Connecticut Solar Incentives, Tax Credits and Rebates

Residential solar panel incentives in Connecticut

The federal solar investment tax credit (ITC) is the best way to save money when going solar in Connecticut. It reduces your federal tax liability by 30% of how much it costs to install solar panels. This is different from a deduction, which lowers your taxable income. ITC is a credit, meaning it directly decreases the amount of taxes you owe.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If in the year your system becomes operational, you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.

Tax credits offset your tax liability, so it’s only useful if you owe federal income taxes in the first place. However, the credit rolls over to the next tax year if you don’t use the full amount. You don’t get these benefits automatically, though. You must claim your solar equipment, labor and permits on your federal taxes for the same year you started using your system on Form 5695.

Federal solar tax credit expires at the end of 2025

The ITC is now set to expire at the end of the year, much earlier than previously scheduled. The credit was expected to drop gradually, then fully expire in 2035 — but those future step-downs have been eliminated under the “One Big Beautiful Bill,” signed in July of 2025. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.

More solar tax breaks in Connecticut

In addition to the ITC, residents may take advantage of the following:

• Property tax exemption: Connecticut Department of Revenue Services has a full 100% property tax exemption for renewable energy systems. This means that your property taxes won’t go up if solar panels increase your home's value.
• Sales and use tax exemption: Connecticut law gives a 100% sales and use tax exemption for buying and installing solar or geothermal power systems. You have to present form CERT-140 to the seller at the time of purchase. This perk doesn't have an expiration date.

Solar loan programs in Connecticut

The Connecticut Green Bank has a bunch of different programs to help people pay for renewable energy equipment, such as solar panels. For homeowners, there's the Smart-E Loan, the Residential Solar Investment Program (RSIP) and PosiGen’s Solar for All programs in New Haven and Hartford.

As of publishing, Connecticut’s Capital for Change loan program is paused. However, local governments can set up "Sustainable Energy Programs" to help homeowners finance renewable projects using PACE loans. The Federal Housing Administration (FHA) and Veterans Affairs (VA) allows financing for energy improvements like solar panels through an energy-efficiency mortgage.

More solar incentives in Connecticut

Check DSIRE for the most comprehensive source of information about solar incentives and policies in Connecticut.

What to know about net metering in Connecticut

Sometimes, your solar panels might generate more electricity than your household can use. Net metering lets you sell that extra to the local power grid. Until 2022, Connecticut had a regular net metering program for people with home solar panels.

But there’s a new program called Residential Renewable Energy Solutions (RRES). With this, homeowners have two options for selling the extra energy their renewable systems make:

• Netting: This works a lot like the old net metering program, where you sell the extra energy credits back to the utility company at the regular retail rate. Go with this billing arrangement to bank and draw excess solar power.
• Buy-All: Under the new system, you sell every kilowatt-hour that your solar setup generates back to the utility (Eversource or United Illuminating) at a fixed rate. You then purchase all the electricity for your home from the utility, just like a traditional customer.

Any grid-connected systems can still tap into the local power grid when needed. The alternative is to store it in a battery. That way, you can still turn your lights on when panels aren’t generating electricity, like at night or on especially cloudy days. The biggest downside is that solar storage battery costs can be almost as high as the panels — $7,000 to $18,000.

How much are solar panels in Connecticut?

Before considering the federal solar tax credit, solar panel costs in Connecticut typically range from $9,763 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 (kilowatts).

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

Solar resources in Connecticut

Below are some additional resources to guide you through transitioning to solar in Connecticut.

• EnergizeCT Home Energy Solutions
• Connecticut Department of Consumer Protection Solar Panel Buyers Guide
• Connecticut Solar & Storage Association
• Connecticut Department of Energy & Environmental Protection’s Solar Permit Factsheet

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.

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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