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Connecticut homeowners pay an average of $0.275/kWh in 2026 — 53% above the national average. Both Eversource CT and United Illuminating have seen dramatic increases since 2020, driven by ISO-NE wholesale costs, natural gas dependence, and infrastructure investment.
Connecticut has two major electric utilities. Both charge well above the national average, with United Illuminating consistently running $0.01/kWh higher than Eversource.
~1.25 million customers (~75%)
$0.27
per kWh (Jan 2026)
~330,000 customers (~25%)
$0.28
per kWh (Jan 2026)
Why UI is consistently more expensive
United Illuminating serves a smaller, more urban territory (Bridgeport and New Haven) with higher infrastructure costs per customer. UI's delivery charges are typically $0.01-0.015/kWh higher than Eversource CT. Since delivery charges are the same regardless of whether you have solar, UI customers benefit more from offsetting the combined supply + delivery rate with solar generation.
Connecticut electricity rates have increased approximately 40% since 2020. Both utilities have seen dramatic swings, with 2024 peaks followed by a brief dip that reversed in 2026.
| Utility | Jan 2020 | Jan 2021 | Jan 2022 | Jan 2023 | Jan 2024 | Jan 2025 | Jan 2026 | 6-Year Change |
|---|---|---|---|---|---|---|---|---|
| Eversource CT | $0.1945 | $0.2124+9.2% | $0.2306+8.6% | $0.2592+12.4% | $0.2855+10.1% | $0.2400-15.9% | $0.2700+12.5% | +38.8% |
| UI | $0.2020 | $0.2210+9.4% | $0.2400+8.6% | $0.2680+11.7% | $0.2950+10.1% | $0.2500-15.3% | $0.2800+12.0% | +38.6% |
Pre-pandemic baseline: CT avg ~$0.20/kWh. Millstone Nuclear 10-year contract in effect since 2019.
Post-COVID demand recovery begins. Natural gas prices start climbing. CT rates rise 8-9%.
Russia-Ukraine war spikes gas prices. CT rates jump 10-12%. Legislature debates rate relief but takes no action.
Eversource controversial tree-trimming costs and storm recovery charges draw PURA scrutiny. Rates stabilize at elevated levels.
Both utilities hit record highs: Eversource $0.2855, UI $0.2950. Park City Wind offshore contract renegotiated at higher price.
Brief dip as gas prices moderate. PURA approves multi-year delivery rate increases for both utilities.
Rates rebound: Eversource $0.27, UI $0.28. Offshore wind delivery costs begin appearing on bills.
CT shares many rate drivers with the broader New England market, but has unique factors that compound the problem. Understanding these drivers shows why rates are structural — and why waiting for them to drop is not a viable strategy.
Like the rest of New England, CT relies heavily on natural gas for electricity generation. Limited pipeline capacity from the Marcellus Shale creates winter bottlenecks where gas plants compete with home heating for supply. This pipeline constraint has been a known issue for over a decade with no resolution — Kinder Morgan's Access Northeast pipeline was cancelled in 2016.
CT signed a 10-year contract with Dominion Energy in 2019 to keep Millstone Nuclear (2,088 MW) operating. While this provides ~50% of CT's generation and prevents carbon-free baseload retirement, the contract includes above-market pricing. The cost adds ~$0.005-0.01/kWh to all ratepayer bills but was deemed necessary to prevent the reliability crisis that hit other regions after nuclear closures.
CT contracted for 804 MW of offshore wind (Park City Wind, Revolution Wind). Both projects faced cost overruns and were renegotiated at 15-30% higher prices. These costs are now beginning to flow through to ratepayers. While the projects will provide clean energy, the near-term rate impact is an additional $0.005-0.015/kWh that will persist for 20+ years.
After Tropical Storm Isaias (2020) exposed grid vulnerabilities, PURA mandated accelerated vegetation management and infrastructure hardening. Eversource's capital spending in CT has increased significantly, with recovery through delivery charge increases. UI's smaller, denser territory has lower per-customer costs but higher baseline delivery charges.
ISO New England's Forward Capacity Auction sets payments to generators 3 years ahead. Recent auctions have cleared at higher prices due to generator retirements and new reliability requirements. These costs flow directly through to CT ratepayers — FCA 18 cleared at $3.58/kW-month, adding ~$0.015/kWh to all customer bills.
