A no-BS guide for Connecticut homeowners navigating solar after the federal tax credit
The Elephant in the Room: The Federal Tax Credit Is Gone
Let’s address this directly because you’ve probably heard conflicting information.
The Residential Clean Energy Credit—the 30% federal tax credit that had been available for solar installations—is no longer available for systems installed after December 31, 2025.
For Connecticut homeowners who were planning to purchase a solar system outright or finance with a loan, this represents a real change. On an average $18,000 system, that’s roughly $5,400 that’s no longer on the table.
But here’s what most articles won’t tell you: If you’re considering a solar lease or Power Purchase Agreement (PPA)—which is how most Connecticut homeowners go solar—you were never going to receive that tax credit anyway. The financing company claimed it, not you. What mattered to you was your monthly payment and your savings compared to Eversource.
That hasn’t changed.
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Connecticut Solar Incentives in 2026
What's Changed, What Remains, and What It Means for You
No Longer Available
Federal Investment Tax Credit (ITC)
30% credit on total system cost for purchased systems
RSIP Direct Rebates
Per-watt rebates phased out in 2022
Still Available in 2026
100% Sales Tax Exemption
No sales tax on equipment or installation
100% Property Tax Exemption
Added home value not taxed
RRES Netting Program
Full retail rate credits, roll over indefinitely
Smart-E Loans
4.49%–6.99% APR, 5–12 year terms
Energy Storage Solutions Program
Connecticut's best-kept secret — and it's getting BETTER
Example: A 13.5 kWh battery at the standard rate = $3,375 upfront + performance payments for 10 years
*Based on 13.5 kWh battery. Program runs through December 31, 2030.
Key Dates to Know
The Real Question Hasn't Changed
Would you rather pay a fixed amount for energy you control, or a rising amount for power you rent from Eversource?
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What Connecticut Incentives Are Still Standing in 2026
Connecticut has its own robust incentive structure that operates independently of federal tax policy. Here’s what’s still available:
- 100% Sales Tax Exemption
When you install solar in Connecticut, you pay zero state sales tax on the equipment and installation. On a typical system, this saves homeowners roughly $1,100–$1,400. Connecticut law gives a 100% sales and use tax exemption for buying and installing solar or geothermal power systems. This exemption has no expiration date.
- 100% Property Tax Exemption
Here’s something many homeowners don’t realize: solar panels increase your home’s value, but in Connecticut, your property taxes won’t go up if solar panels increase your home’s value. This exemption protects you from being penalized for improving your home’s energy efficiency.
- The RRES Program (Connecticut’s Net Metering Replacement)
Though traditional net metering in Connecticut is no longer available, the state’s Residential Renewable Energy Solutions (RRES) program provides similar benefits.
You have two options:
- Netting Tariff: Excess solar energy that you send to the grid earns credits to offset future energy costs. These credits can roll over indefinitely. Your home uses solar power first, and any excess goes to the grid at full retail rate.
- Buy-All Tariff: The Buy-All rate for approved applications submitting in 2025 is $0.3195 per kWh. This rate is locked in for 20 years. You sell everything your panels produce and buy what you need from the utility.
Important timeline: The current RRES structure is guaranteed through December 31, 2027. What happens after that is uncertain, which is why locking in now—while the rules are favorable—matters.
- Smart-E Loan Program
The Connecticut Green Bank still offers the Smart-E Loan for homeowners who want to purchase their system. As of 2025, loan terms range from 5 to 12 years with interest rates between 4.49% and 6.99% standard APR.
A lesser-known benefit: you can use up to 25% of it for non-energy-related home improvements. For example, if you need to replace or repair your roof before going solar, you can use the loan to cover at least part of it.
Could You Save With Solar?
CT homeowners are saving $100-$200+/month. Check your address.
The Battery Incentive Most People Don’t Know About
Here’s where Connecticut actually leads the nation. The Energy Storage Solutions Program offers some of the most generous battery storage incentives in the country—and these are completely unaffected by federal policy changes.
