Palmetto

Connecticut

Solar Guide
Nathan Healy
Certified by Nathan Healy
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar in Connecticut

Connecticut homeowners face the 4th highest utility prices nationwide at 28.76¢/kWh—73% above the national average. With electricity costs up 27% since 2020, solar installation offers substantial long-term savings.

As Connecticut ranks 11th for residential solar adoption, more homeowners are discovering how home solar panels reduce energy bills while supporting environmental sustainability.

CONNECTICUT by the Numbers

11th Most residential solar in the United States
91k Households have installed solar panels
~$8k Connecticut average solar rebate savings
~$126k Connecticut average savings over 25 years
02

Key Takeaways

  • Connecticut homeowners pay 73% above the national average for electricity, making solar an excellent investment with potential savings of $126,141 over 25 years.
  • Solar panels in Connecticut can pay for themselves in just 5.3 years thanks to high electricity rates and available federal and state incentives.
  • Connecticut offers valuable solar incentives including property tax exemptions, sales tax exemptions, and net metering that significantly reduce installation costs.
03

Palmetto Reviews

04

Solar Cost in Connecticut

Discover the true cost of solar installation in Connecticut with Palmetto’s calculator. Using real data from our installations in Hartford, New Haven, Stamford, and across the state, we provide accurate estimates tailored to your home. Make informed decisions about your clean energy journey.

System Size
Recommended System
9.43 kW
Typical for your home size in CT
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Connecticut.
Cost Breakdown
System Cost
$27,968
Federal Tax Credit (30%)
$-8,390
Final Cost
$19,578
Savings
Monthly Savings
Average utility bill reduction
$288
Payback Period
Break-even point
5.3 years
25-Year Savings
Total financial benefit
$126,141

Looking for More Detailed Connecticut City Guides?

Explore our comprehensive solar guides for major cities across Connecticut to find location-specific information on incentives, installers, and solar potential.

05

Connecticut Electricity Prices

Connecticut’s main utility providers, Eversource and UI, charged 31.6¢ and 33.2¢ per kWh respectively in 2023—both significantly higher than the state average of 29.9¢ and nearly double the national average of 16.0¢.

These elevated rates stem from Connecticut’s grid infrastructure costs, regional fuel dependencies, and transmission constraints. As a small, densely populated state, Connecticut faces unique energy distribution challenges that drive up electricity prices.

Solar installation offers Connecticut homeowners a practical solution to these high utility costs. By generating their own electricity, residents can significantly reduce their dependence on expensive grid power while locking in predictable energy expenses.

Connecticut Utilities Electricity Rates

Eversource
31.60¢
+98%
UI
33.20¢
+108%
CT Average
29.90¢
+87%
US Average
16.0¢
06

Connecticut Solar Incentives

Connecticut offers attractive solar incentives in Connecticut at both federal and state levels, making solar installation more affordable for homeowners.

These incentives include property tax exemptions on added home value, sales tax exemptions on equipment, and the Residential Renewable Energy Solutions program for electricity credits.

Research these incentives thoroughly as they may change over time. Acting promptly ensures you maximize your savings while contributing to Connecticut’s clean energy future.

Save an average of

$8,390

in solar rebates in Connecticut

INCENTIVE TYPE DESCRIPTION SOURCE
Residential Clean Energy Credit Federal tax credit A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed Learn More
Property Tax Exemption State tax exemption Added home value from solar not subject to property tax. Requires application with local assessor. Learn More
Sales Tax Exemption State tax exemption No state sales tax on solar equipment and installation. Reduces upfront purchase price. Learn More

The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.

The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.

Connecticut’s Property Tax Exemption offers homeowners a significant financial benefit when installing solar panels. This state tax exemption ensures that any increase in your property’s value resulting from a solar installation is exempt from property taxes. In simple terms, while solar typically adds value to your home, you won’t pay higher property taxes because of this added value.

To qualify for this exemption, you must file an application with your local tax assessor. This is an important step that homeowners sometimes overlook. The exemption continues for the life of your solar system, potentially saving you hundreds of dollars annually depending on your local property tax rate and the value your solar system adds to your home. There are no income restrictions for this benefit, making it accessible to all Connecticut homeowners with solar installations.

Connecticut’s Sales Tax Exemption program eliminates the state’s 6.35% sales tax on purchases related to renewable energy systems. This means when you buy solar panels, geothermal systems, wind power equipment, or other renewable energy technology for your home, you won’t pay any sales tax on these purchases, providing immediate savings on your installation costs.

To qualify, you must be purchasing equipment that will be used directly in renewable energy applications, such as solar electricity generation, solar water heating, geothermal heating/cooling, or wind power systems. The exemption has been in effect since July 1, 2010, with no expiration date currently set. When purchasing qualifying equipment, simply provide your installer or retailer with CERT-142 (the exemption certificate form) to receive the tax exemption at the point of sale. This incentive can be combined with other available federal and state solar incentives to further reduce your overall investment in clean energy.

