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The federal tax credit is gone for homeowners. RSIP is gone. Here is what actually exists in Connecticut for solar in 2026: the RRES program, Smart-E loans at 6.99-7.99% APR, ESS battery incentives, and two valuable tax exemptions — with real data, not outdated marketing.
Important: The 30% federal solar tax credit (Section 25D) expired December 31, 2025.
Homeowners who buy solar with cash or a loan in 2026 receive $0 in federal tax credits. The RSIP rebate program also closed in 2021. This guide reflects only currently available 2026 incentives. Learn what changed
Even without the federal tax credit or RSIP rebate, a typical 11 kW solar system in Connecticut pays for itself in approximately 9.5 years and saves over $82,000 over 25 years. Connecticut electricity rates average $0.28-$0.29/kWh — among the highest in the US — and rise 3-5% annually. The RRES netting tariff provides retail-rate credits, sales and property tax exemptions save over $2,600 in year one, and lease/PPA options pass the 30% commercial ITC savings to you through lower payments.
Avg. System Cost
$31,350
11 kW at $2.85/W
Payback Period
~9.5 yrs
Cash purchase
25-Year Savings
$82,000+
Vs. utility bills
Annual Production
12,925 kWh
1175 kWh/kW/yr
Many websites still advertise the 30% federal solar tax credit. Here is the actual status as of 2026.
Expired December 31, 2025 under the OBBBA (signed July 4, 2025). Connecticut homeowners who buy solar with cash or a loan in 2026 receive $0 in federal tax credits. Do not rely on any source claiming this credit is still available.
Still available at 30% for projects beginning construction before July 4, 2026. The third-party system owner (financing company) claims this credit — not the homeowner or installer. This is why lease and PPA options offer lower monthly payments: they pass the ITC savings to you.
Key Insight for 2026
Lease and PPA options are more attractive than ever. Because the third-party system owner captures the 30% Section 48/48E credit, they pass savings to you through lower monthly payments — effectively giving you access to a tax credit that homeowners can no longer claim directly. The deadline is July 4, 2026. Compare ownership vs. third-party options
Real pricing data for CT solar systems. No RSIP rebate (closed 2021), no federal credit (expired 2025). These are true out-of-pocket costs before tax exemptions.
CT Price Range
$2.60-$3.10/watt
Before incentives, fully installed
State Average
$2.85/watt
Typical for an 11 kW residential system
Typical 11 kW System
$31,350
Range: $28,600-$34,100
Based on $2.85/W state average. No RSIP. No federal credit.
| System Size | Panels (~400W) | Total Cost | Annual Production | Annual RRES Value |
|---|---|---|---|---|
| 5 kW | 13 | $14,250 | 5,875 kWh | ~$1,192/yr |
| 7 kW | 18 | $19,950 | 8,225 kWh | ~$1,669/yr |
| 9 kW | 23 | $25,650 | 10,575 kWh | ~$2,146/yr |
| 11 kWCT Average | 28 | $31,350 | 12,925 kWh | ~$2,623/yr |
| 13 kW | 33 | $37,050 | 15,275 kWh | ~$3,100/yr |
| 15 kW | 38 | $42,750 | 17,625 kWh | ~$3,577/yr |
Annual production: 1175 kWh/kW/yr (CT average). RRES net value = retail-rate netting credits minus $0.0402/kWh Solar Energy Adjustment (2026 enrollees), assuming 35% self-consumption, $0.29/kWh Eversource rate. Actual values vary by roof, shading, and utility.
The Residential Renewable Energy Solutions (RRES) program replaced RSIP in 2022 after RSIP hit its 350 MW deployment target. RRES uses tariff-based compensation rather than upfront rebates. Administered by Eversource CT and United Illuminating under CT PURA regulation.
Most common for homeowners. Solar powers your home first; excess exported to the grid earns retail-rate credits.
All solar production exported to grid. Typical for PPA and lease systems where a third-party owns the equipment.
Solar Energy Adjustment: $0.0402/kWh for 2026 Enrollees
This is the most important number to understand. The Solar Energy Adjustment applies to ALL solar production (not just exports) under the Netting Tariff. For an 11 kW system producing 12,925 kWh/year, this deducts approximately $520/year from your savings. Legacy customers (enrolled before 2026) pay only $0.005/kWh (~$65/year). Battery storage can help by increasing self-consumption, but does NOT eliminate the charge. Full RRES program details
RSIP Closed in 2021
The Residential Solar Investment Program (RSIP) provided upfront per-watt rebates until it reached its 350 MW deployment target and closed. Any website still advertising RSIP rebates in 2026 has outdated information. RRES replaced RSIP as the active compensation framework.
