Connecticut Solar Incentives, Tax Credits and Rebates

Residential solar incentives in Connecticut

Connecticut does not currently offer a broad statewide cash rebate for residential solar panels. However, homeowners can still lower their costs through tax exemptions, affordable financing and utility compensation programs.

Solar tax breaks in Connecticut

• Solar sales and use tax exemption: You won’t pay state sales tax on qualifying solar systems, equipment or installation. Just provide Form CERT-140 to your installer or seller when you make the purchase.
• Solar property tax exemption: Installing solar panels usually won’t raise your property taxes in Connecticut, since qualifying equipment is exempt. Your local assessor handles this, so check with your city or town for details on how to apply.

» RELATED: Will solar panels increase my home’s value?

Solar loan programs in Connecticut

Financing options can help spread out the cost of installing solar panels and related upgrades. Connecticut offers several loan programs designed to make clean energy improvements more accessible.

Smart-E Loan

The Connecticut Green Bank’s Smart-E Loan provides no-money-down financing for solar panels, batteries and more than 90 other home energy and resiliency improvements.

Homeowners can borrow up to $50,000. Current standard interest rates range from 6.99% to 7.99%, depending on the loan term, although lender participation and available terms vary. The home must be owner-occupied and contain one to four residential units.

You must work with an approved Smart-E contractor and participating lender.

Capital for Change Energy Conservation Loan

Low- and moderate-income homeowners may qualify for an Energy Conservation Loan through Capital for Change. Eligible improvements include solar panels, battery storage and related electrical work.

Loans range from $500 to $35,000, with interest rates from 0% to 3% and repayment terms of up to 10 years. The project cannot already be underway, and the work must be completed by a participating contractor.

The separate 0% Home Energy Solutions Micro Loan is intended for smaller energy-efficiency projects and generally is not large enough to finance a complete solar installation.

Federal mortgage financing for solar panels

Eligible homeowners may also be able to include solar panels and other cost-effective energy improvements in an FHA-insured mortgage or refinance loan. VA home loans may also be used to install certain energy-related improvements.

Fannie Mae Green Financing is designed primarily for multifamily properties, so it is less relevant to most single-family homeowners.

What to know about solar compensation in Connecticut

Connecticut replaced traditional net metering for new customers with the Residential Renewable Energy Solutions program, or RRES, in 2022. The program is available to eligible Eversource and United Illuminating customers with residential systems of up to 25 kW.

Homeowners can choose between two billing options, Netting and Buy-All.

Netting

With Netting, your solar panels power your home first. Any electricity you do not use is sent to the grid and credited at the current retail electricity rate.

• Credits can roll over from month to month.
• Unused credits can offset future supply and delivery charges.
• Credits are generally paid out only when you close the electric account.
• Systems applying in 2026 pay a Solar Energy Adjustment of 4.02 cents per kWh based on their total solar production.

The adjustment reduces the overall value of the Netting option, so make sure it is included in any savings estimate provided by an installer.

Buy-All

With Buy-All, you send all the electricity your solar panels generate to the grid and continue buying the electricity your home uses from the utility.

For applications submitted in 2026, Eversource and United Illuminating (UI) pay 32.89 cents per kWh. The rate includes the value of the system’s renewable energy certificates and is locked in for 20 years. Payments can be applied as bill credits or, under certain rules, issued as direct payments.

Additional income-based incentives

Households with qualifying incomes or homes in economically distressed communities may receive additional payments under either option.

Pro tip

Ask your installer to compare the estimated 20-year value of Netting and Buy-All after accounting for the Solar Energy Adjustment, utility rates and any income-based incentives.

Battery storage incentives

Home batteries can store solar power for use at night or during an outage, but they add substantially to the upfront cost, typically $7,000 to $18,000. Connecticut’s Energy Storage Solutions program can help reduce that expense for eligible Eversource and UI customers.

For applications approved on or after April 1, 2026, residential incentives include:

• Enrollment incentive: $30 per kWh of battery capacity for standard customers
• Grid-Edge incentive: $130 per kWh for customers in areas with frequent or lengthy outages
• Performance incentive: $300 to $550 per kW, depending on the customer category and how the battery performs during utility dispatch events

Performance payments are made seasonally for up to 10 years. Your actual earnings depend on how much electricity the battery supplies to the grid during qualifying events.

Pro tip

Ask whether your installer or battery manufacturer keeps any portion of the performance incentive before signing a contract.

» LEARN: How solar energy is stored

How much are solar panels in Connecticut?

Before any tax credits or incentives, solar panel costs in Connecticut typically range from $13,895 to $27,790. Your system size greatly affects how much you pay overall. The typical system size for solar systems in Connecticut is 7 kW.

How do you know if the average size system is enough for your home or if you need a bigger one?

Check the amount of electricity you used last year in kilowatt-hours (kWh). You’ll find this information in your electric account dashboard online. Then, divide your annual kWh by 1,200 to find the system size you need. For example, if your home used 15,000 kWh last year, you would need a 13-kW system.

Average solar cost by system size in Connecticut

Find solar companies in Connecticut

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Connecticut’s top solar companies to learn more.

FAQ

Bottom line

The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar. Turns out, it’s worth it for many homeowners, particularly in Connecticut.

Solar costs and savings: Connecticut and nearby states