Connecticut’s Residential Renewable Energy Solutions program offers homeowners with solar panels a significant financial benefit through its Net Metering option. This program allows you to receive full retail credit for the excess electricity your solar system generates and sends back to the grid. When your system produces more electricity than you’re using, you’ll earn credits on your utility bill at the same rate you would pay for electricity – a true 1:1 value exchange.

For homeowners who installed solar systems after January 1, 2022, these credits roll over indefinitely from month to month until you close your utility account. This means you never lose the value of the electricity your system produces. This program is available to residential customers of both Eversource and United Illuminating Company in Connecticut. There’s no deadline to enroll, but the sooner you install solar, the sooner you can start accumulating these valuable credits that help offset your electricity costs throughout the year.

Ready to start saving with solar?

Speak with a Palmetto solar expert to find out exactly how much you can save with Connecticut incentives.

Get a Free Quote
07

Connecticut Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Connecticut’s distinct seasons and varying sunlight hours affect solar production, but with the right system, the state’s ample sunshine can still generate significant clean energy year-round.

What Can the Average Connecticut Solar System Power?

Summer Production (July)

54 kWh/day

In July, your 10 kW system could power:

  • 3.6 average Connecticut homes (15 kWh/day per home)
  • or Run central AC for 18 hours AND power all other appliances
  • or Fully charge 5.4 Tesla Model 3 electric vehicles

Winter Production (December)

30 kWh/day

In December, your 10 kW system could power:

  • 2 average Connecticut homes (15 kWh/day per home)
  • or Keep your home heating system running for 15 hours
  • or Fully charge 3 Tesla Model 3 electric vehicles

Annual Production

14,600 kWh/year

Over a year, your 10 kW system could:

  • Offset 10 tons of carbon dioxide emissions
  • or Equal the environmental benefit of planting 175 trees
  • or Save approximately $4,234 in electricity costs

Want to know exactly how much solar can power your home?

Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.

Get My Custom Estimate
08

Solar Installations in Connecticut

Discover how Connecticut neighborhoods are embracing solar energy! We’ve meticulously mapped solar installations across the state to show how communities are leading the clean energy transition. Explore our interactive heatmap to see how many of your neighbors have already made the switch to solar power.

09

Leasing Solar Panels

In Connecticut, Palmetto offers Power Purchase Agreements (PPAs) through both Eversource and United Illuminating Company service areas. With a PPA, you pay only for the power your solar panels generate at a set price per kilowatt-hour instead of a fixed monthly payment, typically resulting in higher savings during summer months when production increases.

Unlike purchasing solar panels outright, Palmetto’s LightReach program eliminates upfront costs and maintenance responsibilities. We handle everything from system design and installation to ongoing maintenance and service at no cost to you. Since Palmetto Finance owns the system, we take full responsibility for its performance, even offering a 90% Production Guarantee.

For Connecticut homeowners seeking solar benefits without the investment, comparing purchase versus PPA options can help determine the best approach for your financial situation. Our comprehensive protection program provides complete peace of mind throughout your clean energy journey.

Go solar without the investment

With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!

Learn More
10

Frequently Asked Questions

Yes, solar makes excellent financial sense in Connecticut due to the state’s high electricity rates (73% above national average) and strong incentives. A typical system pays for itself in just 5.3 years.

Connecticut homeowners benefit from property tax exemptions, sales tax exemptions, and net metering programs that significantly enhance solar’s value. With average 25-year savings exceeding $126,000, solar is a smart investment for Connecticut residents.

Yes, Connecticut has 1:1 net metering through both Eversource and United Illuminating Company. Under the Residential Renewable Energy Solutions Netting Tariff, excess energy credits are carried over month-to-month at the full retail rate.

For systems installed after January 1, 2022, these credits rollover indefinitely unless you close your utility account. Systems installed before that date had excess credits trued-up annually at avoided cost rates.

Yes, solar panels increase home value in Connecticut. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.

Connecticut homeowners benefit doubly from this increase because the state offers a property tax exemption on the added value. With Connecticut’s high electricity rates, solar homes are especially attractive to buyers seeking long-term energy savings.

In Connecticut, solar installation typically costs $27,968 for a 9.43 kW system before incentives. After applying the 30% federal tax credit, the final cost drops to around $19,578.

Connecticut’s high electricity rates (28.8¢/kWh) mean faster payback periods—approximately 5.3 years. With monthly savings averaging $288, homeowners can expect lifetime savings of $126,141 over 25 years.

In Connecticut, solar is financially worthwhile due to the state’s high electricity rates (28.76¢/kWh) and strong incentives. A typical system pays for itself in just 5.3 years with average monthly savings of $288.

With 25-year savings exceeding $126,000 and property value increases exempt from taxes, solar installation offers Connecticut homeowners substantial long-term financial benefits despite the upfront investment.

As a national solar provider with over 1,235 installations in Connecticut since 2020, Palmetto offers exceptional service with competitive financing options. We combine our nationwide expertise with local installation professionals who understand Connecticut’s unique energy needs.

Our comprehensive approach includes system design, permitting, installation, and ongoing monitoring—all backed by industry-leading warranties and our commitment to making clean energy accessible to every Connecticut homeowner.