Connecticut does NOT have a state income tax credit for solar, but provides two valuable tax exemptions that reduce your effective cost.
~$1,991 Saved
Solar purchases are exempt from CT's 6.35% sales tax. On a $31,350 system, this is an immediate ~$1,991you never pay. Provide Form CERT-140 to the seller at purchase. Permanent exemption.
~$640/yr Saved
Solar added value is permanently excluded from property tax assessment. CT has among the highest property tax rates in the US (~2.04% effective). Over 25 years, this saves ~$16,000. File by November 1 of the assessment year.
$0
Connecticut does NOT offer a state income tax credit for solar installations. Do not confuse the tax exemptions (sales and property) with a tax credit. Full tax exemption details
Connecticut has two investor-owned utilities that administer the RRES program. Both offer the same tariff structure but differ in rates and battery programs.
| Feature | Eversource CT | United Illuminating |
|---|---|---|
| Retail Rate | $0.29/kWh | $0.28/kWh |
| RRES Netting Credit | Retail rate | Retail rate |
| Solar Energy Adjustment (2026) | $0.0402/kWh | $0.0402/kWh |
| Buy-All Rate (2026) | $0.3289/kWh | $0.3289/kWh |
| Max System Size | 25 kW | 25 kW |
| Territory | Hartford, north/east/central CT | New Haven, Bridgeport, southwest CT |
| Interconnection Timeline | 4-8 weeks | 4-8 weeks |
| ESS Battery Program | Yes | Yes |
| Minimum Bill | $7.00/mo | $7.00/mo |
Data: 2026 tariff schedules. Both utilities administer RRES under CT PURA regulation. Eversource CT has a slightly higher retail rate, meaning marginally higher netting credits.
Bottom line: Both utilities offer essentially the same RRES terms. Eversource CT customers see slightly higher savings due to the $0.29/kWh rate vs. UI's $0.28/kWh. The difference amounts to roughly $130/year for an 11 kW system. Full utility comparison
With the federal ITC gone for homeowners, financing dynamics have shifted. The Smart-E Loan through CT Green Bank is available at 6.99-7.99% APR for solar (the 0.99% rate is for heat pumps only). Lease and PPA are increasingly competitive because the third-party owner still captures the 30% commercial ITC.
Smart-E Loan: Solar Rate is 6.99-7.99% APR (NOT 0.99%)
Many sources incorrectly list the Smart-E rate as 0.99% APR for all clean energy projects. The 0.99% rate is exclusively for heat pump installations. Solar Smart-E rates: 5-10 year terms at 6.99%, 12 year at 7.49%, 15 year at 7.99%. Max $50,000. Up to 25% of the loan can cover non-energy improvements like roof repairs. Smart-E solar loan details
Maximum long-term savings
Monthly Cost
$0/mo after payback
Payback
~9-10 years
25-Year Savings
$82,000+
Federal ITC Access
No federal credit
Highest lifetime ROI
No interest payments
Full RRES netting credits
Sales tax exemption saves ~$2,000
$28,600-$34,100 upfront
No federal credit in 2026
$0.0402/kWh Solar Energy Adjustment
$0 down with ownership
Monthly Cost
$220-$310/mo
Payback
~11-13 years (with loan interest)
25-Year Savings
$55,000-$65,000
Federal ITC Access
No federal credit
$0 down available
You own the system
Up to $50K, 5-15 yr terms
25% can cover roof repairs
6.99-7.99% APR (NOT 0.99%)
Interest adds $8K-$15K total
No federal credit for owner
Guaranteed savings, no upfront cost
Monthly Cost
$80-$140/mo
Payback
Savings from month 1
25-Year Savings
$40,000-$60,000
Federal ITC Access
30% ITC claimed by lessor (Section 48)
$0 down
Maintenance included
Lower payment via 30% ITC pass-through
No Solar Energy Adjustment concern
Less total savings vs. ownership
Lease escalator (1-3%/yr)
Must begin construction by July 4, 2026
Locked rate below utility
Monthly Cost
Per-kWh rate, 10-20% below retail
Payback
Savings from month 1
25-Year Savings
$35,000-$55,000
Federal ITC Access
30% ITC claimed by provider (Section 48)
$0 down
Pay only for power produced
PPA provider uses Buy-All tariff ($0.3289/kWh)
Rate lower than utility
Least total savings
20-25 year contract
Must begin construction by July 4, 2026
Connecticut's Energy Storage Solutions (ESS) program provides significant upfront incentives for battery storage. With the $0.0402/kWh Solar Energy Adjustment for new RRES enrollees, batteries are more valuable than ever — they increase self-consumption and reduce the impact of that charge.
