Connecticut Solar Incentives: What Homeowners Can Save in 2026

Connecticut homeowners pay some of the highest electricity rates in the country — roughly $0.28–$0.30 per kWh with Eversource and United Illuminating in 2026. That's the single biggest reason solar works here: every kilowatt-hour your panels produce replaces power that would otherwise be expensive to buy.

The incentive picture changed in 2026. The federal tax credit is gone, a new charge applies to new solar enrollees, and the state's battery program was restructured in April. What's left is still a meaningful stack — it just looks different than it did a year ago. Here's what's available, what each piece is actually worth, and how it adds up.

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Connecticut Solar Incentives at a Glance

Incentive	What it's worth	Who qualifies
Sales tax exemption	6.35% of equipment cost — roughly $1,900–$2,100 on a typical system	Everyone, applied at purchase
Property tax exemption	The added home value isn't taxed — often $180–$360+ per year	Residential solar owners
RRES compensation	Retail-rate bill credits or a fixed $0.3289/kWh, locked for 20 years	Eversource and UI customers
Smart-E Loan	Up to $50,000, no money down, 6.99%–7.99% APR	Connecticut homeowners through participating lenders
Energy Storage Solutions	$30/kWh upfront plus 10 years of performance payments	Battery owners in Eversource and UI territory
Shared Clean Energy (SCEF)	Bill credits from a community solar project	Primarily low- and moderate-income households

The Federal Tax Credit Expired

The federal residential clean energy credit, which covered 30% of a solar system's cost, expired on December 31, 2025. Systems installed before that date can still claim it on a 2025 return, but homeowners who buy a system in 2026 don't get a federal credit.

The exception is leases and power purchase agreements (PPAs). Because the leasing company owns the system, it may still be able to claim a commercial tax credit and pass some of that value through in lower payments. Whether that beats owning outright depends on the specific offer — and Connecticut's state programs, covered below, often favor ownership.

Sales Tax Exemption

Connecticut exempts qualifying solar equipment from its 6.35% sales and use tax. Your installer applies it at the point of sale, so there's nothing to file. On a system that costs $30,000–$33,000, that's roughly $1,900–$2,100 you don't pay.

Property Tax Exemption

Solar typically adds value to a home, and in most cases added value means a higher assessment. Connecticut law exempts residential solar systems from property tax, so the panels don't increase your assessed value.

That matters more in Connecticut than in most states because mill rates here are high. On an $18,000 increase in home value, a typical Connecticut town would otherwise charge roughly $180–$360 or more per year — every year you own the system. Ask your town assessor if they have a filing requirement, but for most homeowners the exemption is handled without an application.

How You're Paid for Your Solar: RRES

Connecticut replaced traditional net metering with the Residential Renewable Energy Solutions (RRES) program, run through Eversource and United Illuminating. When your system is approved, you choose one of two tariffs, and that choice is locked for 20 years:

• Netting Tariff: Your panels power your home first, and surplus earns bill credits at the retail rate that roll over month to month. New enrollees in 2026 pay a Solar Energy Adjustment of $0.0402/kWh on all of their production — roughly $440–$520 per year on a typical 10–11 kW system. Your adjustment rate locks when you enroll.
• Buy-All Tariff: All of your production is sold to the utility at a fixed $0.3289/kWh for 20 years, and you buy your household power separately at retail. The Solar Energy Adjustment doesn't apply.

For most homeowners with a system sized to their usage, the Netting Tariff comes out ahead. Households with incomes at or below 60% of the state median, or in a designated distressed municipality such as Hartford, New Haven, or Bristol, may qualify for higher incentive rates under either tariff.

RRES has more nuance than fits here — including how the 20-year lock works, why system sizing matters with the Solar Energy Adjustment, and the successor program the legislature has ordered for 2028. Our guide to net metering in Connecticut covers it in detail.

Smart-E Loan Financing

The Smart-E Loan, offered by local lenders through the Connecticut Green Bank, finances solar with up to $50,000, no down payment, no closing costs, and no collateral. As of fall 2026, standard rates are 6.99% APR for 5- to 10-year terms, 7.49% for 12 years, and 7.99% for 15 years, though participating lenders vary.

