Connecticut Solar Incentives 2026: What CT Homeowners Can Access Now

Sales Tax Exemption — Save 6.35%

Potential Savings: 6.35% of total system cost

Connecticut exempts solar energy equipment from the state sales tax. Panels, inverters, batteries, and related equipment are all covered. This exemption applies automatically through your installer — you don't need to file anything separately.

Example: On a $25,000 solar system, the sales tax exemption saves you $1,587.50 compared to a taxable purchase.

Property Tax Exemption — No Tax on Added Value

Benefit: No property tax increase from solar

Solar panels can increase your home's assessed value. Connecticut law exempts that added value from property taxes — so the improvement doesn't result in higher annual property taxes.

This exemption applies for the duration of the program. Your assessor handles this automatically in most municipalities.

Important (HB05442, effective July 1, 2026): Connecticut's new solar tax law (HB05442, signed June 8, 2026) expands the state's solar energy tax scope and limits the property tax exemption for certain installations. Not all solar systems will qualify for the full exemption going forward. We recommend discussing the specific tax implications for your installation with your installer before signing a contract.

Smart-E Loan — Low-Interest Financing

Rate Range: 4.49%–6.99% APR | Up to $75,000 | Terms 5–12 years

Administered by the Connecticut Green Bank through participating lenders, Smart-E Loans are designed to make solar and energy upgrades accessible:

• Borrow up to $75,000 for solar + related improvements
• Terms from 5 to 12 years
• Rates 4.49%–6.99% APR (as of 2025 — confirm current rate with lender)
• Up to 25% of the loan can go to non-energy improvements — including roof replacement if your roof needs work before solar installation
• Available for homes with up to 4 residential units

Key advantage: If your roof is near end-of-life, you can finance both the roof work and solar in one loan.

Netting Tariff — Best for Most Homeowners

Earn credits at retail electricity rate + REC value

• When your panels produce more than you use, excess goes to the grid and you earn credits
• Credits apply when you draw from the grid (nights, cloudy days)
• Credits roll over indefinitely — unlike the old net metering which expired March 1
• 2026 REC payment rate: $0 (income-based incentives may still apply)

Best for homeowners who use more electricity in evenings and winter — the credits accumulate and never expire.

Buy-All Tariff — Fixed Rate Guarantee

Fixed at $0.3289/kWh for all electricity your panels produce — 20-year guarantee (Eversource 2026 rate)

• All electricity your system produces goes to the grid
• You buy all your power from your utility at retail rates
• Rate is locked at $0.3289/kWh for 20 years from enrollment — confirmed Eversource 2026 rate
• Choose to receive credits as monthly bill offset, quarterly cash payment, or a mix

Best for homeowners with high solar production who want rate certainty and predictable income.

ESS Enrollment Incentive — Base Tier

Up to $250/kWh upfront enrollment incentive when your battery is installed and connected to the grid

Typical home battery (10–13 kWh): $2,500–$3,250 in enrollment incentives

This base enrollment tier is available to all qualifying CT homeowners.

Active Dispatch Performance Payments — Tiered Add-On

Up to an additional $350/kWh in performance-based payments when your battery is called upon during grid peak events

• Grid Peak Events: Called during high-demand periods (summer air conditioning, winter heating) — your battery safely discharges power back to the grid
• Standard household: $250/kWh enrollment + up to $350/kWh performance = $600/kWh maximum total
• Grid Edge / Underserved areas: Higher performance tiers — $350–$600/kWh for qualifying territories
• Low/Moderate Income (LMI): Enhanced tiers — $350–$600/kWh for income-qualifying households
• Payments distributed over 10 years of program participation

Example: A 10 kWh battery in a standard Eversource territory could earn $2,500 enrollment + $3,500 Active Dispatch = $6,000 total over the program period.

Why Consider Battery

• Backup power during outages (especially valuable with increasing severe weather in New England)
• Store solar energy produced during the day to use evenings and nights
• Reduce exposure to peak electricity rates — store solar when rates are low, use battery during peak
• Earn performance payments through Active Dispatch — your battery works for the grid when called upon
• Available for both new solar + battery installs and battery retrofits