Solar Incentives in Connecticut

Connecticut's Residential Renewable Energy Solutions (RRES) program is the successor to retail-rate net metering for new residential applicants. Customers choose between the Buy-All Tariff (BAT) — under which the utility purchases all solar generation at a fixed rate (~$0.30/kWh in 2026, set per cohort) and the customer continues buying all consumption at standard retail rates — or the Netting Tariff, which combines 1:1 retail-rate netting on consumption with a production payment for net surplus. BAT is structured like a feed-in tariff and decouples generation from consumption; Netting more closely resembles classic net metering. The 20-year contract is locked at enrolment. Rates are set annually by the Connecticut Public Utilities Regulatory Authority (PURA) for each new cohort; existing cohorts retain their original rates. RRES is administered by Eversource and United Illuminating via standardised application packages. Solar leases and PPAs participate in RRES, with the rate flowing to the system owner.

Under Connecticut General Statutes § 12-81(57), solar energy systems and battery storage installed on residential or commercial property are exempt from increases in local property tax assessment. The exemption applies indefinitely. Filing is via the local municipal tax assessor; some towns require the homeowner to claim the exemption proactively, others apply it automatically upon discovering a permit. In disputed assessments, the exemption is documented under § 12-81(57) on the appeal.

Connecticut General Statutes § 12-412(78) and § 12-412(115) exempt sales of solar electric, solar thermal, geothermal, and certain wind systems and components from the 6.35% Connecticut Sales and Use Tax when installed in or on residential or commercial buildings. Both equipment and installation labour qualify when invoiced as a single bundled service. The installer applies the exemption at point of sale by collecting form CERT-140 (Renewable Energy Equipment) signed by the customer. Battery storage installed alongside solar PV is included. The exemption applies even when the customer is not the homeowner — it covers any installation on qualifying property.

The Smart-E Loan is administered by the Connecticut Green Bank in partnership with participating community banks and credit unions. Eligible measures include solar PV, battery storage, geothermal, heat pumps, insulation, high-efficiency HVAC, and EV chargers. Income qualification is typical (proof of stable income, credit score ≥ 580 generally accepted), but no specific income cap. Rates are subsidised by the Green Bank to achieve below-market pricing. Loans are unsecured, with no second mortgage required. The Smart-E loan can finance the homeowner share of cost after other rebates and incentives — useful when stacking with utility programs. Apply through any participating Connecticut lender; the Green Bank does not lend directly.