Up to 25% of the loan can go toward related non-energy work, such as roof repairs needed before installation — which matters if your roof is near the end of its life. (Our guide on whether you need a new roof before solar covers that decision.) If you're also adding a heat pump, the Green Bank has run time-limited specials with lower rates on heat pump projects, and combined projects can receive a blended rate.

For a broader look at how loans compare with paying cash or leasing, see our guide to solar loans vs. leases vs. cash.

Battery Incentives: Energy Storage Solutions

Connecticut's Energy Storage Solutions (ESS) program, administered by the Connecticut Green Bank with Eversource and UI, pays homeowners to install a battery and let the utility draw on it during peak demand. You don't need solar to participate, though most batteries are installed alongside it.

The program changed on April 1, 2026, shifting from a large upfront payment to a smaller one plus ongoing payments. For new enrollees:

Upfront enrollment incentive

• Standard homes: $30 per kWh of battery capacity
• Grid Edge homes (on circuits most prone to outages): $130 per kWh

Performance payments, for 10 years

• Standard residential: $300 per kW-year
• Underserved communities: $450 per kW-year
• Low-income households: $550 per kW-year

Performance payments are based on how much power your battery actually delivers during utility dispatch events, averaged over each season — not the battery's nameplate rating. As a rough example, a 13.5 kWh battery would earn about $405 upfront at the standard rate, and a battery that averages 5 kW during events would earn about $1,500 per year in performance payments. Your installer should model your actual numbers before you enroll.

Homeowners who applied before April 1, 2026 stay on the earlier terms, which paid more upfront and less over time.

Beyond the incentive, a battery also helps with the Solar Energy Adjustment: storing midday surplus and using it in the evening means more of your solar replaces full-price grid power instead of exporting. And in a state where nor'easters regularly knock out power, backup has value of its own. Our comparison of whole-home generators and battery backup and our guide to Enphase, Tesla Powerwall 3, and FranklinWH batteries can help you choose.

No Roof? Community Solar

If your roof is shaded, faces the wrong direction, or you rent or own a condo, Connecticut's Shared Clean Energy Facility (SCEF) program lets you subscribe to a share of a local solar project and receive credits on your electric bill. There's nothing to install. Savings are more modest than owning a system, and the program primarily serves low- and moderate-income households, so check eligibility before you plan around it.

What the Math Looks Like in 2026

Here's a typical example for a homeowner who buys a 10 kW system and enrolls in the Netting Tariff:

• Annual production: around 11,500–13,000 kWh in central Connecticut
• Bill savings at ~$0.28/kWh: roughly $3,200–$3,640 per year
• Minus the Solar Energy Adjustment: about $460–$520 per year
• Net annual savings: roughly $2,700–$3,100
• Simple payback: about 9–12 years on a cash purchase, with the sales tax exemption already factored into the price

Over 25 years — the length of a typical panel warranty — and with modest electricity rate increases, that adds up to substantial net savings. Eversource rates rose more than 31% between 2021 and 2024, and every increase makes an existing solar system's output more valuable. Your actual numbers will depend on your roof, your usage, and your utility, which is why a site-specific estimate matters.

Is Solar Worth It in Connecticut in 2026?

For most homeowners with a workable roof, yes. Connecticut's electricity prices do most of the work. The loss of the federal credit and the new Solar Energy Adjustment make the numbers less generous than they were a year ago, but the sales and property tax exemptions, retail-rate credits through RRES, and battery incentives still add up to a solid long-term return.

The things that matter most are sizing the system to your actual usage (oversizing costs more under the Solar Energy Adjustment), choosing the right RRES tariff, and deciding whether a battery fits — especially if you're on a Grid Edge circuit.

We design and install solar and battery systems throughout Connecticut. Schedule a free savings analysis and we'll model your numbers under both RRES tariffs, with and without a battery.

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This post reflects incentive programs and rates as of November 2026. Programs and utility tariffs change, so confirm current terms before you enroll, and consult a tax professional about your specific situation.

Lunex Power installs solar and home battery storage across Florida, Massachusetts, Connecticut, Rhode Island, Colorado, and North Carolina, and provides licensed electrical services throughout Florida and Massachusetts. Get in touch to talk through your project.