Connecticut
Solar in Connecticut
Connecticut homeowners are turning to solar installation as electricity prices have surged 27% from 2020 to 2024. With residential rates at 28.76 cents per kWh compared to the national average of 16.6 cents, home solar panels offer a path to energy independence and long-term savings.
As Connecticut’s trusted solar partner, Palmetto has helped thousands of residents navigate solar installation in Connecticut. This comprehensive guide covers costs, incentives, system sizing, and everything you need to make an informed decision about solar for your home.
Key Takeaways
- Connecticut electricity rates at 28.8¢/kWh are 74% higher than the national average, making solar panels a smart investment for long-term savings.
- Federal tax credits and state property tax exemptions can reduce your solar installation costs by approximately $8,390 in Connecticut.
- Connecticut homeowners save an average of $126,141 over 25 years with solar panels, typically paying back their investment in just 5.3 years.
Solar Cost in Connecticut
Our Connecticut solar cost calculator uses real installation data from homeowners across Hartford, New Haven, Bridgeport, and other Connecticut cities. Get personalized pricing based on actual local installations, not estimates.
System
Cost
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 residents face some of the nation’s highest electricity costs, making energy independence more important than ever.
Connecticut’s electricity rates have climbed dramatically, reaching 28.8 cents per kWh in 2024—nearly double the national average of 16.5 cents per kWh.
Solar panels allow homeowners to generate their own electricity, reducing dependence on the grid and providing protection against these rising utility costs.
With a typical solar system lasting 25+ years, Connecticut homeowners can lock in predictable energy costs while traditional electricity rates continue climbing.
Price of Energy: Connecticut vs National Average
Connecticut Area Utility Providers
Connecticut’s two main utilities, Eversource and UI, charge significantly higher electricity rates than most of the nation. Based on 2023 data, both exceed the national average substantially.
Eversource charged 31.6¢ per kWh while UI charged 33.2¢ per kWh in 2023. These rates are nearly double the national average of 16.0¢ per kWh that year.
High electricity costs stem from Connecticut’s aging infrastructure and reliance on expensive natural gas. Solar installation helps homeowners lock in predictable energy costs for decades.
Connecticut Utilities Electricity Rates
Connecticut Solar Incentives
Connecticut offers multiple solar incentives in Connecticut to help reduce your solar installation costs through federal and state programs.
These incentives include property tax exemptions on added home value, sales tax exemptions on equipment, and net metering programs that credit excess energy production.
Incentive programs can change or expire, so research current offerings thoroughly and consider acting promptly to maximize available 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 for solar energy systems 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 added value.
To qualify for this exemption, you must submit an application to your local tax assessor after installing your solar system. The financial benefit varies based 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 clean energy improvements.
Connecticut’s Sales Tax Exemption for renewable energy equipment allows businesses in the solar and clean energy industries to purchase qualifying machinery, equipment, tools, materials, supplies, and fuel without paying the state’s sales tax. This exemption applies to items used directly in research, development, testing, and manufacturing of renewable energy systems including solar panels, wind turbines, geothermal systems, and related equipment.
The financial benefit equals the full Connecticut sales tax rate (currently 6.35%) on all qualifying purchases. For example, a business purchasing $100,000 in eligible solar manufacturing equipment would save $6,350 in sales tax. To claim this exemption, businesses must present Certificate CERT-142 to sellers and demonstrate that purchases are used directly in renewable energy production, improvement, or development activities. The exemption has been effective since July 1, 2010, with no specified end date.
Important limitations include that this exemption applies only to businesses engaged in renewable energy manufacturing or development – not to homeowners purchasing solar systems for their homes. The exemption excludes administrative equipment, services, real property, construction materials, and repair parts. Businesses must use items predominantly (more than 50%) for qualifying renewable energy activities to maintain exemption eligibility.
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 power flows back to the grid and you receive full retail rate credits on your utility bill. These credits can be carried over from month to month, helping offset your electricity costs during times when your solar panels aren’t producing enough power to meet your home’s needs.
The financial benefit depends 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 flexibility to use every bit of solar energy you produce. However, if your system was installed before January 1, 2022, any remaining 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 through both Eversource and United Illuminating Company, Connecticut’s major utilities, making solar energy more accessible and financially beneficial for homeowners across the state.
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 seasonal weather patterns and latitude affect solar production throughout the year. Despite winter challenges, proper system design ensures excellent year-round performance.
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 embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar.
Leasing Solar Panels
Connecticut homeowners with Eversource and United Illuminating Company have access to Palmetto’s Power Purchase Agreement (PPA) option. With a PPA, you pay for the actual solar energy your system produces at a fixed rate per kilowatt-hour, typically lower than your current utility rate.
Unlike purchasing solar panels outright, PPAs eliminate upfront costs and maintenance responsibilities. Palmetto’s LightReach program includes installation, monitoring, maintenance, and our 90% production guarantee—all managed by our team so you can simply enjoy the savings.
This financing approach provides immediate solar savings without the large initial investment, making clean energy accessible to more Connecticut homeowners while protecting against rising electricity costs.
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¢/kWh—74% higher than the national average—Connecticut homeowners face some of the country’s highest energy costs.
Solar panels offer protection against rising utility rates while providing substantial long-term savings. Connecticut homeowners typically save $126,141 over 25 years with payback periods around 5.3 years, making solar a smart financial investment.
Yes, Connecticut has net metering through both major utilities, Eversource and United Illuminating Company. The state offers 1:1 net metering under the Residential Renewable Energy Solutions program.
For systems installed after January 1, 2022, excess credits roll over indefinitely at full retail rate until you move or close your account. Systems installed before 2022 have credits settled annually in March at avoided cost rates.
Yes, solar panels increase home value in Connecticut. Research by Zillow shows solar panels increase home value by 4.1% on average nationwide.
Connecticut’s property tax exemption protects homeowners from paying additional property taxes on the increased value from solar panels, making the investment even more attractive for Connecticut residents.
The cost to go solar in Connecticut averages $19,578 after the federal tax credit for a typical 9.43 kW system. Before incentives, the system costs approximately $27,968.
Connecticut’s 30% federal tax credit saves homeowners around $8,390, significantly reducing upfront costs. With state property tax exemptions and sales tax exemptions, total savings can be substantial for Connecticut residents.
Yes, solar is financially worth it in Connecticut. With electricity rates at 28.8¢/kWh—74% higher than the national average—homeowners save an average of $126,141 over 25 years with typical payback periods of 5.3 years.
The 30% federal tax credit reduces upfront costs by approximately $8,390, while Connecticut’s property tax exemption protects against higher taxes on increased home value from solar installation.
When choosing the best solar company in Connecticut, we recommend considering experience, financing options, and local expertise. As a national company with local focus, we’ve completed over 1,235 installations across Connecticut since 2020.
We offer some of the industry’s best financing options and work with a trusted network of local installers who understand Connecticut’s unique requirements, permitting processes, and utility interconnection procedures for both Eversource and United Illuminating customers.