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Connecticut offers TWO permanent solar tax exemptions: a 6.35% sales tax exemption (~$2,005 saved on a $31,570 system via Form CERT-140) and a 100% property tax exemption (~$644/yr saved with CT’s 2.04% effective rate). Combined 25-year value: ~$18,105. CT has no state income tax credit for solar. The federal 25D ITC expired December 31, 2025 — $0 for homeowner purchases.
The federal residential solar tax credit (Section 25D) expired December 31, 2025 under OBBBA. Connecticut homeowners who buy solar receive $0 in federal tax credits. CT also has no state income tax credit for solar (unlike MA’s 15%/$1,000 or RI’s 25%/$7,000). CT’s value comes from two exemptions (sales + property) plus RRES netting credits. Third-party systems (PPA/lease) can still access Section 48/48E ITC (30%) through the financing company.
Connecticut exempts solar energy system purchases from the 6.35% state sales and use tax. This is claimed via Form CERT-140 at the point of sale.
Calculation: $31,570 × 6.35% = $2,005 saved at the point of purchase
Other system sizes: 5 kW ($13,000) = $826 saved. 8 kW ($22,960) = $1,458 saved. 13 kW ($37,310) = $2,369 saved. 15 kW ($43,050) = $2,734 saved.
Form CERT-140 is the official CT DRS form for claiming the solar sales tax exemption. You must provide this form to your installer before they invoice you.
Connecticut fully excludes solar installations from property tax assessment under CGS Section 12-81(57). Solar adds $0 to your assessed value — permanently. With CT’s ~2.04% effective property tax rate (among the highest in the US), this exemption is especially valuable.
Connecticut has the 3rd highest effective property tax rate in the nation at approximately 2.04%. Many CT towns exceed 2.5% (Bridgeport, Hartford, Waterbury). Every $31,570 of unexempted solar value would cost you $644+ per year in extra property taxes. The permanent exemption eliminates this entirely — and unlike Massachusetts (20-year limit), CT’s exemption never expires.
November 1 of the assessment year. Contact your town assessor as soon as your system is commissioned. Do not wait until October.
Permanent. No renewal required. Once applied, the exemption remains for the life of the system and transfers to new owners.
Your local town assessor. CT has 169 municipalities, each with its own assessor. Find yours at your town hall or the CT OPM website.
Total value of both exemptions over 25 years. Sales tax is a one-time savings; property tax savings compound every year. Based on CT average 2.04% effective property tax rate and $2.87/W average cost.
| System Size | System Cost | Sales Tax Saved | Property Tax/Yr | Combined 25-Year Value |
|---|---|---|---|---|
| 5 kW | $13,000 | $826 | $265/yr | $7,476 |
| 8 kW | $22,960 | $1,458 | $468/yr | $13,158 |
| 11 kWAVERAGE | $31,570 | $2,005 | $644/yr | $18,105 |
| 13 kW | $37,310 | $2,369 | $761/yr | $21,394 |
| 15 kW | $43,050 | $2,734 | $878/yr | $24,684 |
Combined 25-year value = Sales Tax Saved + (Annual Property Tax Saved × 25). Assumes constant property tax rates (actual savings may be higher with rate increases). Does not include RRES netting credits, ESS incentives, or other savings.
Connecticut does NOT offer a state income tax credit for solar. Some national websites incorrectly list one. Here is how CT compares to neighboring states that do offer state credits.
Connecticut
$0
No state income tax credit
Massachusetts
$1,000
15% credit, max $1,000
Rhode Island
$7,000
25% credit, max $7,000
CT Makes Up for It with Exemptions and RRES
While CT lacks a state credit, its permanent exemptions are more valuable than MA’s $1,000 credit. The CT property tax exemption alone saves ~$644/yr (permanent) vs. MA’s $1,000 one-time credit. Over 25 years, CT’s property tax savings (~$16,100) far exceed MA’s state credit. Plus CT’s RRES netting credits at $0.27–$0.30/kWh retail rate provide ongoing income.
How Connecticut’s solar tax exemptions compare to other New England and tri-state area states.
| State | Sales Tax | Property Tax | State Credit |
|---|---|---|---|
| Connecticut | Exempt (6.35% saved) | 100% exempt (permanent) | None |
| Massachusetts | Exempt | 100% exempt (20 yrs) | 15% ($1,000 max) |
| Rhode Island | Exempt | 100% exempt | 25% ($7,000 max) |
| New Jersey | Exempt (6.625% saved) | 100% exempt | None |
| New York | Not exempt (4%+ state + local) | 100% exempt (15 yrs) | 25% ($5,000 max) |
CT’s permanent dual exemptions are competitive despite lacking a state credit. CT’s property tax exemption is permanent (vs. MA 20-year limit), and the 6.35% sales tax savings exceed most state credits over time.