$250/kWh
For all CT solar+battery installations. A 13.5 kWh battery receives ~$3,375. Max$16,000 or 50% of system cost.
$450/kWh
For underserved communities. A 13.5 kWh battery receives ~$6,075. Max$16,000 or 50% of system cost.
$600/kWh
For income-qualified households. A 13.5 kWh battery receives ~$8,100. Max$16,000 or 50% of system cost.
ESS Upfront Incentive
$3,375
Standard tier
Performance Incentive
~$785/yr
Summer demand response (yrs 1-5)
Self-Consumption Gains
~$300/yr
Reduced SEA impact
Backup Power
Priceless
8-12 hours essential loads
Typical battery cost: $8,500-$12,500 before ESS incentive. Higher self-consumption reduces the impact of the $0.0402/kWh Solar Energy Adjustment on total savings. Full battery guide for CT
HEAR Rebates: PENDING DOE Approval for Connecticut
The Home Energy Assessment Rebate (HEAR) program (~$75M allocated for CT) is still awaiting DOE approval. When launched, HEAR will cover heat pumps and insulation — not solar directly. Do not rely on HEAR in your 2026 solar planning.
Solar pricing varies across CT based on labor markets, housing stock, and utility territory. Cities designated as economically distressed municipalities may qualify for enhanced ESS incentives and RRES income-qualified adders.
| City | Price Range | 11 kW Cost | Utility | Note |
|---|---|---|---|---|
| Hartford | $2.75-$3.10/W | $32,175 | Eversource CT | Economically distressed municipality |
| New Haven | $2.80-$3.15/W | $32,725 | United Illuminating | UI territory, RRES income-qualified eligible |
| Stamford | $2.90-$3.20/W | $33,550 | Eversource CT | Fairfield County, larger systems typical |
| Bridgeport | $2.65-$3.00/W | $31,075 | United Illuminating | ESS low-income tier eligible |
| Norwalk | $2.85-$3.15/W | $33,000 | Eversource CT | Coastal, marine-grade racking recommended |
| Waterbury | $2.60-$2.95/W | $30,525 | Eversource CT | Lowest installed costs in CT |
Prices are per watt fully installed, before tax exemptions. 11 kW cost calculated at midpoint of range. Actual quotes may vary based on roof complexity, panel brand, and installer.
Model your actual savings with CT-specific data: RRES tariffs, Solar Energy Adjustment, ESS battery incentives, and accurate Smart-E loan rates. Adjust system size, utility, and financing to see your personalized payback timeline.
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 going solar in Connecticut in 2026.
Yes. Connecticut has among the highest electricity rates in the US ($0.28-$0.29/kWh), making solar savings substantial even without the federal ITC. A typical 11 kW system costs $28,600-$34,100, produces ~12,925 kWh/year, and pays for itself in approximately 9-10 years with cash purchase. Over 25 years, total savings exceed $82,000. The RRES netting tariff provides retail-rate credits, and CT sales and property tax exemptions add approximately $2,600 in first-year value. Lease and PPA options let the third-party owner claim the 30% commercial ITC, passing savings to you through lower monthly payments.
Solar panels in Connecticut cost $2.60-$3.10 per watt installed, with a state average around $2.85/W. For a typical 11 kW system, that is approximately $31,350 before incentives. After the sales tax exemption (~$2,000 saved) and property tax exemption (~$640/year saved), the effective cost is significantly lower. Prices vary by city: Hartford $2.75-$3.10/W, Stamford $2.90-$3.20/W, Waterbury $2.60-$2.95/W.
The Residential Renewable Energy Solutions (RRES) program replaced the old RSIP (which closed in 2021) as Connecticut's solar compensation framework. RRES offers two tariff options: the Netting Tariff credits exported solar at the retail electricity rate (most common for homeowners), and the Buy-All Tariff pays $0.3289/kWh for all solar production locked for 20 years (common for PPA/lease systems). Both Eversource CT and United Illuminating administer RRES under CT PURA regulation. The max residential system size is 25 kW.
