Connecticut offers generous solar incentives that can help save you thousands of dollars on your solar project. Our guide breaks down the Nutmeg State’s various programs, including tax credits, a sales tax exemption, and net metering. A top solar company can also help you find the best incentives for your installation.

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How Does the Federal Solar Tax Credit Work?

All Connecticut homeowners can use the federal solar investment tax credit (ITC) to reduce or eliminate your owed federal taxes. The current rate allows you to claim 30% of your solar installation costs. The remaining amount can roll over to the next tax period if needed. You must own your system to receive this incentive, so those with solar leases and power purchase agreements don’t qualify.

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Is Net Metering Available in Connecticut?

Net metering allows solar customers to send excess energy from their systems to the electric grid in exchange for credits on their electricity bills. Homeowners can use these credits to offset energy costs at night or during cloudy, low-sunlight days.

Connecticut’s net metering policy is subject to specific regulations and limits. The amount of excess energy that can be credited might vary based on the utility company. Eversource offers one of the state’s largest and most well-developed net-metering programs.

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How Much Do Solar Panels Cost in Connecticut?

Solar panels have an average national cost of $20,650. According to data from EnergySage, the average cost of solar panel installation in Connecticut is $19,380 for a 6-kilowatt (kW) system. Applying the federal solar tax credit saves $5,814 for a total of $13,566.

Your solar financing option determines your system’s overall cost and possible payback period. Here is a brief overview of each option to help determine which is right for you. 

• Cash purchase: This option involves paying your full solar energy system cost up-front. Though this means a significant initial investment, you’ll receive the highest long-term savings. Cash purchasers also benefit from all available tax incentives and rebates. 
• Solar loan: Solar loans allow homeowners to finance the cost of their solar energy system over a fixed term, often with a low interest rate. A solar loan makes you eligible for all incentives since you own the system.
• Solar lease: A solar lease involves paying a fixed monthly fee to use solar panels. This option is less expensive in the short term, but the solar equipment remains the property of your installer, which means you won’t be eligible for solar incentives that would otherwise save you money. You also won’t receive other benefits, such as raised property value.
• Power purchase agreement: PPAs are similar to solar leases, but instead of paying to use the equipment, you pay for the energy you use. Customers agree to buy the electricity the solar system produces at a predetermined rate, which is often lower than their utility company’s retail rate. Unfortunately, this option makes you ineligible for solar incentives.

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Is Going Solar in Connecticut Worth It?

Connecticut offers plenty of incentives that make solar power worth it. The state provides a robust net metering program, enabling you to earn credits for excess electricity your solar system generates and feeds into the grid. These energy credits can substantially reduce utility bills, leading to long-term savings. Additionally, the state’s residential property tax exemption and Solar for All Program significantly offset up-front solar panel installation costs.

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Our Conclusion

Connecticut residents have several ways to save money on solar. Our guide covers the key solar rebates and incentives available in the state, but smaller city- or municipality-specific incentives are also worth exploring. We suggest checking DSIRE for more information.

You can read our guide to the best solar companies in Connecticut to find a solar installer that meets your energy goals and needs. You can also use our tool below to start requesting quotes from local solar installation companies.

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FAQ About Solar Tax Incentives in Connecticut

How do you get paid to go solar in Connecticut?

The main way to make a profit from solar panels in Connecticut is through a net metering program. Net metering allows you to get credits for sending excess electricity from your system to the electric grid. This reduces your electricity bill or, in some cases, may lead to your utility paying you.

Are solar panels tax-exempt in Connecticut?

Yes, due to Connecticut legislation, solar panels are tax-exempt in the state.

What happens after I pay off my solar panels?

Once you pay off your solar panels, you can continue generating your own energy and pay for grid-tied electricity whenever needed.

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Our Rating Methodology

We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:

• Solar equipment, installation, and services (25%)
• Warranty and performance guarantees (25%)
• Brand reputation and certifications (15%)
• Financing options (15%)
• Experience (10%)
• Availability (10%)

Total scores are divided by 20 for a final 5-point rating scale.

To share feedback or ask a question about this article, send a note to our Reviews team at [email protected].