Connecticut Solar Panels

The Residential Renewable Energy Solutions (RRES) program is Connecticut’s primary solar compensation program, administered by Eversource and United Illuminating (UI) under oversight from PURA. When you install a solar system sized at 25 kW or less (sized to your home’s historical electricity usage), you must choose one of two compensation structures: the Netting Tariff or the Buy-All Tariff. Your chosen rate is locked in for a 20-year term from the date of enrollment.

Under the Netting Tariff, your solar panels power your home first, and any excess electricity is exported to the grid in exchange for bill credits at the current retail electricity rate. Credits roll over month to month indefinitely and are only cashed out if you end your electric service. Important for 2026 enrollees: a Solar Energy Adjustment charge of $0.0402/kWh applies to your total solar production — for an average 11 kW system, this costs roughly $520/year. Under the Buy-All Tariff, all solar production is exported directly to the grid and compensated at a fixed rate of $0.3289/kWh for applications approved in 2026, paid as an on-bill credit or quarterly cash payment. This option offers predictable, higher-rate compensation and is especially attractive for third-party-owned systems.

Income-eligible customers may qualify for additional incentive adders. If your household income is at or below 60% of the state median income, or if you participate in programs such as the Winter Protection Program, Matching Payment Program, Electric Discount Rate, or Home Energy Solutions Income Eligible (HES-IE) program, you may be eligible for a higher compensation rate. Contact Eversource or UI directly to confirm your eligibility for income-based adders before applying.

The Energy Storage Solutions (ESS) program is a state-sponsored battery storage incentive administered by the Connecticut Green Bank, Eversource, and United Illuminating, and overseen by PURA. It is designed to make home battery storage more affordable while supporting grid reliability. The program offers an upfront enrollment incentive based on your battery’s capacity (kWh), your income level, and your home’s location — with a maximum incentive of $16,000. Standard rate is $250/kWh, underserved community customers receive $450/kWh, and low-income customers receive $600/kWh. As an example, a standard 13.5 kWh Tesla Powerwall would earn a $3,375 standard incentive.

In addition to the upfront incentive, participants earn ongoing performance payments of $212/kW/year for 10 years by allowing their battery to be dispatched during Active Dispatch events — periods of high grid demand called by Eversource or UI during summer and winter peak hours. These payments are made twice per year. Homeowners in a designated Grid Edge zone (the top 10% of circuits most vulnerable to storm damage and outages) receive a 1.5x bonus multiplier on their residential incentive, effectively raising the standard rate to $375/kWh. Note: Effective April 1, 2026, new enrollees enter a revised program framework with a smaller enrollment incentive and higher ongoing performance payments tied to Active Dispatch participation.

Eligible battery models include the Tesla Powerwall 2/3, Enphase IQ Battery 5P/10T, SolarEdge Home Battery, Franklin WH aPower, Generac PWRcell, and sonnen ecoLinx, among others that meet ESS technical requirements for grid dispatch. The battery does not need to be paired with solar to qualify, though pairing is common. To apply, work with a participating installer who will submit your application through the program portal at energystoragect.com.

Connecticut provides a full sales and use tax exemption on the purchase of solar energy electricity-generating systems, passive or active solar water or space heating systems, and geothermal resource systems. This exemption applies to Connecticut’s standard 6.35% sales tax rate. On a typical residential solar installation costing around $30,000–$33,000, this exemption saves homeowners approximately $1,900–$2,100 at the time of purchase — an immediate, upfront reduction in your out-of-pocket cost.

To claim the exemption, you must complete Form CERT-140 (available from the Connecticut Department of Revenue Services) and present it to your solar installer or equipment seller at the time of purchase. The seller will then not charge you sales tax on the qualifying solar equipment and installation services. You do not need to file anything with the state after the fact — the exemption is applied at the point of sale.

This exemption applies to both the equipment (solar panels, inverters, racking, etc.) and the associated installation labor and services. It is available to all Connecticut homeowners purchasing a qualifying solar system, regardless of income level, system size, or which utility serves your home. There is no application deadline or annual renewal required.

Installing solar panels typically increases your home’s market value — but in Connecticut, that added value is permanently excluded from your property tax assessment. This means your annual property tax bill will not increase as a result of adding a solar energy system to your home. Given that Connecticut has one of the highest effective property tax rates in the nation (approximately 2.04%), this exemption can represent significant long-term savings. Over a 25-year system lifespan, the cumulative savings can exceed $16,000 for a typical Connecticut homeowner.

To claim the exemption, you must file a one-time application with your local town’s tax assessor or board of assessors in the municipality where your solar system is installed. Your application must be submitted before November 1 of the assessment year in which you want the exemption to take effect. You do not need to reapply each year — the exemption remains in place unless you make major alterations to your solar system, in which case you would need to refile.

This exemption applies to all residential solar installations in Connecticut and is available regardless of which utility serves your home (Eversource or United Illuminating). It covers rooftop solar photovoltaic (PV) systems as well as solar thermal and other qualifying renewable energy systems. Contact your local town assessor’s office for the specific form required in your municipality, as the filing process may vary slightly by town.

The Shared Clean Energy Facility (SCEF) program is Connecticut’s community solar program, allowing residents who cannot install rooftop solar — such as renters, condo owners, or homeowners with shaded or unsuitable roofs — to benefit from solar energy. Subscribers receive a fixed monthly bill credit equal to $0.025 multiplied by their average monthly electricity usage, applied directly to their Eversource or United Illuminating electric bill for up to 20 years. No equipment is installed at your home, and no upfront cost is required to subscribe.

Eligibility for the SCEF program is currently limited to two groups: income-eligible residential customers and residential customers who cannot install solar on their home (e.g., renters, those with structurally unsuitable roofs, or those in multi-unit buildings). You must have an active electricity account with Eversource CT or United Illuminating. You do not need to own your home, have a south-facing roof, or pass a credit check in most cases. Projects approved after January 1, 2026 must emit no pollutants, per Public Act 25-173.

The SCEF program was extended from 6 years to 8 years under Public Act 24-31, with eligible projects selected through a competitive bidding process each year. Solar projects are located within your utility territory, and the credits you receive reflect your proportional share of that project’s generation. To find available subscriptions, contact Eversource at their SCEF program page or United Illuminating directly, as available capacity varies by project and enrollment period.

The Smart-E Loan is a low-interest financing program administered by the Connecticut Green Bank through a network of participating local lenders. It provides Connecticut homeowners with access to loans of up to $50,000 with no down payment, no fees, and no prepayment penalties, specifically for clean energy and energy resiliency improvements including solar panels and battery storage systems. Loan terms range from 5 to 12 years, with interest rates for solar installations currently between 6.99% and 7.99% APR. (Note: The 0.99% promotional rate applies to heat pumps only and is not available for solar.)

One unique feature of the Smart-E Loan is that up to 25% of the loan amount can be used for non-energy-related home improvements that support your solar installation — for example, roof repairs or replacement needed before panels can be installed. This makes it easier to bundle necessary home improvements with your solar project under a single, affordable loan. The loan is unsecured, meaning your home is not used as collateral.

To apply, you must work with a participating Smart-E Loan lender, which includes institutions such as Peoples United Bank, Webster Bank, Liberty Bank, Fairfield County Bank, Ion Bank, and Patriot National Bank, among other Connecticut Green Bank partners. Your solar installer may be able to connect you with a participating lender directly. Visit ctgreenbank.com to find a current list of participating lenders and to learn more about the application process.