Connecticut stands out with incentives that can slice thousands off your solar investment, making green energy more accessible to homeowners. We’ve laid out all the options, including tax credits, net metering, and sales tax exemptions, so you can make the most of your installation. Also, don’t forget that leading solar companies can help you find these incentives and add to your savings.
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What Are the Solar Tax Credits and Rebates in Connecticut?
Solar tax credits and rebates help to reduce installation costs as well as save you money long-term. Get details about Connecticut’s top solar incentive programs below.
Connecticut Green Bank Solar for All Program
The Connecticut Green Bank is a state-sponsored organization that promotes energy efficiency and clean energy use through various financial incentives. The organization’s current incentive, the Solar for All Program, helps eligible low-income households access solar energy through a power purchase agreement (PPA) or solar lease at reduced rates.
Contract terms for this program vary from customer to customer. The contracts have no up-front costs and guarantee customer savings without hidden fees or escalating lease payments.
More resources: Database of State Incentives for Renewables and Efficiency (DSIRE) page
Residential Property Tax Exemption
Solar panels increase a home’s value by roughly $15,000, which usually means property taxes rise. However, the Connecticut Department of Revenue Services has a residential property tax exemption for renewable energy systems. This means you won’t have to pay increased taxes after installing your solar energy system.
More resources: DSIRE page
Sales and Use Tax Exemption for Solar and Geothermal Systems
The Connecticut Department of Revenue Services allows residential property owners who choose to install solar panels or geothermal heating and cooling systems to benefit from a complete exemption from state sales and use taxes. This exemption means you avoid an additional 6.35% home solar system state sales tax on the total cost of your solar panel system.
More resources: DSIRE page
How Does the Federal Solar Tax Credit Work?
If you’re a Connecticut homeowner, you can take advantage of the federal solar investment tax credit (ITC) to save on your solar panel installation. This credit allows you to deduct 30% of your installation costs from your federal taxes. And don’t worry if you’re unable to use the entire credit in the first year. You can roll over any remaining amount to reduce your taxes in future years.
To qualify, you must own your solar panels, which means that leased solar systems or those purchased through a power purchase agreement won’t be eligible for the credit.
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.
How Much Do Solar Panels Cost in Connecticut?
The national average cost for solar panels is around $16,129. In Connecticut, you’ll find the average cost for solar panel installation is $14,259* for a 5 kW system. If you apply the federal solar tax credit, you could save $4,278, bringing your total to around $9,981.
Choosing the right solar financing option is key to figuring out your system’s overall cost and any potential payback period. Here’s a quick look at your options:
- Cash purchase: Paying the full cost of your solar system upfront means a big initial investment, but you’ll get the most savings over time. Plus, you’re eligible for all tax incentives and rebates.
- Solar loan: Finance your solar system with a loan and spread the cost over a fixed term, often with low interest. You’ll still own the system and qualify for incentives.
- Solar lease: Pay a monthly fee to use solar panels. It’s cheaper upfront, but you won’t own the equipment or get solar incentives, which could save you money.
- Power purchase agreement (PPA): This is similar to leasing, but instead of paying to use the equipment, you pay for the energy you consume at a fixed rate, which is often lower than your utilities. However, PPAs make you ineligible for most solar incentives.
*Based on 2025 EnergySage data
The Process of Going Solar in Connecticut
Switching to solar energy in Connecticut typically involves the following steps:
- Assessment: Determine if your home gets enough sunlight for solar energy. Solar providers often offer free assessments to evaluate your roof’s orientation, shading, and available space. This assessment determines how many solar panels you need. If you want an off-grind solar panel system, other components like solar batteries will be proposed.
- Consultation: If your home is suitable, arrange a consultation with a solar provider. During this meeting, they’ll design a system tailored to your energy needs and budget, explaining options for purchasing, leasing, or financing.
- Permits: Your solar provider will handle the paperwork and obtain all necessary permits from local authorities. This includes approvals for rooftop panels and compliance with zoning regulations.
- Site visit: Before installation, a technician will inspect your home to confirm the design’s feasibility. Once approved, the installer will mount the solar panels, connect the inverters, and set up the necessary wiring.
- Inspection: After installation, a local inspector will verify that the system meets all safety and code requirements. This step ensures that everything is up to standard before activation.
- Utility approval: Finally, your utility company must approve the system for interconnection. This process may involve a site visit to inspect components like wiring, disconnect switches, and safety features.
- Activation: Once approved, your system can be turned on, allowing you to start generating and saving with solar power immediately. You can use a solar system monitoring tool to make sure your system performs as expected.
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.
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.
FAQs 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.
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.
