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With the highest electricity rates in the nation and strong state incentives, Connecticut homeowners can still achieve a 6.6-year payback on solar — even without the federal tax credit.
Avg Utility Rate
$0.30/kWh
State Incentives
$5,000
Payback Period
6.6 years
25-Year Savings
$147,400
By NuWatt Energy Team • Updated February 2026 • 8 min read
Yes, solar is worth it in Connecticut in 2026 even without the federal tax credit. With average utility rates of $0.30/kWh and $5,000 in state incentives, a typical 11kW system pays for itself in approximately 6.6 years and delivers $147,400 in total savings over 25 years. Solar locks in your electricity cost at a fraction of what you pay the utility, and the gap widens every year as rates climb 3-5% annually.
A typical residential solar installation in Connecticut uses 25 panels to build a 11kW system. Here is the full cost breakdown before and after state incentives, with no federal tax credit applied (Section 25D expired December 31, 2025).
Cost Per Watt
$2.89/W
Gross System Cost
$31,774
Net Cost After Incentives
$26,774
2025 vs 2026 Cost Comparison
2025 (with 30% ITC): A homeowner in Connecticut would have received a $9,532 federal tax credit, bringing the net cost down to $17,242.
2026 (no ITC): The same system now costs $26,774 after state incentives only — $9,532 more than it would have cost last year.
The payback period tells you how many years of electricity savings it takes to fully offset the cost of your solar installation. In Connecticut, the math works out as follows:
Payback = Net Cost ÷ Annual Savings = $26,774 ÷ $4,043 = 6.6 years
| Year | Annual Savings | Cumulative (Net) | Status |
|---|---|---|---|
| Year 1 | $4,043 | -$22,731 | Recovering |
| Year 5 | $4,730 | -$4,876 | Recovering |
| Year 10 | $5,754 | +$21,767 | Profit |
| Year 15 | $7,001 | +$54,181 | Profit |
| Year 25 | $10,363 | +$141,600 | Profit |
Payback comparison: In 2025, this same system would have paid back in 4.3 years. In 2026, it takes 6.6 years — 2.3 years longer. The difference is entirely due to losing the $9,532 federal tax credit.
While Connecticut homeowners can no longer claim the federal residential solar tax credit (Section 25D), the state offers several incentive programs that help offset the cost of going solar.
$0.25/W
The Residential Solar Investment Program provides a direct upfront rebate of $0.25 per watt for qualifying residential solar installations.
6.35% savings
Solar equipment and installation labor are exempt from Connecticut sales tax, saving approximately $2,018 on a typical 11 kW system.
Full exemption
The added home value from solar panels is exempt from local property tax assessment in Connecticut.
Net metering is the policy that determines how your utility credits you for excess solar electricity you send to the grid. In Connecticut, the specifics vary by utility company. Here is a summary of the top utilities and their current net metering policies.
| Utility | Credit Type | System Size Cap | Excess Policy |
|---|---|---|---|
| Eversource CT | 1:1 retail rate credit | Unlimited residential | Credits roll over monthly; annual payout at avoided cost |
| UI/Avangrid | 1:1 retail rate credit | Unlimited residential | Credits roll over monthly; annual payout at avoided cost |
| Town of Wallingford Electric | 1:1 retail rate credit | 20 kW | Credits roll over monthly; annual true-up |
Net metering is critical to your solar payback. When your panels produce more than you use during the day, the excess flows to the grid and your meter effectively runs backward. You receive credits that offset your nighttime and cloudy-day electricity usage. The stronger the net metering policy, the more value you extract from every kilowatt-hour your panels produce.
Losing the 30% federal tax credit makes solar more expensive upfront, but it does not erase the long-term financial case. Here is why Connecticut homeowners should still seriously consider going solar in 2026:
Highest utility rates in the US (averaging $0.30/kWh) make solar an obvious financial choice
RSIP rebate covers a significant portion of installation cost
Virtual net metering allows community solar participation
Property tax exemption protects home value indefinitely
Rising utility rates protect your investment. Electricity prices in Connecticut have historically risen 3-5% per year. Your solar panels produce power at a fixed cost, meaning your savings grow every single year as the gap between solar and utility pricing widens.
Solar increases your home value by approximately 4%. National studies consistently find that owned solar systems add roughly 4% to a home's sale price. On a median-priced home in Connecticut, that translates to thousands of dollars in added equity — often recovering a significant portion of your net system cost before you factor in electricity savings.
These are real solar installations completed by NuWatt Energy in Connecticut. Every system was designed, permitted, and installed by our team.
11.8 kW · 28 Canadian panels · SolarEdge SE10000H
Est. 13,315 kWh/year
Completed November 2025
View Full Project →
12 kW · 30 Q.CELLS panels · Enphase IQ8+
Est. 12,784 kWh/year
Completed May 2025
View Full Project →
25.2 kW · 60 REC panels · Enphase IQ8M
Est. 22,970 kWh/year
Completed July 2025
View Full Project →
The 30% federal Investment Tax Credit (ITC) is gone for homeowner purchases (Section 25D), but it is still available to solar companies through Section 48/48E. When you sign a solar lease or Power Purchase Agreement (PPA), the installer owns the system, claims the 30% credit, and passes some of those savings to you through lower monthly payments.
For a full comparison of owning vs. leasing solar in 2026, including monthly cost examples and long-term savings projections, see our Solar Lease vs. Buy 2026 guide.
Connecticut has the highest average electricity rates in the country at $0.30/kWh. This means an 11 kW solar system saves approximately $4,043 in year one alone. Even without the federal ITC, the high rate of savings results in a 6.6-year payback period — one of the fastest among states that lost the federal credit. Over 25 years, projected savings exceed $147,000.
The Residential Solar Investment Program (RSIP) provides a direct upfront rebate of $0.25 per watt. For an 11 kW system, that is $2,750 off your installation cost. Combined with the 6.35% sales tax exemption (saving about $2,018) and property tax exemption, Connecticut offers approximately $5,000 in total state-level incentives.
No — Connecticut is one of the few states with no residential system size cap for net metering with Eversource CT and UI/Avangrid. Both utilities offer 1:1 retail rate credits with monthly rollover. This is particularly valuable for homeowners with high electricity usage or those planning to add an EV or heat pump.
Every roof is different. Get a personalized savings estimate based on your actual electricity usage, roof orientation, and local utility rates in Connecticut.
Or call us directly: (877) 772-6357