Connecticut Solar Incentives (2025)

Connecticut Solar Incentives Overview

Connecticut offers comprehensive solar incentive options making it an excellent state for homeowners to go solar in 2025. Between state programs, net metering, and property tax exemptions, Connecticut residents can significantly reduce the cost of solar installation.

The cornerstone of Connecticut's solar policy is the Residential Renewable Energy Solutions (RRES) program, which provides performance-based incentives for new solar installations. Combined with property tax exemptions, net metering credits, and other local programs, homeowners can offset a substantial portion of their solar costs.

Solar Incentives and Savings

Solar savings can come from a mix of local and utility programs, plus bill savings from producing your own electricity. Depending on where you live, you may be eligible for options such as:

• Net metering / bill credits: Value for excess electricity your system exports to the grid (rules vary by utility).
• Local or state programs: Rebates, performance-based incentives, or other programs that differ by location and may change over time.
• Tax exemptions or credits (where available): Some areas offer property or sales tax relief related to solar.

Because incentives differ by location and can change, confirm what applies to your address before signing a contract.

RRES Program (Residential Renewable Energy Solutions)

The RRES program launched on November 1, 2022, and is Connecticut's primary state solar incentive. It's administered by Eversource and United Illuminating and provides performance-based payments over 20 years for residential solar systems.

Program Structure:

• Application Fee: $100 (due when you submit your application through your utility)
• Payment Duration: 20 years of monthly credits on your electric bill
• Tariff Rate: Varies by utility and application date; typically starts around $0.06-$0.08/kWh produced
• System Ownership: Must own your system (available for cash purchases and loans, not leases/PPAs)

How It Works:

After your solar system is installed and inspected, your utility company will credit your electric bill monthly based on your system's energy production. For a typical 8 kW system producing 10,000 kWh annually, you could receive approximately $600-$800 per year in RRES credits.

Important: RRES is a performance incentive paid over time, not an upfront rebate. Your installer will help you apply for RRES approval before installation.

Net Metering in Connecticut

Connecticut has strong net metering policies that allow you to receive bill credits for excess solar electricity you send back to the grid. This is especially valuable during summer months when your system produces more than you consume.

How Net Metering Works:

• Credit Rate: You receive credits at or near the retail electricity rate ($0.23/kWh average in Connecticut)
• Banking: Excess credits roll over month-to-month and can be used to offset future bills
• Annual Reconciliation: At the end of each year, unused credits may be paid out or forfeited depending on your utility
• System Size: Residential systems up to 25 kW qualify for standard net metering

Net metering ensures that every kilowatt-hour your solar panels produce provides financial value, even if you're not home to use the electricity immediately.

Property & Sales Tax Exemptions

Property Tax Exemption:

Connecticut offers a 100% property tax exemption for solar energy systems. This means the added value of your solar installation won't increase your property taxes, even though solar panels typically increase home value by 3-4%.

How to Apply: File Form CERT-140 (Application for Exemption for Solar/Geothermal Energy Systems) with your local tax assessor. This form must be filed by November 1 following your system's installation.

Sales Tax Exemption:

Solar equipment is exempt from Connecticut's 6.35% sales tax. This exemption applies automatically to solar panel systems, inverters, batteries, and installation costs, saving you approximately $1,500-$2,000 on a typical residential system.

Project SunBridge (EPA Solar for All Grant)

In April 2024, the Connecticut Department of Energy and Environmental Protection (DEEP) was awarded a $62.45 million EPA Solar for All grant to expand solar access to low-income and disadvantaged communities. The program, named Project SunBridge, had its work plan and budget approved in January 2025.

Current Status: In August 2025, the U.S. EPA contacted DEEP to attempt to terminate the grant. DEEP is actively working with the Governor's Office and the Attorney General's Office to preserve this funding.

Program Goals (if funding is secured):

• Provide additional financial assistance for low-to-moderate income (LMI) households
• Support community solar projects in underserved areas
• Reduce energy burden for disadvantaged communities

Note: This is different from the legacy Connecticut Green Bank "Solar for All" program (2015-2021), which provided upfront rebates and has since concluded.

New Condo & HOA Solar Rights Law

Connecticut enacted a new law that takes effect on January 1, 2026, protecting the rights of condominium owners and homeowners in HOA communities to install solar panels.

Key Provisions:

• Condominium associations and HOAs cannot prohibit solar installations
• Associations may establish "reasonable restrictions" on placement and appearance, but cannot make solar infeasible
• Owners are responsible for maintenance, repair, and liability insurance for their solar systems
• Applies to both rooftop and ground-mounted systems (where allowed by local zoning)

This law removes a significant barrier for Connecticut residents who previously were blocked from going solar due to HOA or condo restrictions.

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