Is solar worth it in Connecticut in 2026?
For a home with a $150 monthly bill, a 4.8 kW system in Connecticut costs about $16,004 at the state's median price and pays for itself in roughly 10.3 years, with no federal tax credit. That ranks 3 of 25 states we cover.
28.0¢per kWh
Source: EIA, 2026 year to date
1,327kWh per kW a year
Source: PVGIS, NSRDB data
$3.30per watt
Source: Berkeley Lab
Calculator · 2026 data, no federal tax credit
How long would solar take to pay for itself?
Simple payback
10.3 years
- System size
- 4.8 kW
- Installed cost
- $16,004
- Savings, year one
- $1,548
- Net over 25 years
- $20,461
Sized to cover your yearly use at today's price. Panels lose 0.5% a year; prices held flat. Method
How Connecticut pays for your solar power
Net metering at the retail rate. Since 2022 new systems choose the RRES Netting tariff (net exports credited at the retail rate, less a 4.02 cent charge on all production for 2026 enrollees) or a fixed 20-year Buy-All tariff.
In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 77% of retail, so each solar kWh is worth 86% of the retail price on average. Change it if your utility pays more or less. Method
| State or utility incentive | What it is worth |
|---|---|
| RRES Buy-All tariff (Eversource and UI) | $0.3289 per kWh for all production, locked 20 years, for applications received from Jan 1, 2026 |
| Energy Storage Solutions (battery incentive) | Enrollment incentive of $30 per kWh of battery capacity ($130 for grid-edge customers) plus performance incentives of $300 per kW per season-year (standard), $450 underserved, $550 low-income, paid for 10 years, for enrollments from April 1, 2026 |
| Property tax exemption for residential solar | Exempt from local property tax if annual production does not exceed estimated annual load; apply to the town assessor |
| Sales and use tax exemption for solar systems | Solar electric systems, related equipment and installation services are exempt from sales tax |
How exports are credited
Connecticut’s old net metering program and the Green Bank’s RSIP rebate were replaced on January 1, 2022 by the Residential Renewable Energy Solutions program, known as RRES. The Public Utilities Regulatory Authority (PURA) runs it under Public Act 19-35 (Conn. Gen. Stat. 16-244z), and Eversource and United Illuminating (UI) administer it. It covers residential systems up to 25 kW AC. PURA describes it as a six-year program and reviews rates every year, so the numbers below apply to applications received from January 1, 2026.
Each homeowner picks one of two tariffs, and the choice cannot be changed later for that system.
Netting tariff. Net excess generation, meaning what the system exports after subtracting what the home draws, is credited on the bill at the prevailing retail rate, supply and delivery together. Credits carry over from month to month, can offset any charge on the bill, and cannot be cashed out until the account closes. The REC payment for 2026 is $0.00 per kWh in both utility territories. The catch for 2026 is a Solar Energy Adjustment of $0.0402 per kWh billed on total solar production, not just exports. That charge weighs directly on payback.
Buy-All tariff. The utility buys all production and the home buys all its power at normal rates. The 2026 rate is $0.3289 per kWh, inclusive of energy and RECs, locked for 20 years from enrollment. This option is common with leased and third-party owned systems, which can assign part of the payment to the owner.
Customers who were already net metered stay on that rate until their system is removed. Adding panels under Netting moves the account to the Netting rate.
State incentives in 2026
- Energy Storage Solutions. Batteries paired with solar can earn an enrollment incentive of $30 per kWh of capacity, or $130 per kWh for grid-edge customers who see more frequent outages, for applications from April 1, 2026. Performance incentives of $300 per kW (standard), $450 (underserved communities) or $550 (low-income) are paid seasonally for 10 years, based on how the battery performs in summer and winter dispatch events. Before April 1, 2026 the program paid a larger upfront incentive instead. It is funded by ratepayers and run by PURA, the Green Bank, Eversource and UI.
- Property tax. Residential solar installed after October 1, 2007 is exempt from property tax if its estimated annual production does not exceed estimated annual load. An application goes to the town assessor.
- Sales tax. Solar electric systems, related equipment and installation services are exempt under Conn. Gen. Stat. 12-412(117).
- Adders. Low-income households get an extra $0.055 per kWh under Buy-All or $0.035 under Netting, and economically distressed municipalities get $0.0275 or $0.0175.
The federal 30 percent credit ended for systems installed after December 31, 2025, and the sources reviewed list no Connecticut income tax credit for solar.
What it means for payback
Under Netting, each kWh used at home is worth the full retail price, and exported kWh are credited the same way, so system size can follow household use without a heavy penalty. The fixed charge on every kWh produced is the main drag. Buy-All pays a set rate regardless of use, so it suits homes with low usage or roofs larger than the home needs. PURA says rates were set to give roughly the same return for either option, but that target predates the 2026 changes and varies by home. A battery adds backup power and, under Energy Storage Solutions, a stream of performance payments.
Other rules worth knowing
- Eligible homes built before 1980 need a Home Energy Solutions audit or equivalent to qualify for RRES.
- Projects must go through utility interconnection even if they never export.
- A project that already received RSIP money cannot enroll in RRES.
Sources
- EIA Electric Power Monthly, table 5.6.B, residential average price, July 2026 YTD
- PVGIS 5.2 (European Commission Joint Research Centre) with NSRDB solar radiation data (1 kW peak, fixed, south-facing, 20° tilt, 14% system losses, 2005–2015 average at the city shown)
- Berkeley Lab, Distributed Solar & Storage: 2026 Data Update (median installed price, host-owned residential PV installed in 2025)
- PURA: Residential Renewable Energy Solutions Program
- Eversource and UI: RRES Frequently Asked Questions (published 1/1/2026)
- Energy Storage Solutions: program changes for April 1, 2026
- Energy Storage Solutions: energy storage for your home
- Conn. Gen. Stat. chapter 203, section 12-81(57) (property tax exemption)
- Conn. Gen. Stat. chapter 219, section 12-412(117) (sales tax exemption)