Solar Incentives in Connecticut
Connecticut homeowners installing solar in 2026 have access to several active state-level programs. The state fully exempts qualifying solar energy systems, related equipment, and installation services from Connecticut sales and use tax, administered by the Department of Revenue Services. Separately, residential solar electric systems installed on or after October 1, 2007 are exempt from local property taxes, provided estimated annual production does not exceed estimated annual load. For ongoing compensation, the Residential Renewable Energy Solutions (RRES) program — the statewide successor to legacy net metering, launched under Public Act 19-35 and codified at Conn. Gen. Stat. § 16-244z — offers residential owners a choice between two 20-year tariffs administered by Eversource and United Illuminating under PURA oversight; tariff rates are fixed at enrollment but reset annually for new enrollees, meaning rates vary by utility and enrollment year. The Connecticut Green Bank's Smart-E Loan offers fixed-rate financing up to $50,000 with no money down through participating local lenders, at current standard APRs ranging from 6.99% to 7.99% depending on term length.
The federal picture changed significantly for 2026 installs. The residential Clean Energy Credit under Internal Revenue Code §25D — commonly called the 30% federal solar credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners whose systems were not placed in service by that deadline do not qualify for that credit, which meaningfully lengthens payback periods compared to prior years.
No major Connecticut state solar incentive program appears on the expired or repealed list as of this writing. Connecticut's residential electricity rate averaged approximately 30.47 cents per kilowatt-hour as of March 2026, one of the higher rates nationally, which generally improves the value of self-generated solar electricity and can offset some of the payback impact from the lapsed federal credit. Prospective buyers should model payback carefully using current PURA-approved RRES tariff rates specific to their utility.
All figures are verified as of June 2026 against official sources; programs, tariff rates, and eligibility rules change with each legislative session and PURA rate case. The Connecticut Public Utilities Regulatory Authority (pura.ct.gov) and the Connecticut Green Bank (ctgreenbank.com) are the authoritative sources for current program terms.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Connecticut
Sales and Use Tax Exemption for Solar Energy Systems
Connecticut fully exempts solar energy systems from state sales and use tax. The exemption covers sales and use of solar electricity generating systems, passive or active solar water or space heating systems, and geothermal resource systems, including related equipment, as well as sales of services for installing those systems. A homeowner therefore pays no Connecticut sales tax on either the solar equipment or its installation labor.
| Amount | 100% exemption from Connecticut sales and use tax on qualifying solar systems, related equipment, and installation services. |
|---|---|
| Who qualifies | Purchases of solar electricity generating systems, passive/active solar water or space heating systems, and geothermal resource systems, plus installation services for such systems. |
| Administered by | Connecticut Department of Revenue Services |
Source: Conn. Gen. Stat. § 12-412(117)(A) Official source →
Property Tax Exemption for Class I Renewable Energy Systems
Connecticut exempts residential renewable energy systems from property tax. Any Class I renewable energy source (including solar PV) installed on or after October 1, 2007 to generate electricity for private residential use or a farm is exempt, provided the system's estimated annual production does not exceed the estimated annual load and the installation serves a single-family home, a 2-4 unit multifamily dwelling, or a farm. Participation in net metering or state tariff programs, or third-party ownership of the system, does not disqualify the exemption; passive or active solar water/space heating systems are also covered to the extent they raise assessed value. Claimants must file a written application with the local assessor by November 1 of the assessment year.
| Amount | 100% property tax exemption for qualifying residential solar electric systems; for solar water/space heating, exemption of the added assessed value over a conventional system. Municipalities may additionally abate up to 100% of tax on commercial-scale Class I sources by local option. |
|---|---|
| Who qualifies | Class I renewable energy sources serving single-family homes, 2-4 unit multifamily dwellings, or farms, installed on or after October 1, 2007, with estimated annual production not exceeding annual load; written application to the local assessor by November 1. |
| Administered by | Municipal assessors / Connecticut Office of Policy and Management |
Source: Conn. Gen. Stat. § 12-81(57) Official source →
Residential Renewable Energy Solutions (RRES) Program
RRES is Connecticut's statewide successor to legacy net metering and the Residential Solar Investment Program, launched in January 2022 as a six-year program under Public Act 19-35, codified at Conn. Gen. Stat. § 16-244z, and authorized by PURA in Docket No. 20-07-01. Residential solar owners choose between two 20-year tariffs administered by Eversource and United Illuminating: a Netting tariff (exports credited against consumption) or a Buy-All tariff (all output sold to the utility at a fixed rate). PURA reviews the program annually; its Program Year 5 decision (Docket No. 25-08-02, December 17, 2025) updated the Buy-All and Netting rates for projects enrolling in 2026 and updated application fees.
