an income limit.
Solar homeowners in Connecticut save money on their electricity bills through the state’s Renewable Energy Solutions (RRES) program. This program acts as a solar buyback program administered by Eversource and United Illuminating (UI).
Through RRES, there are two tariff options homeowners have to choose from to decide how they’re compensated for their solar energy:
Buy-all tariff: Your utility company purchases all of the solar energy your solar panels produce at a fixed rate for 20 years. Buy-all rates vary by utility but are currently around $0.30 per kWh of solar electricity.
Netting tariff: Your home first uses solar energy, and any excess energy is sent to the grid. The excess energy is applied as a credit to your bill equal to the full retail rate of electricity. An additional incentive for renewable energy credits can be added, but the rate is currently $0.00 per kWh. There are also income-based incentive adders available.
This program mirrors a traditional net metering program and provides great electricity bill savings. Homeowners can generally see the best savings through the netting tariff, as all solar energy is valued at the full price.
But what works best can depend on your exact circumstances and the utility rates available. Read our full guide to Connecticut’s net metering and solar buyback program for more information on this program.
Connecticut is one of the few states in the U.S. that offers a 100% sales and property tax exemption for homeowners who install solar to their homes. Tax exemptions are an avoided cost that helps keep a little extra cash in your pockets.
Connecticut offers homeowners a 100% sales tax exemption for solar installations. This means that Connecticut residents can save the state's 6.35% sales tax on solar purchases. For example, if you paid $18,000 for your solar system, the additional $1,143 in sales tax would not be included in the total.
If your solar installation raises the value of your home, that's good news! The bad news is that raised home value can increase property taxes. Luckily, Connecticut's solar property tax exemption prevents this from happening, so you don't have to pay more on your tax bill.
A 2024 Zillow Study conducted by the experts at SolarReviews found that homes with solar sell for 6.9% more on average. Considering the median home value and Connecticut's average 2% property tax rate, the average Connecticut homeowner will avoid paying an additional $544 on their property taxes annually, thanks to the solar property tax exemption.
Yes, there is a solar battery incentive program available for Connecticut homeowners. Known as the Energy Storage Solutions Program, customers of participating utilities can receive upfront and performance-based incentives for owning solar energy storage systems.
Under the Energy Storage Solutions Program, your utility company can discharge your battery during times of peak electricity demand to reduce stress on the grid.
The standard upfront incentive is worth $250 per kilowatt-hour (kWh) of battery capacity installed, but there are higher incentive rates for underserved and low-income applicants.
Along with the upfront incentive, there is a performance-based incentive that you can earn for how many kilowatts (kW) of power your battery is discharging to the grid. This incentive is paid twice a year for ten years, and the incentive rate changes depending on the season. The table below outlines the current incentive amount for the program for all customers:
Residential performance incentive (per kW) | ||||
|---|---|---|---|---|
Years 1 - 5 | Years 6 - 10 | |||
Season | Summer | Winter | Summer | Winter |
Incentive | $200 per kW | $25 per kW | $115 per kW | $15 per kW |
The average cost of a solar system in Connecticut is $2.93 per watt installed, or $21,826 for the average system size found on Connecticut homes, which is 7 kW. Once you factor in the federal solar tax credit, that cost falls to $15,278.
Federal tax credit: $21,826 x 30% = $6,547
Total savings: $6,547
Effective system cost: $21,826 - $6,547 = $15,278
These savings don’t include the electric bill savings from Connecticut’s solar buyback program, or the avoided costs associated with Connecticut's tax exemptions for solar. If you install battery storage, you can get additional savings of between $3,375 and $15,750 on your system through the state’s Energy Storage Solutions program, which also offers bi-annual performance-based payments for 10 years!
The total cost of your solar installation in Connecticut will depend on a few factors, like how many solar panels you install, the company that installs your panels, and the characteristics of your roof.
How do solar incentives and rebates impact each other? Customers who enroll in the Energy Storage Solutions program must deduct the upfront rebate amount they receive from their battery installation before filing for the federal tax credit to receive the correct amount. We recommend consulting with a tax professional before filing.
Through a combination of solar incentives, high electric rates state-wide, and an excellent solar buyback program, solar is a worthwhile investment in Connecticut. You can expect to pay back your solar investment in as little as 5.5 years through electricity bill savings. Considering solar panels last for over 25 years, you could achieve almost 15 years of free electricity!
However, every home is different, and each financial situation is unique. The best way to determine if solar is right for you is to speak with local solar companies and contractors. We recommend getting solar quotes from at least three installers for the best deal and a quality installation.
SolarReviews can connect you with verified solar installers in Connecticut, or you can click below to go through our expansive directory of the best solar companies in Connecticut based on customer reviews.
Jamie is a Content Writer and researcher at SolarReviews. A recent graduate of La Salle University in Philadelphia, Jamie earned her B.S. in communications with a concentration in journalism, mass media, and public relations.
Jamie has previously worked at a marketing company where she had the opportunity to highlight and promote small bu...
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