Connecticut
Solar in Connecticut
Connecticut homeowners pay 28.76 cents per kWh—73% above the national average. Solar installation offers a clear path to reduce these high energy costs.
This guide covers solar panels for your home in Connecticut, including costs, incentives, and installation basics.
Key Takeaways
- Connecticut homeowners pay 28.8¢ per kWh for electricity—75% above the national average of 16.5¢ per kWh.
- Solar systems in Connecticut save an average of $126,141 over 25 years with a payback period of just 5.3 years.
- Connecticut offers valuable solar incentives including 30% federal tax credit and property tax exemptions on solar installations.
Solar Cost in Connecticut
Our Connecticut solar cost calculator uses real installation data from Hartford, New Haven, Bridgeport, and other Connecticut cities. Get personalized estimates based on actual local project costs, not generic national averages.
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Savings
Looking for More Detailed Connecticut City Guides?
Explore our comprehensive solar guides for major cities across Connecticut to find location-specific information on incentives, installers, and solar potential.
Connecticut Electricity Prices
Connecticut homeowners pay 28.8 cents per kWh—75% above the national average of 16.5 cents.
Connecticut electricity rates jumped 32% from 2021 to 2024, rising from 21.9 to 28.8 cents per kWh while national rates increased just 20%.
Solar panels generate electricity at a fixed cost, protecting homeowners from unpredictable utility rate increases that have consistently outpaced national trends in Connecticut.
Over 25 years, solar systems provide stable energy costs while utility rates continue rising, potentially saving Connecticut homeowners thousands in electricity expenses.
Price of Energy: Connecticut vs National Average
Connecticut Area Utility Providers
Connecticut residents face electricity rates from two main utilities: Eversource at 31.6¢ per kWh and United Illuminating (UI) at 33.2¢ per kWh in 2023.
Both utilities charge significantly above Connecticut’s 29.90¢ state average and nearly double the 16.0¢ national average due to transmission costs and regional energy market factors.
These high electricity rates create substantial monthly bills for Connecticut homeowners, making solar energy an increasingly attractive option for long-term energy cost stability.
Connecticut Utilities Electricity Rates
Connecticut Solar Incentives
Connecticut offers valuable solar incentives in Connecticut to help offset installation costs through federal and state programs.
These incentives include property and sales tax exemptions that reduce upfront costs, plus net metering programs that provide ongoing savings on electricity bills.
Incentive programs change regularly, so research current offerings and act promptly to maximize your solar investment benefits.
$8,390
Average savings in Connecticut solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| Property Tax Exemption | State tax exemption | Added home value from solar not subject to property tax. Requires application with local assessor. | Learn More |
| Sales Tax Exemption | State tax exemption | No state sales tax on solar equipment and installation. Reduces upfront purchase price. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
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 solar panels, your home’s assessed value typically increases, but this state tax exemption ensures you won’t pay higher property taxes on that solar-related value increase.
To qualify for this exemption, you must submit an application to your local tax assessor. The financial benefit varies depending on your home’s increased value from solar and your local property tax rate, but it can save you hundreds of dollars annually in property taxes. This exemption helps make solar more affordable by eliminating the ongoing tax burden that would otherwise come with your home’s increased value from the solar installation.
Connecticut’s Sales Tax Exemption for renewable energy eliminates the state’s 6.35% sales tax on equipment and materials used directly in manufacturing, developing, or improving solar panels, wind turbines, geothermal systems, and other clean energy technologies. This exemption applies to businesses engaged in the renewable energy industry, covering everything from machinery and tools to materials and supplies used in production processes.
To qualify for this exemption, businesses must be actively involved in renewable energy and clean energy technology industries, which includes research, development, testing, and manufacturing of solar electricity systems, solar heating systems, geothermal systems, and wind power systems. Companies must present Certificate CERT-142 to sellers when making purchases and can only use the exempted items for their stated renewable energy purposes. The exemption has been in effect since July 1, 2010, with no expiration date, but it specifically excludes general business expenses like administrative costs, services, real property, and repair parts.