PURA has approved multi-year rate increase plans for both Eversource and UI. CT's Renewable Portfolio Standard requires increasing clean energy procurement, adding ~$0.01-0.02/kWh in compliance costs. The state's goal of 100% zero-carbon electricity by 2040 means these mandate costs will continue growing.
$0.075/kWh
Average rate increase since 2020. On a 850 kWh/month CT home, that is $64/month more.
$768/yr
Annual cost increase for a typical CT home vs. 2020 rates, purely from rate inflation.
$19,200+
Cumulative extra cost over 25 years if rates stay elevated vs. 2020 rates. Solar locks your rate at $0.
Based on PURA filings, ISO-NE capacity results, and fuel price trends, here is what Connecticut ratepayers should expect.
Supply rate reset for both Eversource and UI. Summer gas prices tend to be lower — expect a modest $0.01-0.02 supply reduction, offset by rising delivery charges.
PURA-approved delivery step increase takes effect. Combined with winter gas premium on supply, total rate likely $0.27-0.29/kWh.
Offshore wind delivery costs ramp up as Park City Wind and Revolution Wind come online. Net ratepayer impact: +$0.01-0.015/kWh added to all bills.
ISO-NE FCA 18 at $3.58/kW-month flows through to CT ratepayers. This is higher than previous years and adds ~$0.015/kWh.
PURA has approved multi-year step increases for Eversource and UI grid modernization. Delivery charges will rise 3-5% annually regardless of supply costs.
No new gas pipeline. Millstone contract provides stability but at above-market cost. Offshore wind adds generation but at premium pricing. Rates will not return to pre-2022 levels.
Bottom Line on CT Rate Forecasts
Connecticut rates are structurally elevated and will remain so. The Millstone contract, offshore wind pass-throughs, capacity market costs, and PURA-approved delivery increases all push rates higher. There is no credible scenario where CT rates return to $0.20/kWh. Solar is the most effective way to insulate yourself from these ongoing increases.
Every kWh your solar panels generate avoids the full retail rate. At $0.275/kWh, the savings are substantial — and they grow every time rates increase.
| System Size | Annual kWh | Bill Offset | Monthly Savings | Annual Savings | 25-Year Savings | Payback (No ITC) |
|---|---|---|---|---|---|---|
| 7 kW | 8,050 | 85% | $166 | $1,992 | $49,800 | 13.8 years |
| 9 kW | 10,350 | 90% | $225 | $2,700 | $67,500 | 12.4 years |
| 11 kW | 12,650 | 92% | $285 | $3,420 | $85,500 | 11.5 years |
| 14 kW | 16,100 | 95% | $371 | $4,452 | $111,300 | 10.8 years |
Based on $3.10/W system cost (CT average), $0.275/kWh rate, 1,150 kWh/kW annual production, no federal ITC (expired 2025), RRES incentive included.
Every 1 cent/kWh increase in CT electricity rates adds approximately $115-130/year in savings for an 11 kW solar system. Since CT rates have increased by ~7.5 cents since 2020, solar installed today saves $860-975/year more than the same system would have saved 6 years ago. Future increases compound this advantage automatically.
Connecticut's Grid-Edge battery incentive provides upfront rebates for battery storage that can participate in peak demand reduction. Combined with solar, a battery lets you store excess generation and use it during evening peak hours when rates are highest, maximizing the value of every kWh. See our CT Grid-Edge guide for full details.
While CT does not have widespread residential TOU rates, electricity costs vary significantly by season. Understanding these patterns helps solar owners maximize their savings.
Highest rates
Gas heating + electric demand
Lowest rates
Mild weather, solar ramps up
Moderate-high
A/C demand spikes
Rising
New supply rates take effect
CT's rate structure creates a natural advantage for solar owners:
Coming soon: PURA is evaluating residential TOU pilot programs for CT. If adopted, solar + battery owners would benefit even more from peak/off-peak rate differentials.
$0.275/kWh
Current CT Rate
Every kWh your solar generates is worth $0.275 in avoided electricity costs. Six years ago, it was worth only ~$0.20.
11-12 yrs
Payback Period
Even without the federal ITC (expired 2025), CT's high rates and RRES program bring payback under 12 years for most homes.
$85K+
25-Year Savings
An 11 kW system at current rates saves $85,000+ over its lifetime. If rates rise 3%/year, that climbs to $110,000+.
For an 11 kW system producing 12,650 kWh/year:
Rate increase scenarios (25-year impact):
Every month you wait, you pay another $225-370 in electricity costs that solar could eliminate. Get a personalized solar estimate for your CT home in under 2 minutes.
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