Connecticut Solar Panels

Connecticut’s Property Tax Exemption protects homeowners from paying additional property taxes on the increased value that solar panels add to their home. When you install a solar energy system, it typically increases your property’s assessed value. However, with this state tax exemption, that added value is not included when calculating your annual property tax bill. This means you can enjoy the benefits of a more valuable home without the higher tax costs that would normally come with it.

To receive this exemption, you’ll need to submit an application to your local tax assessor’s office. The process and specific requirements may vary by municipality, so it’s important to contact your local assessor to understand their application procedures and any documentation they require. This exemption can result in significant savings over the lifetime of your solar system, as property taxes are an ongoing annual expense. Be sure to apply promptly after your solar installation is complete to ensure you don’t miss out on this valuable benefit.

Connecticut’s Sales Tax Exemption eliminates the 6.35% state sales tax on solar equipment and systems purchased for your home. This means when you buy solar panels, inverters, batteries, and related equipment, you won’t pay any Connecticut sales tax on these items. For a typical residential solar system costing $25,000, this exemption saves you approximately $1,588 in sales taxes.

This exemption applies to solar energy electricity generation systems, solar water heating systems (both active and passive), and related equipment. The benefit is automatically applied at the point of sale when you purchase qualifying solar equipment from a Connecticut retailer. Your solar installer should handle the exemption paperwork, but you may need to provide a Certificate of Exemption (CERT-142) to verify that your purchase qualifies. There are no income requirements or application deadlines—this exemption has been available since July 1, 2010, and remains in effect for all qualifying solar purchases.

It’s important to note that this exemption covers the equipment itself but does not apply to installation labor or services. The exemption also doesn’t cover repair or replacement parts purchased separately after your initial installation. Make sure your solar contractor is aware of this exemption and applies it to your purchase to ensure you receive the full tax savings on your solar investment.

Connecticut’s Residential Renewable Energy Solutions program offers 1:1 net metering for homeowners with solar panels served by Eversource or United Illuminating Company. This means when your solar system produces more electricity than your home uses, the excess energy flows back to the grid and you receive credits on your utility bill at the full retail rate—the same rate you pay when buying electricity from the grid. These credits help offset your energy costs during months when your solar panels produce less electricity than you need, such as during winter.

The program allows you to carry excess credits forward from month to month indefinitely, helping you maximize your solar investment year-round. For systems installed after January 1, 2022, your accumulated credits will continue rolling over as long as you maintain your utility account at the same address. If you move and close your account, any remaining credits will be forfeited. For systems installed before January 1, 2022, different rules apply: excess credits are settled annually in March at the utility’s avoided cost rate, which is typically lower than the retail rate.

This net metering arrangement is available to residential customers of both major Connecticut utilities and applies automatically when you interconnect your solar system to the grid. The program provides predictable savings by ensuring you receive full retail value for the clean energy your system generates, making solar a more attractive investment for Connecticut homeowners.