Connecticut’s Residential Renewable Energy Solutions program offers 1:1 net metering for homeowners with solar panels. This means when your solar system produces more electricity than you use, the excess energy is sent back to the grid and you receive credits on your utility bill at the full retail rate – the same rate you pay for electricity. These credits can be carried over from month to month, helping offset your future electric bills.
The financial benefits depend on when your solar system was installed. If you installed your system after January 1, 2022, any unused credits will roll over indefinitely until you move or close your utility account, giving you maximum value for your solar production. However, if your system was installed before January 1, 2022, any excess credits are settled annually in March at the utility’s avoided cost rate, which is typically lower than the retail rate. This program is available to customers of both Eversource and United Illuminating Company throughout Connecticut, making solar an attractive investment for homeowners looking to reduce their electricity costs while supporting clean energy.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Connecticut incentives.
Get a Free QuoteConnecticut Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Connecticut’s varied seasons and latitude create unique solar conditions. Despite winter snow and cloudy days, proper system design maximizes year-round energy production effectively.
What Can the Average Connecticut Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Connecticut homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Connecticut homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Connecticut
We’ve mapped every solar installation across America to show you something exciting: your Connecticut neighbors are already embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar power.
Leasing Solar Panels
Connecticut homeowners have access to Power Purchase Agreements (PPAs) through both major utilities – Eversource and United Illuminating Company. With a PPA, you pay a set price per kilowatt-hour for the electricity your panels produce, rather than a fixed monthly payment like traditional leases.
PPAs offer significant advantages over purchasing solar outright. You avoid the large upfront investment and ongoing maintenance responsibilities while still enjoying immediate electricity savings. Comparing solar financing options shows PPAs eliminate the financial risk of system ownership while providing predictable energy costs.
Palmetto’s LightReach program goes beyond typical PPAs by centralizing everything into one inclusive price managed solely by Palmetto Finance. We design, install, and maintain every system with comprehensive project management, premium black panels, high-efficiency inverters, and a 90% production guarantee – giving you worry-free solar with low risk and high rewards.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Connecticut. With electricity rates at 28.8¢ per kWh—75% above the national average—Connecticut homeowners face some of the highest energy costs in America.
Solar systems in Connecticut save an average of $126,141 over 25 years with a payback period of just 5.3 years, making it one of the most financially attractive states for solar investment.
Yes, Connecticut has net metering through both major utilities—Eversource and United Illuminating Company. Both offer 1:1 net metering under the Residential Renewable Energy Solutions Netting Tariff.
Excess solar credits carry over month-to-month at full retail rate. For systems installed after January 1, 2022, unused credits roll over indefinitely until you move or close your account.
Yes, solar panels increase home value in Connecticut. Research from Zillow shows solar panels increase home value by 4.1% on average across the United States.
Connecticut’s property tax exemption protects homeowners from paying additional taxes on solar-related value increases, making the investment even more attractive for Connecticut residents looking to boost their home’s worth.
Solar costs in Connecticut average $19,578 after the 30% federal tax credit for a typical 9.43 kW system. Before incentives, the average system costs $27,968.
Connecticut homeowners save an average of $8,390 through federal tax credits and state incentives like property tax exemptions, making solar more affordable than the upfront price suggests.
Yes, solar is financially worth it in Connecticut. With electricity rates at 28.8¢ per kWh—75% above the national average—solar provides substantial long-term savings for Connecticut homeowners.
Solar systems in Connecticut save an average of $126,141 over 25 years with a payback period of just 5.3 years, making it one of the most financially attractive renewable energy investments available.
We’re proud to serve Connecticut homeowners with quality solar installations. Since 2020, we’ve completed 1,235 installations across Connecticut, bringing clean energy to communities throughout the state.
We offer competitive financing options and work with trusted local installation partners to ensure quality service. Our national experience combined with local focus helps us understand Connecticut’s unique energy needs and solar incentives.