Bridgeport, CT Solar Panels

Connecticut’s Property Tax Exemption for solar energy systems allows homeowners to exclude the added value of their solar installation from their property tax assessment. When you install solar panels, they typically increase your home’s assessed value. However, this exemption ensures that you won’t pay higher property taxes on that increased value, making solar more affordable over the long term.

The exemption is classified under Connecticut General Statutes Chapter 203, Section 12-81, which covers various property tax exemptions throughout the state. While the statute doesn’t specify a dollar amount or percentage cap, the exemption applies to the full added value that solar equipment contributes to your property assessment. This means if your solar system adds $20,000 to your home’s value, that entire amount would be exempt from property taxation.

To qualify, your solar energy system must be installed on property located in Connecticut. The exemption applies automatically once your system is assessed as part of your property, though you should verify with your local tax assessor that the exemption has been properly applied. There are no income requirements or application deadlines beyond standard property assessment procedures in your municipality.

It’s important to note that this exemption continues for as long as you own the solar system and the property. If you’re considering solar financing options like leases or power purchase agreements, confirm with your tax assessor how these arrangements affect the exemption, as ownership structure may impact eligibility. Contact your local assessor’s office to ensure your solar installation receives this valuable tax benefit.

Connecticut’s Sales Tax Exemption eliminates the state’s 6.35% 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. On a typical residential solar system costing $25,000, this exemption saves you approximately $1,588.

This exemption applies to solar energy electricity generation systems, solar water heating systems (both active and passive), and related equipment. To claim this benefit, you’ll need to provide your solar installer with Form CERT-142 at the time of purchase. The exemption has been in effect since July 1, 2010, and currently has no expiration date, making it available for all qualifying solar purchases in Connecticut.

It’s important to note that this exemption only applies to the equipment itself—not to installation labor, maintenance services, or construction materials. The tax exemption is automatically applied at the point of sale when you work with a qualified solar installer who accepts the proper exemption certificate. Your installer should be familiar with this process and can help ensure you receive this benefit 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 price 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 over excess credits from month to month at full retail value, helping you maximize your solar investment throughout the year. If your system was installed after January 1, 2022, any unused credits will roll over indefinitely as long as you maintain your utility account at the same address. However, if you move and close your account, any remaining credits will be forfeited. For systems installed before January 1, 2022, excess credits were settled annually in March at the utility’s avoided cost rate, which is typically lower than the retail rate.

This net metering program is available to residential customers of Eversource and United Illuminating Company who install qualifying solar energy systems. The key consideration for homeowners is the installation date—systems installed after January 1, 2022 benefit from indefinite credit rollover, making it easier to capture the full value of your solar production over time. Keep in mind that credits are tied to your specific utility account and address, so planning for long-term homeownership helps you maximize this benefit.