Connecticut Solar Incentive Programs
Key Incentives at a Glance
Connecticut replaced traditional net metering with RRES in 2022, a more predictable, higher-value structure for most homeowners.
RRES, Netting Tariff
Excess solar exports receive credits at the full retail rate (~$0.3224/kWh, April 2026). A Solar Energy Adjustment of $0.0402/kWh applies to all production, reducing net effective rate to ~$0.28/kWh. Credits roll over indefinitely. 20-year lock-in.
RRES, Buy-All Tariff
All solar production sold to the utility at a fixed rate for 20 years. No Solar Energy Adjustment. Typically better for high-production systems. Electricity for home use purchased at retail. Best for owners who value price certainty over 20 years.
Sales Tax Exemption
Connecticut fully exempts solar equipment and installation labor from the 6.35% state sales tax. On a typical $22,000 system, this saves approximately $1,400 at purchase, automatically, no application required.
Property Tax Exemption
Solar installations are excluded from property value assessments. File a declaration with your town assessor to activate. Savings vary by town mill rate but typically run $150 to $400/year for a residential system.
Smart-E Loan (Green Bank)
Connecticut Green Bank offers low-interest financing through participating lenders. Rates currently 6.99% to 7.99% APR, 5 to 15 year terms, no money down. Up to 25% can cover related improvements (roof repairs). No federal ITC required to make the math work.
Energy Storage (ESS Program)
Battery storage earns an enrollment incentive ($30/kWh standard) plus 10-year performance payments ($300/kW/year) for grid dispatch participation. Enhanced rates for underserved ($450/kW/yr) and low-income ($550/kW/yr) customers. Program runs through December 31, 2030.
RRES Tariff Comparison: Which Is Right for You?
Connecticut's RRES program replaced net metering in 2022. Both tariffs lock in for 20 years, choose carefully.
Netting Tariff
- Credits at full retail rate (~$0.32/kWh) for excess exports
- Solar Energy Adjustment of $0.04/kWh deducted from all production
- Credits roll over indefinitely month to month
- Self-consumption of solar counts against your retail bill
- Better when you consume most of your production onsite
- Surplus credits carry forward month to month and are paid out only when you close your account
Buy-All Tariff
- 100% of all solar production sold to utility at fixed rate
- No Solar Energy Adjustment charge
- Home electricity purchased at current retail rates
- Rate locked for 20 years, strong income certainty
- Better for large systems with high total production
- Simpler billing, two separate meters
Green Bank Financing: Smart-E Loan
For homeowners who want to go solar without paying cash upfront.
| Loan Detail | Current Terms |
|---|---|
| Maximum loan amount | $50,000 |
| Interest rate (APR) | 6.99% to 7.99% (varies by loan term) |
| Loan terms | 5, 7, 10, 12, or 15 years (15-year availability varies by lender) |
| Down payment | None required (no money down) |
| Non-solar use | Up to 25% of loan can fund related work (roof repair, panel upgrades) |
| Availability | Through participating CT lenders, find lenders at ctgreenbank.com |
| Who qualifies | Connecticut homeowners; credit qualification applies |
| Key advantage | No ITC required, designed to work without the federal credit |
Full Incentive Stack Summary
What a CT homeowner with an 8 kW system qualifies for in 2026.
| Incentive | Value (8 kW system) | Status |
|---|---|---|
| Sales Tax Exemption (6.35%) | ~$1,400 saved at purchase | Active |
| Property Tax Exemption | ~$200 to 400/year (file with town assessor) | Active |
| RRES Buy-All Tariff income (20 yr) | ~$3,900/year (~10,400 kWh × $0.3289) | Active |
| RRES Netting Tariff credits | Retail-rate credits on all exported kWh (~$0.28 net effective) | Active |
| Smart-E Loan (Green Bank) | 6.99 to 7.99% APR financing up to $50K | Active |
| Battery ESS Incentive (if adding storage) | $30/kWh + $300/kW/yr performance payments | Active through 2030 |
| Federal ITC (Section 25D) | $0, expired Dec 31, 2025 | Expired |
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