New Haven, CT

Connecticut’s Property Tax Exemption for solar energy systems provides a significant financial benefit to homeowners who install solar panels on their property. This state tax exemption ensures that the added value of your solar installation won’t increase your property taxes, potentially saving you hundreds or thousands of dollars over the life of your system.

To qualify for this exemption, you must own a solar energy system installed on your property in Connecticut. There is no specific application deadline, but you should contact your local tax assessor’s office before installing your system to confirm the process in your municipality. The exemption typically lasts for the lifetime of your solar system, making this a valuable long-term benefit that helps improve the return on your solar investment while supporting Connecticut’s clean energy goals.

Connecticut’s Sales Tax Exemption program offers a significant financial benefit for homeowners investing in renewable energy systems. Under this incentive, you’re completely exempt from paying the state’s 6.35% sales tax on qualifying solar energy systems, geothermal resource systems, and wind power electric generation systems. This exemption applies to all equipment, machinery, and materials used directly in these renewable energy technologies.

To qualify, you must purchase equipment that falls within Connecticut’s definition of renewable energy technologies, which includes solar electricity systems, passive or active solar water/space heating, geothermal systems, and wind power systems. The exemption is available for purchases made on or after July 1, 2010, with no expiration date currently set. When purchasing qualifying equipment, you’ll need to provide the seller with CERT-142 (Items Used Directly in the Renewable Energy and Clean Energy Technology Industries) to claim the exemption. This form confirms your purchase qualifies under the program guidelines.

Connecticut’s Residential Renewable Energy Solutions program offers homeowners with solar panels a significant financial benefit through its Netting Tariff. This program allows you to receive full retail rate credits for the excess electricity your solar system generates and sends back to the grid. When your solar panels produce more electricity than your home uses, you’ll earn credits at the same rate you pay for electricity, creating a 1:1 value exchange that maximizes your solar investment.

The program has important timing considerations based on when your system was installed. For systems installed after January 1, 2022, any unused credits roll over indefinitely until you close your utility account, providing long-term value. This benefit applies to customers of both Eversource and United Illuminating Company in Connecticut. There’s no need to worry about annual credit expirations or reduced value for your excess generation – your credits maintain their full value as long as you keep your utility account active.