Connecticut Solar Incentives 2026
What's Still Available After the Federal Tax Credit Expired
The federal 30% solar ITC expired December 31, 2025. CT homeowners are right to be skeptical of quotes that still show 6–8 year payback periods. Here's the accurate, up-to-date picture: what still exists, what changed, and one important deadline coming July 4, 2026.
The Big Change: Federal ITC Is Gone
The 30% federal Residential Clean Energy Credit (Section 25D) expired for new installations on December 31, 2025. On a $26,000 system, this was worth $7,800 — its expiration adds approximately 3–4 years to payback timelines and makes any installer quoting you a 6–8 year payback in 2026 either using outdated data or misrepresenting the incentive landscape.
Connecticut's state programs — the RRES Netting Tariff, Smart-E Loans, and property/sales tax exemptions — remain fully active. The state-level picture is meaningful, just different. Here's exactly what it looks like.
Active CT Solar Incentives in 2026
Six meaningful programs survive the federal ITC's expiration. Here's the full detail on each.
RRES Netting Tariff (Net Metering)
Active ✓Connecticut's Residential Renewable Energy Solutions (RRES) Netting Tariff is the foundational incentive for CT solar owners — the mechanism by which your excess solar production becomes bill credits. Under the netting tariff, Eversource and United Illuminating credit excess production at the full retail electricity rate (currently $0.28–$0.30/kWh). Once you enroll, your rate is locked for a 20-year term.
Key Details
- Credits apply at the full retail distribution rate — one of the highest in the Northeast
- 20-year enrollment lock means you're protected from future netting tariff changes
- Monthly excess credits roll forward to the following month
- Annual reconciliation: any remaining excess credits at your anniversary date are paid out at the avoided-cost rate (lower than retail)
- New 2026 Solar Energy Adjustment: a $0.0402/kWh charge applies to all new netting enrollments under new PURA regulations — see below
New projects connecting in 2026 face a Solar Energy Adjustment charge of $0.0402/kWh on metered production — a PURA-approved charge that partially offsets the retail-rate credit. Your net credit is effectively reduced to approximately $0.24–$0.26/kWh depending on your rate class. This does not apply to projects enrolled before the regulation change.
RRES Buy-All Tariff
Active ✓The RRES Buy-All option is an alternative to netting: instead of offsetting your own usage, you sell 100% of your solar production to your utility at a fixed rate of $0.3289/kWh, then buy all your electricity at retail. This structure makes sense if your solar production significantly exceeds your home's usage — large systems on small homes, for instance — or if you qualify for a favorable retail rate that makes buying separately advantageous.
Key Details
- Fixed export rate of $0.3289/kWh for all production, locked for 20 years
- Guaranteed revenue stream regardless of your personal electricity consumption
- Best for systems producing well beyond home usage (export ratio >70%)
- Not affected by the new Solar Energy Adjustment charge that applies to netting projects
- Requires separate utility meter for production measurement
Most CT homeowners are better served by the netting tariff if their system is sized to offset 80–100% of their usage. Buy-All is primarily advantageous for oversized systems or specific rate structures — model both scenarios before selecting.
Energy Storage Solutions Program
Active ✓Connecticut's Energy Storage Solutions program provides upfront incentives for battery storage systems installed alongside solar or as standalone batteries. The standard residential incentive is $0.40/kWh of rated storage capacity, with a cap of $7,500 for standard systems. Enhanced incentive tracks — available to income-qualified households and critical facilities — can reach $16,000.
Key Details
- Standard: $0.40/kWh of rated storage capacity, up to $7,500
- Enhanced (income-qualified / critical): up to $16,000 per installation
- Available for solar-paired and standalone battery systems
- Eligible systems: UL-listed battery systems (Tesla Powerwall, Enphase IQ Battery, LG RESU, Panasonic EverVolt Battery)
- Program capacity is funded in tranches — availability cycles on and off as tranches fill
- Apply through your installer, who submits the incentive application to Eversource or UI
The Energy Storage Solutions program has experienced funding pauses when tranches fill. Confirm current availability with your installer before making battery storage a financial assumption in your payback calculation.
CT Green Bank Smart-E Loan
Active ✓The Smart-E Loan is Connecticut's primary financing mechanism for residential solar, administered through the CT Green Bank and funded through participating lenders including Salisbury Bank, Ion Bank, and others. Unlike a solar company loan, the Smart-E Loan is a personal home improvement loan held by the borrower directly with the lender — offering better consumer protections and often better rates.
Key Details
- Loan amounts up to $50,000
- Rates starting at 3.99% APR for qualified borrowers (standard track)
- 0% APR available for households at or below 80% of area median income
- 3, 5, 7, 10, or 15-year terms available
- No prepayment penalty
- Applies to solar, battery storage, heat pumps, insulation, and other energy improvements
- Can finance multiple improvements in a single loan
Connecticut Property Tax Exemption
Active ✓Connecticut General Statutes permanently exempt residential solar installations from property tax assessment. The added home value from solar — typically $15,000–$34,000 depending on system size and market — generates zero additional property taxes. This is a permanent, unconditional exemption that does not require annual application and applies to all CT municipalities.