The Residential Solar Investment Program (RSIP) closed in 2021 after reaching its 350 MW deployment target. RSIP previously provided upfront rebates per watt installed. It has been fully replaced by the RRES (Residential Renewable Energy Solutions) program, which uses tariff-based compensation rather than upfront rebates. Any website still advertising RSIP rebates in 2026 has outdated information.
The Solar Energy Adjustment is a per-kWh charge applied to ALL solar production (not just exports) under the RRES Netting Tariff. For 2026 new enrollees, the rate is $0.0402/kWh — a significant increase from the $0.005/kWh that legacy customers pay. For an 11 kW system producing 12,925 kWh/year, this means approximately $520/year deducted from your solar savings. Legacy RRES and net metering customers are grandfathered at the lower rate through December 31, 2039. This adjustment is a key reason to evaluate whether the Netting or Buy-All tariff is better for your situation.
Both utilities administer the RRES program with identical tariff structures. Eversource CT has a slightly higher retail rate ($0.29/kWh vs. $0.28/kWh for UI), meaning marginally higher netting credits. The biggest difference: Eversource CT territory is eligible for the ESS battery performance incentive program, which pays battery owners for demand response participation. Both have the same RRES max system size (25 kW) and Solar Energy Adjustment rates.
Four main options: (1) Cash purchase — highest long-term savings but $28,600-$34,100 upfront, no federal credit. (2) Smart-E Loan through CT Green Bank — $0 down, up to $50K, but APR is 6.99-7.99% for solar (NOT 0.99%, which is for heat pumps only). Up to 25% can cover roof repairs. (3) Solar lease — third-party owns the system and claims the 30% Section 48 ITC, passing savings to you as lower monthly payments. (4) PPA — similar to lease but you pay per kWh generated at a rate below utility retail. Lease and PPA are increasingly attractive because the third-party owner can still access the federal tax credit.
No. Connecticut does NOT have a state income tax credit for solar installations. However, CT does provide two valuable tax exemptions: (1) Sales tax exemption — solar purchases are exempt from CT's 6.35% sales tax, saving approximately $2,000 on a typical system. Use Form CERT-140 at purchase. (2) Property tax exemption — the added home value from solar is permanently excluded from property tax assessment. With CT's high property tax rates (~2.04% effective), this saves approximately $640 per year.
For a cash purchase of an 11 kW system at $2.85/W ($31,350), payback is approximately 9-10 years through RRES netting credits and tax exemption savings. With a Smart-E Loan at 6.99-7.99% APR, payback extends to 11-13 years due to interest. Lease and PPA have no payback period since there is no upfront cost — savings begin from month one. Factors that affect payback: utility rate ($0.28-$0.29/kWh), the $0.0402/kWh Solar Energy Adjustment for new RRES enrollees, roof orientation, and shading.
Yes, and Connecticut offers strong battery incentives through the Energy Storage Solutions (ESS) program. Upfront incentives are $250/kWh (standard), $450/kWh (underserved communities), or $600/kWh (low-income), up to $16,000 or 50% of system cost. A 13.5 kWh Tesla Powerwall would receive a $3,375 standard incentive. The ESS program also provides summer peak demand response payments. Adding a battery increases self-consumption of solar production, which can reduce the impact of the $0.0402/kWh Solar Energy Adjustment.
Explore every aspect of going solar in Connecticut with our comprehensive guide library.
Pairing solar with a heat pump maximizes your energy savings and qualifies for the Smart-E 0.99% APR rate (heat pumps only).
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Pricing data: EnergySage Solar Marketplace (January 2026), NuWatt Energy installation data.
RRES program: CT PURA docket proceedings, Eversource CT and United Illuminating RRES tariff schedules (2026), Solar Energy Adjustment rates per PURA determination.
Utility rates: Eversource CT residential tariff ($0.29/kWh avg), United Illuminating residential tariff ($0.28/kWh avg), 2026 basic service rates.
ESS program: EnergizeCT Energy Storage Solutions program guidelines, CT Green Bank.
Smart-E Loan rates: CT Green Bank Smart-E Loan page. Solar rates: 6.99-7.99% APR. Heat pump rate: 0.99% APR (separate program).
Federal tax credit: One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. Section 25D expired December 31, 2025. Section 48/48E available for third-party projects beginning construction before July 4, 2026.
Production: 1,175 kWh/kW/year (CT average based on NREL PVWatts). Payback assumes 3% annual utility rate increase, 0.5% annual panel degradation. No federal credit. No RSIP (closed 2021).
Last updated: February 2026.