Buy, lease, or finance your solar system — each path has different impacts on your monthly budget, tax benefits, and long-term savings. Here's the honest breakdown for CT homeowners.
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Most CT homeowners choose between buying outright (or with a loan), leasing, or a Power Purchase Agreement. Each has a different effect on your cash flow, tax position, and how much of the savings you keep.
| Factor | Solar Loan | Solar Lease | PPA |
|---|---|---|---|
| Upfront cost | $10K-$35K | $0 | $0 |
| You own the system | Yes | No | No |
| Claim federal ITC | Yes | No | No |
| HB05442 benefit | Yes | No | No |
| Savings go to you | 100% | Reduced by lease fee | Only the spread |
| Breakeven timeline | 7-12 years | Never (no equity) | Never (no equity) |
| Home sale impact | Positive (adds value) | Must transfer/buy out | Must transfer/buy out |
| Maintenance | You bear costs | Installer covers | Installer covers |
| Best if... | Credit approved, long-term stay | No cash, want simplicity | No cash, want lowest risk |
Eversource formally filed for an 18% rate increase on July 15, 2026, pending PURA review — expected to take effect July 1, 2027 if approved. Every month you wait, you pay more to the utility instead of building equity in your own system.
Financing lets you lock in installation costs today while utility rates climb. The math is shifting in solar's favor.
See How an 18% Rate Hike Affects Your Monthly BillHB05442 caps the property tax exemption for solar energy systems at $0 for new installations — meaning new solar installations no longer receive a property tax abatement in Connecticut. This doesn't change your financing terms directly, but it does affect the total economic picture. The 6.35% CT sales tax exemption on solar equipment remains in place. Consult your local tax assessor for your specific situation.
The residential Section 25C tax credit expired January 1, 2026. The commercial ITC under Section 48 remains available for businesses and some commercial-scale installations. Commercial solar lease and PPA arrangements may pass through some of these benefits to business customers. Ask your installer or a tax professional about your specific situation.
Home equity loans typically offer lower interest rates (5-9%) because they're secured by your home, but involve closing costs and take longer to approve. Personal loans are faster (days to 2 weeks) but have higher rates (8-15% for unsecured). For most homeowners, a home equity line of credit (HELOC) offers the best combination — low rates with flexibility to draw only what you need.
Most solar loan programs require a minimum 640-680 credit score. Better scores (720+) qualify for the lowest rates. Some programs have flexible underwriting that considers your home equity. CT credit unions often offer more flexible terms than national lenders for members.
Yes. Most solar lenders will include your existing mortgage payment in the debt-to-income calculation. A first mortgage with good payment history actually helps your application. Many homeowners use a HELOC (second mortgage) to access home equity for solar without refinancing their first mortgage.
In a solar lease, you pay a fixed monthly fee regardless of how much electricity your system produces. In a PPA, you pay a rate per kilowatt-hour of electricity actually generated. PPAs can be better if your system underperforms, but both mean you don't own the equipment and can't claim the ITC.
Battery storage can be included in a solar loan or purchased separately. CT's ESS (Energy Storage Solutions) program restructured April 1, 2026 with incentives of $30/kWh standard or $130/kWh for grid-edge enrollment. HB5340 (May 2026) explicitly legalizes plug-in solar systems up to 1,200W in Connecticut. Battery costs can be financed alongside your solar system in many cases.
Get free quotes from Connecticut solar installers who offer loans, leases, and PPA options. Compare real numbers before you decide.
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