Residential customers can now receive up to $16,000 in upfront incentives, an increase from the previous maximum incentive of $7,500.
How it works:
If you participate in Connecticut’s Energy Storage Solutions program, you grant your utility company (Eversource or United Illuminating) access to your battery when the grid is stressed to reduce peak electricity demand. In exchange, you earn an upfront incentive to reduce the cost of your battery and money for every kW your battery dispatches to the grid, which are paid twice a year for 10 years.
Enhanced incentives for qualifying homeowners:
For customers that qualify as low-income, the upfront incentive increased to $600 from $400 per kWh. For customers that reside in an underserved community, the upfront incentive increased to $450 from $300 per kWh.
If you live in Bristol, New Haven, Hartford, or other designated distressed municipalities, you may qualify for the higher tier.
The program runs through December 31, 2030, giving you time to plan—but the best incentive rates typically go to early adopters before program funds are reallocated.
What This Means for Different Types of Connecticut Homeowners
If you’re on a fixed income: The loss of the federal tax credit doesn’t affect lease/PPA customers directly. What matters is whether your monthly solar payment is lower than your Eversource bill—and with rates continuing to climb, that math still works. The battery incentive program is particularly valuable for storm resilience.
If you’re analytical and want the numbers: Yes, the economics have shifted for cash purchases. But run the actual numbers: Connecticut has some of the highest electricity rates in the nation (often 25+ cents/kWh), and Eversource has raised rates consistently. The question isn’t “is solar as good a deal as it was in 2024?” It’s “is solar still better than paying Eversource for 25 years?” For most homes, the answer is still yes.
If you’re worried about outages: The battery incentive program is the headline here. Unlike generators that run on fossil fuels, batteries are a cleaner, quieter option for powering your home during an outage. With up to $16,000 in upfront incentives plus ongoing performance payments, a solar + battery system is more accessible than ever.
If you need a new roof anyway: The Smart-E Loan’s 25% allowance for non-solar improvements is still your friend. Bundle the roof and solar, finance it together, and let the energy savings offset both.
What to Watch Out For: 2026 Solar Scam Red Flags
With the federal tax credit gone, some bad actors in the industry are getting creative. Watch for:
- “We can still get you the tax credit!” — No legitimate company can. If they promise this, walk away.
- Inflated system prices that assume you’re not shopping around.
- Pressure tactics claiming “incentives are about to expire” (the state incentives listed above have defined timelines—ask for specifics).
- Vague warranty language — Ask who backs the warranty and what’s actually covered.
The Bottom Line: Is Solar Still Worth It in Connecticut in 2026?
Here’s the honest answer: Solar in 2026 is not the same deal it was in 2024. The federal tax credit was significant for cash buyers.
But here’s what hasn’t changed:
- Eversource rates are still rising.
- Connecticut’s state incentives are still generous.
- The RRES program still compensates you fairly for excess production.
- Battery storage incentives are actually better than they were two years ago.
- Your monthly payment can still be lower than your utility bill.
- You can still lock in energy costs for 20–25 years instead of renting power at whatever rate Eversource decides to charge.
The question was never “are incentives available?” The question is: “Would you rather pay a fixed amount for energy you control, or a rising amount for energy you rent?”
That answer hasn’t changed.
Questions We Get Asked
“Should I wait for incentives to come back?”
We can’t predict politics. What we can tell you is that every month you wait, you’re paying Eversource instead of owning your power. The “cost of waiting” is real—run the math on 12 more months of utility bills.
“Does SAVKAT offer purchased systems or just leases?”
We offer both, but most Connecticut homeowners choose lease/PPA because it requires no money down and provides immediate savings. Happy to walk through which option fits your situation.
“What happens to my solar if I sell my house?”
Solar homes in Connecticut often sell faster and for a premium. We handle the transfer paperwork. Think of it like a renovated kitchen—enjoy the savings now, get the value back when you sell.
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