New Haven, 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, helping you save money while your solar system generates clean energy.

The exemption applies to solar energy systems, including solar thermal and photovoltaic equipment, as well as energy storage systems. This means the full value added by your solar installation remains exempt from local property taxes for as long as you own the system. To qualify, your solar system must be installed on property you own in Connecticut. The exemption is automatic once your system is in place and assessed, though you should verify with your local tax assessor that the exemption has been properly applied to your property.

Connecticut’s Sales Tax Exemption eliminates the state’s 6.35% sales tax on solar energy systems and related equipment purchased for your home. This means when you buy solar panels, inverters, batteries, and other components of a solar electricity generation system, you won’t pay any Connecticut sales tax on these items. The exemption applies to complete solar systems that convert sunlight directly into electricity for residential use.

To qualify for this exemption, you simply need to be purchasing equipment that is part of a solar energy electricity generation system for your Connecticut home. When making your purchase, you’ll need to provide your solar installer or equipment seller with Form CERT-142 (Certificate of Exemption), which confirms that the items qualify for the tax exemption. Your installer will typically handle this paperwork as part of your solar installation process.

There are no income requirements, deadlines, or caps on this exemption—it remains available as long as you’re purchasing qualifying solar equipment. The financial benefit scales with your system size: for example, on a typical $25,000 solar system, you would save approximately $1,588 in sales tax. This exemption has been in effect since July 1, 2010, and applies to the equipment itself, though it does not cover installation labor, maintenance services, or repair parts for your system.

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 system produces less electricity, like winter.

The financial benefit is straightforward: every kilowatt-hour (kWh) of excess solar energy you send to the grid earns you a credit equal to your retail electricity rate. These credits carry over from month to month indefinitely, helping reduce your future electric bills. 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 lost. For systems installed before January 1, 2022, any excess credits remaining at the end of the year are settled in March at a lower avoided cost rate rather than the full retail rate.

This 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 maximize the value of your solar investment throughout the year.