| Amount | Tariff rates are fixed for 20 years at enrollment and are reset annually by PURA for new enrollees; 2026 rates set in Docket No. 25-08-02 (see PURA program page/manual for current cents-per-kWh values). Low-income and distressed-municipality adders apply under the Buy-All tariff per PURA decisions. |
|---|---|
| Who qualifies | Residential customers of Eversource or United Illuminating installing eligible renewable generation (primarily solar PV); enrollment through the utility program administrators. |
| Administered by | Eversource Energy and The United Illuminating Company, under Connecticut Public Utilities Regulatory Authority (PURA) oversight |
Source: Conn. Gen. Stat. § 16-244z; PURA Docket Nos. 20-07-01 and 25-08-02 Official source →
Non-Residential Renewable Energy Solutions (NRES) Program
NRES is the statewide tariff program compensating non-residential owners of distributed energy resources such as commercial solar, launched in 2022 as the successor to the LREC/ZREC and Virtual Net Metering programs. It is statutorily authorized to run six years and select up to 100 MW of clean energy annually through competitive solicitations and fixed tariffs administered by Eversource and United Illuminating. PURA's Program Year 5 decision (Docket No. 25-08-03) raised 2026 price caps for small, medium, and large project categories to account for federal investment tax credit changes and set an annual budgetary cap on program costs.
| Amount | Compensation via competitively bid or fixed tariff rates by project size category; 2026 price caps increased per Docket No. 25-08-03. Up to 100 MW selected annually statewide. |
|---|---|
| Who qualifies | Non-residential customers (commercial, industrial, municipal, etc.) of Eversource or United Illuminating with eligible Class I renewable projects; program objectives include participation from underserved and environmental justice communities. |
| Administered by | Eversource Energy and The United Illuminating Company, under PURA oversight |
Source: Conn. Gen. Stat. § 16-244z; PURA Docket Nos. 20-07-01 and 25-08-03 Official source →
Statewide Shared Clean Energy Facility (SCEF) Program
Connecticut's statewide community solar program, established under Public Act 18-50 and codified at Conn. Gen. Stat. § 16-244z(a)(1)(C), procures new Class I renewable projects of 100 to 5,000 kW (AC) through annual competitive solicitations, with 20-year terms and an annual program capacity of 50 MW. Eversource and United Illuminating customers can subscribe to a selected facility and receive an on-bill credit that lowers their electric bill. Public Act 24-31 extended the program from six to eight procurement years, and the Year 7 procurement was approved by PURA in Docket No. 25-08-04 (December 17, 2025), with the Year 7 RFP issued in January 2026.
| Amount | Subscribers receive on-bill credits; project compensation set through competitive bidding (Year 7 bid preferences: 40% for solar canopies, 20% for brownfield/landfill sites, ranking purposes only). 50 MW procured per year. |
|---|---|
| Who qualifies | Eversource and United Illuminating customers in Connecticut may subscribe (eligibility rules on the utilities' SCEF pages); developers bid projects of 100-5,000 kW AC. |
| Administered by | Connecticut DEEP and PURA, with Eversource and United Illuminating as program administrators |
Source: Conn. Gen. Stat. § 16-244z(a)(1)(C); Public Acts 18-50, 22-14, 24-31; PURA Docket No. 25-08-04 Official source →
Smart-E Loan
The Connecticut Green Bank's Smart-E Loan provides no-money-down, fixed-rate financing through a network of local lenders and contractors for more than 90 home energy improvements, including solar panels and battery storage. Current standard APRs are 6.99% for 5-, 7-, and 10-year terms, 7.49% for 12 years, and 7.99% for 15 years, with a maximum loan of $50,000; up to 25% of the loan may fund non-energy or healthy-home measures such as roof repairs before going solar. Final underwriting is by the participating lender.
| Amount | Loans up to $50,000; standard APRs 6.99% (5/7/10-year), 7.49% (12-year), 7.99% (15-year); no money down. |
|---|---|
| Who qualifies | Owner-occupied 1-4 unit residential buildings located in Connecticut (condos must be individually metered); credit and debt-to-income underwriting by participating lenders. |
| Administered by | Connecticut Green Bank (quasi-public state agency) with participating local lenders |
Source: program page Official source →
Commercial Property Assessed Clean Energy (C-PACE)
Connecticut's C-PACE program, administered by the Connecticut Green Bank, lets owners of commercial, industrial, nonprofit, and 5-plus-unit multifamily buildings finance clean energy upgrades, including solar PV, with long-term financing repaid through a benefit assessment placed on the property. The property must be located in a municipality that has opted into C-PACE by resolution, and existing mortgage holders must consent to the assessment. Both retrofit and new-construction financing are offered.
| Amount | Long-term, fixed-rate financing sized to the project and repaid via a property assessment; terms set with private capital providers under Green Bank program guidelines. |
|---|---|
| Who qualifies | Nonresidential properties or multifamily properties with 5+ units, in C-PACE opt-in municipalities; legal owner consent, mortgage-holder consent, and a property tax ID required. |
| Administered by | Connecticut Green Bank |
Source: program page Official source →
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Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.