
High Rates Drive Strong Solar ROI in Connecticut
$1,680/yr
Avg. Annual Savings
4.2 peak hrs/day
Peak Sun Hours
9–13 years
Payback Period
$15,800–$23,200
Avg. System Cost
Overview
Connecticut homeowners pay some of the highest electricity rates in the continental United States — Eversource customers average $0.241/kWh, nearly double the national average. That makes every kilowatt-hour your solar system produces worth significantly more than in lower-rate states.
The Connecticut Green Bank's Smart-E Loan, full sales and property tax exemptions, and retail-rate net metering combine to make Connecticut one of the strongest solar markets in New England — even without the federal tax credit.
Benefits
Connecticut homeowners save an average of $1,680/yr after going solar.
Connecticut offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Below-market financing up to $40,000 for residential solar installations, with terms up to 12 years through participating lenders. This is Connecticut's primary solar incentive in 2026.
Eversource Energy credits excess solar generation at the retail rate under Connecticut's net metering law. Annual true-up: unused credits roll forward but do not pay out as cash.
Residential solar equipment is fully exempt from Connecticut's 6.35% sales tax, saving $1,000–$1,470 on a typical installation.
Solar installations are exempt from Connecticut property tax assessments for the life of the system.
The federal 30% Investment Tax Credit (ITC) for residential solar expired December 31, 2025 and is no longer available for new installations.
The federal solar tax credit expired December 31, 2025 — here's what that means for Connecticut homeowners and what options remain.
The federal Residential Clean Energy Credit (Section 25D) expired December 31, 2025. Connecticut homeowners purchasing solar in 2026 no longer qualify for the 30% credit. A typical 8kW system that previously cost ~$11,200 after the ITC now costs $15,800–$23,200 before state incentives. Connecticut's primary incentive in 2026 is the Connecticut Green Bank Smart-E Loan — below-market financing up to $40,000 through participating lenders.
Connecticut has some of the highest electricity rates in the continental US — Eversource customers pay $0.241/kWh on average. That means every kWh your solar system produces is worth significantly more than in lower-rate states. Even without the federal ITC, the combination of high rates, retail net metering, and the Smart-E Loan makes solar a strong financial decision for most Connecticut homeowners.
Connecticut's 6.35% sales tax exemption (saving $1,000–$1,470 on a typical system), full property tax exemption, and retail-rate net metering remain fully intact. The Smart-E Loan program provides below-market financing for homeowners who don't want to pay cash. Expect payback periods of 9–13 years for 2026 purchases.
Utility Programs
Your utility determines which programs you qualify for. Find your provider below to see net metering rates, rebates, and production incentives available in your area.
Service territory: Most of Connecticut including Hartford, New Haven, Bridgeport, Stamford, Waterbury
Net Metering
Retail rate (~$0.241/kWh)
Avg Bill Offset
85–100%
Eversource is the dominant utility in Connecticut, serving approximately 1.2 million customers. Net metering credits excess generation at the full retail rate ($0.241/kWh) — one of the highest net metering rates in the country. Annual true-up: unused credits roll forward but are not paid out as cash. Eversource's high rates are the primary economic driver for solar in Connecticut. The interconnection process typically takes 30–60 days.
Service territory: New Haven and Bridgeport area (southern Connecticut)
Net Metering
Retail rate (~$0.230/kWh)
Avg Bill Offset
85–100%
United Illuminating serves approximately 340,000 customers in the New Haven and Bridgeport area. Net metering credits excess generation at the retail rate. UI customers are eligible for the Connecticut Green Bank Smart-E Loan. UI's rates are slightly lower than Eversource's but still among the highest in the continental US, making solar a strong investment in this territory.
Cost by City
Costs reflect typical 8–9kW residential systems after Connecticut state incentives (no federal ITC — expired Dec 31, 2025). Click any city for a full cost breakdown.
| City | System Size | Gross Cost | After Incentives | Payback | Utility | Avg Bill |
|---|---|---|---|---|---|---|
| Hartford | 8kW | $16,000–$22,400 | $15,000–$21,000 | 9–12 yrs | Eversource | $180–$230 |
| New Haven | 8kW | $15,800–$22,000 | $14,800–$20,600 | 9–12 yrs | United Illuminating | $170–$215 |
| Bridgeport | 8kW | $15,800–$22,000 | $14,800–$20,600 | 9–12 yrs | United Illuminating | $165–$210 |
| Stamford | 9kW | $17,500–$24,500 | $16,400–$23,000 | 9–12 yrs | Eversource | $190–$250 |
| Waterbury | 8kW | $15,800–$22,000 | $14,800–$20,600 | 9–12 yrs | Eversource | $175–$220 |
* Costs are estimates based on local installer data and may vary. Federal ITC (30%) expired December 31, 2025.
Common Questions
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