The sales tax exemption is claimed at purchase (Form CERT-140). The property tax exemption requires filing with your town assessor. Here is the complete process for both.
Before your installer charges you, provide CT Department of Revenue Services Form CERT-140 (Sales and Use Tax Exemption for Solar). Your installer applies the 6.35% exemption at the point of sale. This is a one-time action at purchase.
Tip: Download Form CERT-140 from the CT DRS website. Fill it out before your installation contract is finalized. Your installer should be familiar with it — if they are not, that is a red flag.
After purchase, check your final invoice to confirm the 6.35% sales tax was NOT charged. The line item should show $0 sales tax or reference the CERT-140 exemption. If sales tax was charged, contact your installer immediately for a refund.
Tip: On a $31,570 system, the sales tax would be $2,005. If your invoice shows any sales tax amount, the exemption was not applied correctly.
After your solar system is installed and operational, contact your local town assessor. Connecticut property taxes are assessed at the municipal level. Inform the assessor that you have installed a solar energy system and request the property tax exemption under CGS Section 12-81(57).
Tip: Find your local assessor at your town hall or the CT Office of Policy and Management website. Each of CT's 169 municipalities has its own assessor.
Provide the assessor with proof of installation: your final invoice, building permit, electrical inspection certificate, and system description (kW size, panel count, equipment). The filing deadline is November 1 of the assessment year. If you installed after November 1, the exemption applies to the next assessment year.
Tip: November 1 is the critical deadline. If you miss it, you may have to wait until the next assessment cycle. Submit documentation as soon as your system is commissioned — do not wait.
When your next property tax bill arrives, verify that your assessed value has NOT increased due to the solar installation. Your home's assessed value should remain the same as before solar was installed. If the value increased, contact your assessor to correct the record.
Tip: Compare your Grand List assessed value from before and after solar. The solar system value should be excluded entirely. No annual renewal is required — the exemption is permanent.
Six mistakes that can cost you thousands in missed exemptions or incorrect expectations. Avoid these and you capture the full ~$18,105 in tax savings.
Consequence: You pay the 6.35% sales tax ($2,005 on average). Getting a refund after the fact requires filing with CT DRS — a much harder process.
Fix: Download and complete Form CERT-140 before signing your installation contract. Hand it to your installer before they invoice you.
Consequence: Your property assessment may increase by the value of the solar system, and you pay higher property taxes for the entire assessment year.
Fix: Contact your town assessor within 30 days of system commissioning. File documentation well before November 1.
Consequence: The sales tax exemption is handled by the installer, but the property tax exemption is YOUR responsibility to file with the town assessor. Many homeowners confuse the two.
Fix: The installer handles sales tax (Form CERT-140). YOU handle property tax (contact your town assessor).
Consequence: Connecticut does NOT have a state income tax credit for solar, unlike MA (15%/$1,000) or RI (25%/$7,000). Some national websites incorrectly list one.
Fix: Do not budget for a CT state tax credit — it does not exist. CT solar savings come from exemptions and RRES credits, not tax credits.
Consequence: Section 25D expired December 31, 2025. Homeowners who buy solar with cash or a loan receive $0 in federal tax credits.
Fix: Budget for the full system cost minus sales tax exemption only. Or choose PPA/lease where the third-party owner claims Section 48 ITC (30%).
Consequence: If you never filed, the next property assessment could increase your assessed value, raising taxes for the buyer and potentially lowering your sale price.
Fix: File the property tax exemption as soon as solar is installed. The exemption transfers with the property to the new owner.
Tax exemptions are one of the most overlooked factors in CT solar ROI. Here is how they shift your payback timeline for an average 11 kW cash purchase.
Ongoing $644/yr property tax drag reduces net savings each year
Plus $644/yr property tax savings accelerates payback every year
Payback Improvement: ~1.5–2 Years Faster
Without any exemptions, a cash-purchased 11 kW system would take roughly 10–12 years to pay back. With both exemptions, payback drops to 8–10 years. The $2,005 upfront sales tax savings reduces your initial investment, while the $644/yr property tax savings compounds with RRES netting credits ($3,228/yr) to produce total annual benefits of ~$3,872. Over 25 years, the $18,105 in combined exemption value represents roughly 25–30% of your total system savings.
Whether you own or lease matters for how each exemption applies.
