Although Connecticut isn’t known as the land of solar, it is quickly becoming an excellent state to purchase and install solar panels. New tech development and various financial incentives have made it easier to produce solar electricity in less sunny climates. A solar power system in your home can ensure minimal initial system costs and steady savings for decades to come.
For these reasons and more, it is a great time to buy a new solar energy system in Connecticut. Keep reading to learn how your purchase and installation of solar panels in Connecticut can become cheaper and more efficient.
Why Go Solar in Connecticut?
Although it may not have a wealth of sunshine, Connecticut is a great place to invest in solar. With an average of 194 sunny days per year, Connecticut is not much below the American average of 205 sunny days per year. Despite its somewhat average sun coverage, Connecticut has benefited from rapid improvements in photovoltaic technology, which has increased the efficiency of solar panels so that even cloudier and colder climates can sustain solar energy production.
Connecticut is also an excellent state to purchase solar energy systems because of the existence of federal, state-level, and local financial and tax incentives designed to lessen the cost of buying and installing solar panels.
In particular, the government of Connecticut has a Renewable Portfolio Standard, which requires energy producers to produce a certain amount of electricity from renewable sources. Residents of Connecticut can benefit from the existence of many local solar providers throughout the state. These providers offer customers the opportunity to entertain competing quotes while ensuring they receive the best quality service and equipment.
Finally, solar panels can dramatically increase your home’s value. According to Zillow, the average home experiences a 4.1% increase in value after adding a solar power system. In Connecticut, the average home value is $340,415, meaning homeowners can expect to see their home values increase by an average of $13,957 after installing a photovoltaic energy system.
Connecticut Solar Cost
The total cost of solar installations in Connecticut ranges from $13,090 to $17,710. On a cost-per-watt basis, solar panel installation in Connecticut falls between $2.62 and $3.54. Given the national average of $3.00 per watt, Connecticut is far from the pricier end when buying solar energy systems.
You should also note that these costs have decreased significantly in recent years. In fact, over the past five years, prices have dropped more than 45% in Connecticut. If you purchase a larger system (more watts), you will spend more to gain additional energy production. With energy bills increasing amid high oil and gas prices, the relative cost of solar is surely bound to continue declining.
How Much Can You Save on Solar in Connecticut?
Although you may face steep upfront costs to purchase and install your solar system, you can save money annually with solar, thanks to your system’s electricity. The mechanism behind the savings functions in this manner: when solar panels produce electricity for your home, they reduce the amount of energy that you pull from the grid, thus lowering your utility bills.
People living in Connecticut save between $30,290 and $40,981 over 20 years. With a payback period ranging from 7.4 to 10 years, you can save thousands of dollars per year just close to a decade after purchasing your photovoltaic (PV) equipment.
The Best Solar Incentives, Tax Credits, and Rebates in Connecticut
There are several public and private incentives in Connecticut that help you save on your purchase of solar panels:
| Incentive | Summary | End Date |
| Federal Solar Tax Credit (ITC) | Connecticut residents can take advantage of the Federal Solar Tax Credit and get a rebate of 30% applied to their tax returns. | 2032 |
| Connecticut Solar Property Tax Exemption | The state of Connecticut will exempt property taxes on the added value to your home from installing a solar energy system. | None |
| Sales and Use Tax Exemption for Solar and Geothermal Systems | In Connecticut, you can receive a state sales tax exemption of 6.35% on purchasing a home solar system. | None |
| Net Metering | Net metering allows homeowners that create excess energy to use it as a credit on their next electric bill. All energy providers are required to offer this option to homeowners. | None |
| Connecticut Green Bank Residential Solar Investment Program (RSIP) | Residents of Connecticut can receive an upfront cost reduction of $0.426 per purchased watt based on system size (Max. size 10 kW). If you wish to take on a solar lease, you can receive compensation of $0.30 per kWh produced by the solar power system (Max. size 20 kW). | None |
| Energy Efficiency Loan Program | The Connecticut state government offers loans for eligible families to purchase solar energy systems. These loans can amount to $40,000 for 5-12 years at interest rates between 4 percent and 7 percent. | None |
| USDA REAP GRANT | REAP helps agricultural producers and rural small businesses reduce their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems. Eligibility for the REAP program depends on you being an agricultural producer, with at least 50 percent of your gross income coming from agricultural operations and small businesses in eligible rural areas. | None |
| C-PACE Financing Program | The CT state government offers access to financing for energy-efficient power systems and upgrades through the C-PACE financing program. This program allows property owners to finance their purchase of solar energy systems and to pay back the money owed through a voluntary property tax assessment. While it may not lower the cost of going solar, it can be a great means of financing for homeowners that can’t take out traditional loans. | None |
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a federal tax credit available for home solar systems purchased and installed by the end of 2032. This credit is determined by the total cost of the solar power system in question and is applied to your next income tax return. As a program, the ITC has helped create hundreds of thousands of solar jobs while bringing billions of dollars into the economy since being enacted in 2006.
Connecticut Solar Property Tax Exemption
Connecticut will exempt property taxes on the added value to your home that comes with installing a solar energy system.
Connecticut Net Metering
Electricity companies in Connecticut have all adopted net energy metering, a policy that ensures your solar panels will be connected to the public-utility power grid, and that surplus power created by your panels will be transferred to the grid. You can offset the cost of power drawn from the electricity grid due to net metering.
The minimum compensation you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, it remains hugely beneficial for owners of solar energy systems.
Sales and Use Tax Exemption for Solar and Geothermal Systems
In Connecticut, you can receive a state sales tax exemption of 6.35% on purchasing a home solar system.
