Connecticut Solar Incentives (2026)

Connecticut Solar Incentives Overview

Connecticut solar owners can use RRES payments and property and sales tax exemptions to reduce their costs in 2026. RRES pays for solar output over time. The tax exemptions reduce the taxes tied to the system. Together, these benefits can offset part of the cost of buying and owning solar.

RRES, property tax exemptions and sales tax exemptions can reduce solar costs in Connecticut in 2026. Each helps in a different way. Compare the benefits that apply to your system and how you plan to pay for it.

A key part of Connecticut's solar policy is the Residential Renewable Energy Solutions (RRES) program, which replaced net metering in 2022. It pays for power from new solar systems. Property and sales tax exemptions also help owners offset solar costs.

Solar Incentives and Savings

Solar can cut bills by replacing power you buy from the grid. RRES also credits eligible exports at its tariff rate. Other benefits may reduce taxes or help with costs. Programs vary by place and can change. Confirm what applies to your address and system before you sign a contract.

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:

• RRES bill credits: Value for excess electricity your system exports to the grid, credited at the retail rate you pay for electricity.
• 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)

RRES pays for the power a home solar system makes over a 20-year term. Eversource and United Illuminating run the program. The payments arrive over time, not as a rebate when you buy panels. Ask your installer about the application and your utility's current tariff before you count on a payment.

The RRES program launched in January 2022. It is Connecticut's main state solar incentive. Eversource and United Illuminating run it for eligible customers. Municipal-utility customers should check their provider's solar terms. It pays for home solar output over 20 years.

What are the program terms?

• Application Fee: $163 for Eversource (due when you submit your application)
• Interconnection Upgrade Fee: $25, waived for income-eligible customers and projects in distressed municipalities
• Payment Duration: 20 years of monthly credits on your electric bill
• Tariff Rate (2026 enrollees): Buy-All pays $0.3289/kWh for everything your system produces, the same rate at both utilities, locked for 20 years. Netting instead credits you at the retail rate you pay for electricity. Rates are reset each enrollment year by PURA.
• Solar Energy Adjustment (Netting, 2026): a $0.0402/kWh charge on your total solar production appears as a line item on your bill. On a typical 6 kW system that is about $296 a year.
• System Ownership: Must own your system (available for cash purchases and loans, not leases/PPAs)

How do credits reach your bill?

After installation and inspection, your utility credits your bill each month based on the power your system makes.

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

RRES: How Connecticut Compensates Solar Exports

RRES offers two ways to receive value for solar power: Netting and Buy-All. Netting offsets your own use first and credits exports at the retail rate you pay for electricity. Buy-All sells all output to the utility. Compare both options with your installer before you enrol.

Connecticut replaced traditional net metering with the Residential Renewable Energy Solutions (RRES) program in 2022 under Public Act 19-35. Eversource and United Illuminating run RRES. You choose one of two structures when you enrol.

How do Netting and Buy-All differ?

• Netting tariff: your own consumption is offset first, and exported energy earns a bill credit at the retail rate you pay for electricity
• Buy-All tariff: all production is sold to your utility at a fixed contracted rate of $0.3289/kWh for 2026 enrollees, and you buy back everything you use at the standard rate
• Contract length: The RRES tariff term is 20 years. Buy-All uses a fixed contracted rate. Netting export credits follow the applicable retail rate, which can change; fixed incentive and adjustment components are separate.
• System size: residential systems up to 25 kW qualify

The better choice depends on how much of your solar power you use. Netting tends to suit homes that use most of it during the day. Buy-All may suit homes that export a lot. Ask your installer to model both before you enrol.

Property & Sales Tax Exemptions

Connecticut offers property and sales tax exemptions for solar systems. The property exemption keeps the added system value from raising your property taxes. The sales exemption reduces the tax on eligible equipment. These are separate benefits with different rules. Check the forms and filing deadlines before claiming either one.

How does the property tax exemption work?

Connecticut offers a 100% property tax exemption for solar energy systems. The added system value won't raise your property taxes. Owned solar systems have been associated with higher sale prices, while leased systems can complicate a sale.

How to Apply: Section 12-81(57)(E) requires a written application by November 1 in the assessment year for which the exemption is claimed. Confirm eligibility and filing requirements with your local assessor before that deadline. Danbury publishes different no-application guidance, so do not assume the conflict is resolved for your property. See the state filing rule and Danbury assessor guidance.

How does the sales tax exemption work?

Solar equipment is exempt from Connecticut's 6.35% sales tax. Present Form CERT-140 to your installer at purchase to claim the sales tax exemption. The exemption covers solar panels, inverters, batteries and installation costs. It saves about $1,500-$2,000 on a typical home system.

Project SunBridge (EPA Solar for All Grant)

Project SunBridge is Connecticut DEEP's solar access program funded by an EPA grant. It aims to help low-income and disadvantaged communities. Funding became uncertain when EPA tried to end the grant in August 2025. This is separate from the earlier Green Bank Solar for All program, which ended in 2021.

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.

What would the grant fund if it 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's solar rights law took effect on January 1, 2026. It protects condo and HOA homeowners who want solar. Associations may set reasonable rules for placement and appearance, but cannot ban a system or make it infeasible. Owners remain responsible for upkeep, repairs and liability insurance. Local zoning still applies.

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.

What can an HOA require?

• 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.

Solar Loan vs Lease vs PPA: Quick Comparison

A loan lets you own the panels and keep the incentives that apply to an owner. With a lease or PPA, the provider owns them and handles upkeep. Compare monthly savings, total costs and who receives each benefit. The table shows how those choices differ.