Key Details
- 100% exemption — the full solar-added home value is excluded from assessment
- Automatic upon permit finalization — no separate appeal required in most CT towns
- Permanent — not subject to annual renewal or program changes
- Applies statewide to all 169 Connecticut municipalities
- The CEEF-43 form may be requested by some assessors for documentation — your installer should provide this
Connecticut Sales Tax Exemption
Active ✓Connecticut fully exempts residential solar panel systems and installation labor from the 6.35% state sales tax. On a $26,000 system, this saves approximately $1,651 at the point of purchase. The exemption applies to the equipment and labor billed by the installer and is applied automatically — no action required by the homeowner.
Key Details
- Exemption applies to panels, inverters, racking, wiring, and installation labor
- Applied at the time of purchase — installer does not charge sales tax on qualifying systems
- No documentation required by the homeowner
- Battery storage systems installed alongside solar are also exempt
- Applies statewide
The 2026 Solar Energy Adjustment: What It Means for CT Homeowners
This is the change most CT installers aren't telling you about.
Solar Energy Adjustment Charge
Applied to all kWh produced by new RRES Netting projects in 2026
On a 10kW system producing 12,000 kWh/year, the Solar Energy Adjustment costs approximately $482/year. At a $0.30/kWh retail credit, your effective net credit rate is reduced to approximately $0.2598/kWh. This does not eliminate the economics of solar — it simply reduces the savings rate slightly for new enrollments.
Applies To
All new residential RRES Netting enrollments as of 2026 — both Eversource and United Illuminating
Does NOT Apply To
- RRES Buy-All projects
- Systems enrolled before the regulation change
- Eversource commercial accounts under different tariff structures
Our take: The Solar Energy Adjustment makes CT solar slightly less lucrative for new enrollments but does not fundamentally change the investment case. At $0.24–$0.26/kWh effective credit rate on electricity costing $0.29–$0.30/kWh retail, the bill offset remains meaningful. We're transparent about this charge because we've seen other installers omit it from savings projections — and that creates unrealistic expectations.
The July 4, 2026 PPA Deadline
Section 48 Commercial ITC (PPA Window)
While the residential solar ITC (Section 25D) has expired, the commercial solar ITC (Section 48) — which applies to solar installations owned by third parties, including PPA and lease providers — was extended through July 4, 2026 under the Inflation Reduction Act's transition provisions. This means solar PPA and lease companies can still apply the 30% commercial credit to systems placed in service by July 4, 2026, potentially offering PPA rates well below retail.
Our recommendation: If you are considering a PPA or lease (not ownership), the economics were more favorable for projects completed before July 4, 2026. After that date, lease/PPA providers lose their commercial credit, which will likely raise PPA rates. This is not a reason to rush into a lease — ownership via loan still outperforms a PPA financially for most CT homeowners over 25 years — but it's a deadline worth knowing.
What's Gone: Expired CT Solar Incentives
For reference — and to help you spot outdated quotes or articles.
Federal ITC (Section 25D)
Expired December 31, 2025What it was: 30% of total system cost as a federal income tax credit for homeowners who purchased solar outright or via loan.
Impact of expiration: On a $26,000 system, this was worth $7,800. Its expiration adds approximately 3–4 years to CT payback periods and $7,000–$10,000 to effective net cost for most homeowners. This is the single largest change to CT solar economics in 2026.
CT RSIP (Residential Solar Investment Program)
Expired Program closed (funding exhausted 2022)What it was: CT Green Bank program that provided upfront incentive payments per watt of installed capacity. Was replaced by the RRES tariff structure.
Impact of expiration: No longer available. Replaced by the RRES Netting and Buy-All tariff programs.
Eversource vs. United Illuminating: What Changes for Solar
Both utilities offer the same state-mandated RRES tariffs, but the interconnection process, timelines, and metering requirements differ in ways that affect your project.
Eversource Energy
- Territory
- Most of CT — Hartford, Fairfield (most), Litchfield, Tolland, Windham, Middlesex, New London counties
- Rate
- ~$0.30/kWh (distribution component)
- Net Metering
- RRES Netting Tariff at full retail rate, 20-year lock
- Interconnection
- Online application via Eversource portal. Typical timeline: 4–8 weeks for residential.
Eversource requires a revenue-grade meter for systems above 25kW. Residential systems below 25kW use standard bidirectional metering. Note the 2026 Solar Energy Adjustment of $0.0402/kWh on new netting enrollments.
United Illuminating (Avangrid)
- Territory
- Greater New Haven and Bridgeport: New Haven, Bridgeport, Derby, Ansonia, West Haven, Milford, Shelton, Stratford, and surrounding towns
- Rate
- ~$0.29/kWh (distribution component)
- Net Metering
- RRES Netting Tariff at full retail rate, 20-year lock (same structure as Eversource)
- Interconnection
- Separate UI interconnection application. Typically takes 6–10 weeks. UI requires a separate smart meter installation not required by Eversource.
UI's interconnection process has historically run 2–4 weeks longer than Eversource. UI is now Avangrid-owned; applications are processed through ui.com. Same Solar Energy Adjustment applies as Eversource.