Connecticut Green Bank Residential Solar Investment Program (RSIP)
Residents of Connecticut can receive an upfront cost reduction of $0.426 per purchased watt based on system size (Max. size 10 kW). If you wish to lease your system, you can receive compensation of $0.30 per kWh produced by the solar power system (Max. size 20 kW).
Connecticut Green Bank Solar for All Program
Eligible low-income households in Connecticut can access solar energy through a Power Purchase Agreement (PPA) at a special rate. This program is run through Connecticut’s Residential Solar Investment Program (RSIP).
Energy Efficiency Loan Program
The government of Connecticut offers loans for eligible families to purchase solar energy systems. These loans can amount to $40,000 for 5 to 12 years at interest rates between 4 percent and 7 percent.
Commercial Connecticut Solar Incentives
Solar Incentives for Nonprofits and Businesses in Connecticut
Unfortunately, there are few to no specific financial incentives for businesses or nonprofits in Connecticut. However, the C-PACE Financing Program may interest most property owners. The government of Connecticut offers access to financing for energy-efficient power systems and upgrades through the C-PACE financing program.
This program allows property owners to finance their purchase of solar energy systems and to pay back the money owed through a voluntary property tax assessment. While it may not lower the cost of going solar, it can be a great means of financing for homeowners that can’t take out traditional loans.
Non-tax-exempt businesses are eligible for a tax credit through the ITC program, just like private residents. This also amounts to a 30% credit and is available through the end of 2032.
USDA REAP Grant
The United States Department of Agriculture (USDA) has launched a program designed to increase investments in clean energy called the Rural Energy for America Program (REAP). REAP helps agricultural producers and rural small businesses lower energy costs and consumption by financing loans and grant funding to purchase and install renewable energy systems.
You are eligible to participate in the REAP program if you are an agricultural producer with at least 50 percent of your gross income coming from agricultural operations or a small business in eligible rural areas.
Final Thoughts: The Best Connecticut Solar Incentives
While you may not generally associate Connecticut with solar energy, it’s time to start doing so. Thanks to its various financial incentives, rebates, and the emergence of newer solar technology, Connecticut is now an excellent place to launch your solar project. There is no reason not to buy a solar energy system, especially with variable energy prices worldwide and climbing utility bills at home. If you are interested in purchasing, there are premier solar energy companies that can help.
Connecticut Solar Incentives FAQs
Is solar worth it in Connecticut?
Yes, we highly recommend investing in solar energy systems in Connecticut. Solar can save you tons of money on your utility bills and help reduce your production of emissions and your carbon footprint. Plus, various federal, state, and local financial incentives are available in Connecticut to purchase solar panels accessible to anyone!
How much will my electricity bill go down with solar in Connecticut?
People living in Connecticut save between $30,290 and $40,981 over 20 years. With a payback period ranging from 7.4 to 10 years, you can save thousands of dollars per year in just close to a decade after purchasing your solar PV system.
How much does it cost for solar panels in Connecticut?
The total cost of solar installations in Connecticut ranges from $13,090 to $17,710. On a cost-per-watt basis, solar panel installation in Connecticut falls between $2.62 and $3.54. Given the national average of $3.00 per watt, Connecticut is far from the pricier end when buying solar energy systems.
Can you get solar panels for free in Connecticut?
No, you probably won’t be able to get free solar panels in the state of Connecticut. However, residents of Connecticut are lucky to have the support of a large variety of federal, state, and local financial incentives that will help to minimize the costs associated with purchasing a new solar energy system.
What solar rebates are available in Connecticut?
Connecticut has many federal, state, and local financial incentives for purchasers of solar energy systems. These include the federal government’s Solar Investment Tax Credit (ITC), the Connecticut Property Tax Exemption, and many state incentives.
How many homes in Connecticut have solar panels?
Connecticut has enough solar installed to power nearly 150,000 homes, accounting for 2.53% of the state’s electricity production.
Do solar panels increase property taxes in Connecticut?
No, your taxes won’t increase. This is because Connecticut will exempt property taxes on the added value to your home that comes with installing a solar energy system. The property tax exemption provides yet another excellent reason to invest in solar!
How much can you write off for solar panels on taxes in Connecticut?
Connecticut taxpayers can write off many costs associated with purchasing new solar panel systems. Check out the Connecticut government’s website for more information about incentive programs.
Today's Homeowner’s Solar Companies Rating Methodology
At Today's Homeowner, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.
Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated all of each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all of the solar energy companies on the market so you can have the information you need to make the best choice for your home.
We developed a formula to objectively determine the best solar energy companies and give each a score out of 100 based on the following criteria:
- Plan Options (30): Do they provide a variety of plan options? We looked at the number of plans each solar energy company offered and the flexibility of adjusting the plan.
- Services offered (20): How many services are offered in each plan? We looked at whether the company manufactures its own solar panels, whether it contracts out installation, and what additional products each company offers.
- Trust (10): What do customers say after their solar panels are installed? Does this company offer a guarantee? We considered how satisfied customers are post-service if the company does what it says it will, BBB accreditation, and service guarantees.
- Prices (10): How reasonable are the costs of the plan or service in comparison to the industry average? We compared the costs of each company to competitors that offer the same solar energy services.
- Unique perks (10): Does the company offer discounts or special services such as financial incentives, rebates, or a useful mobile app? We looked for extras each company offers that set them apart from the competition.
- Customer Service (10): How is the customer experience when contacting the company? We considered the speed of response, weekend/holiday availability, and ease of communication through phone calls, email, and online chat functions.
- Nationwide availability (10): How many states does the company offer its services? Companies that operate nationally and in all zip codes are favored over those with limited availability.