With PPA or lease, you do not purchase the solar equipment — the third-party financing company does. The sales tax structure is different:
The property tax exemption still protects you even with a third-party system:
Third-Party Systems Also Access Section 48/48E ITC (30%)
PPA and lease providers can claim the federal Section 48/48E commercial ITC (30% base) for systems beginning construction before July 4, 2026. This is a significant advantage — homeowners cannot claim 25D ($0), but the financing company’s 30% ITC savings are passed through as a lower PPA/lease rate. This makes PPA/lease especially attractive in 2026. Compare all financing options
See your personalized payback and savings including both tax exemptions, RRES netting credits, and ESS battery incentives. Adjust system size, cost, utility, and financing type.
Estimate your solar return on investment with RRES income, CT tax exemptions, and ESS battery incentives.
Federal Residential Solar Tax Credit (Section 25D) Expired
Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. Section 25D expired December 31, 2025.
Hartford, most of CT (north, east, central)
New 2026 enrollees pay $0.0402/kWh Solar Energy Adjustment on all production
Electric Rate
$0.29/kWh
RRES Program
Netting Tariff
Solar Energy Adj.
$0.0402/kWh
Interconnection
4-8 weeks
Permanent exemption — solar adds $0 to your property tax bill
Payback
7.6
years
25-Year Savings
$133,649
total
Monthly
$323
per month
Estimates based on average 2026 CT solar pricing, RRES netting tariff at retail rate, $0.0402/kWh Solar Energy Adjustment, 6.35% sales tax exemption, permanent property tax exemption (~2.04% effective rate), and ESS incentive at $250/kWh standard tier. Section 25D residential ITC expired Dec 31, 2025 — $0 federal tax credit for cash/loan purchases. CT has no state income tax credit for solar.
Answers to the most common questions about CT solar tax exemptions.
Connecticut offers two solar tax exemptions: (1) a sales tax exemption that eliminates the 6.35% CT sales tax on solar energy system purchases (save ~$2,005 on average using Form CERT-140), and (2) a permanent 100% property tax exemption that ensures solar adds $0 to your assessed value (save ~$644/yr with CT's ~2.04% effective property tax rate). Combined 25-year value is approximately $18,105. CT does NOT have a state income tax credit for solar.
Download CT Department of Revenue Services Form CERT-140 (Sales and Use Tax Exemption for Solar Energy Systems). Complete the form and provide it to your solar installer before they invoice you. The installer applies the 6.35% exemption at the point of sale. On a $31,570 system, this saves you $2,005. The exemption is permanent and does not expire.
Under CGS Section 12-81(57), solar energy systems are fully excluded from property tax assessment in Connecticut. This means your home's assessed value does not increase when you install solar. You must notify your town assessor after installation and submit documentation by November 1 of the assessment year. The exemption is permanent — no renewal needed. With CT's ~2.04% effective property tax rate, this saves approximately $644/yr on an average system.
November 1 is the filing deadline for the annual Grand List assessment in Connecticut. To get the property tax exemption for a given assessment year, you must notify your town assessor and submit documentation before November 1. If your solar system was installed after November 1, the exemption will apply starting the next assessment year. Missing this deadline means you may pay increased property taxes for a full year.
No. The federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act signed July 4, 2025. Connecticut homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. However, third-party owned systems (PPA/lease) can still access Section 48/48E ITC (30%) through the financing company for projects beginning construction before July 4, 2026.
No. Connecticut does NOT have a state income tax credit for solar. Some national websites incorrectly list one. Neighboring states like Massachusetts offer a 15% state credit (max $1,000) and Rhode Island offers 25% (max $7,000), but CT has no equivalent. CT solar savings come from the sales tax exemption, property tax exemption, and RRES netting credits — not from tax credits.
CT offers strong exemptions: permanent sales tax (6.35%) and permanent property tax (100%). NJ is similar but has higher property taxes (2.49% vs 2.04%), making the property exemption more valuable there. MA offers both exemptions plus a small state credit (15%, max $1,000) but limits the property exemption to 20 years. RI has the best state credit (25%, max $7,000). NY charges sales tax on solar but offers a $5,000 state credit. CT's permanent, no-cap exemptions are competitive.
Battery storage systems installed as an integral part of a solar energy system generally qualify for the property tax exemption under CGS Section 12-81(57). If you add a battery through the CT ESS program, notify your town assessor to ensure the battery value is also excluded from your assessment. CT has among the most generous battery incentives in New England ($250-600/kWh upfront through ESS).
See how much you can save with CT’s sales tax exemption, property tax exemption, RRES netting credits, and ESS battery incentives combined. Custom system design with real 2026 numbers — no ITC fluff.
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