Connecticut Solar Overview
Connecticut is honestly one of the best solar markets in the country, and it is not because of incentives or sunshine. It is because of electricity rates. Eversource and UI charge some of the highest rates in the continental US. Every kilowatt-hour you produce yourself is worth $0.25-$0.30 you are not paying them. I have seen Connecticut homeowners save over $2,000 a year easily. The RSIP program ended, which is a bummer, but the pure economics of avoiding expensive grid power still make solar a solid investment here.
Connecticut combines high electricity costs with strong net metering policies, creating favorable solar economics despite modest sunshine. The state ranks among the top for solar return on investment due to the sheer cost of grid electricity.
Why Connecticut is Good for Solar
- Highest electricity rates: $0.25-$0.30/kWh means big savings
- Full retail net metering: Get full value for exports
- Property tax exemption: 100% exemption on solar value
- Sales tax exemption: No sales tax on solar equipment
- 12-month credit banking: Balance seasonal production
State Incentives
Current Connecticut Programs
- Property tax exemption: 100% exemption on added home value from solar
- Sales tax exemption: Solar equipment exempt from 6.35% state sales tax
- Net metering: Strong statewide policy with retail credits
- RSIP (ended): The Residential Solar Investment Program rebates ended
Federal Tax Credit (2026)
| Ownership Type | Federal Credit | Notes |
|---|---|---|
| Cash/Loan Purchase | None | 25D residential credit ended Dec 2025 |
| PPA/Lease | 30% | Solar company claims, passes savings to you |
Net Metering
Eversource Connecticut
- Net metering: Full retail credit for excess generation
- System limits: Up to 25 kW residential
- Credit banking: Annual true-up, bank credits up to 12 months
- Coverage: Most of Connecticut
United Illuminating (UI)
- Net metering: Full retail credit available
- Coverage: Southwestern Connecticut (New Haven, Bridgeport areas)
- Similar terms: Comparable to Eversource policy
Maximizing Net Metering Value
| Strategy | Benefit |
|---|---|
| Right-size system | Match annual production to usage for optimal credits |
| Use summer credits | Bank excess for winter when production drops |
| Time-of-use awareness | Some plans offer higher value at peak hours |
Solar Costs
Connecticut solar costs run higher than the national average due to labor costs and market conditions. Expect $2.80-$3.20 per watt installed.
| System Size | Gross Cost | Annual Savings | Payback Period |
|---|---|---|---|
| 5 kW | $14,000-$16,000 | $1,500-$1,800 | 8-11 years |
| 7 kW | $19,600-$22,400 | $2,100-$2,500 | 9-11 years |
| 10 kW | $28,000-$32,000 | $3,000-$3,600 | 9-11 years |
New England Climate
Production Factors
- Peak sun hours: 4.2 hours average daily
- Annual production: 1,200-1,300 kWh per kW installed
- Seasonal variation: Strong summer, reduced winter output
- Snow: Moderate impact, panels typically self-clear
Production Estimates by Location
- Hartford area: ~4.2 peak sun hours, 1,200 kWh/kW/year
- New Haven/coast: ~4.3 peak sun hours, slightly higher
- Northwest hills: ~4.0 peak sun hours, more cloud cover
Weather Considerations
| Factor | Impact |
|---|---|
| Summer production | Peak output, bank credits for winter |
| Winter production | 40-50% of summer, use banked credits |
| Snow | Slides off tilted panels, brief impact |
| Coastal areas | Slightly better sun, consider salt exposure |
The Bottom Line
Connecticut is one of the best solar markets in the country, not because of incentives or sunshine, but because of electricity rates. Paying $0.25-$0.30 per kWh makes every kilowatt-hour you produce incredibly valuable. With full retail net metering, property and sales tax exemptions, and 12-month credit banking, the economics work even without federal credits.
Expect 9-12 year payback periods and $30,000-$50,000+ in lifetime savings. For purchased systems, focus on competitive quotes since the federal credit is gone. For those preferring no upfront cost, PPA/lease options still benefit from the 30% federal credit through 2027.
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