The 30% Solar Tax Credit Is Gone— But Connecticut Homeowners Can Still Win
How the "Big Beautiful Bill" changed solar financing—and why the new path might actually be better for you.
"Solar Tax Credit Ends!" "Homeowners Lose 30% Incentive!" If you've been following the news, you might think you "missed the boat" on solar.
The tax credit didn't disappear—it just moved. And for many Connecticut homeowners, the new structure might actually put more money in your pocket.
Before vs. After: What Changed for Homeowners
The credit moved from your tax return to your monthly bill
💡 The Key Insight
The tax credit didn't disappear—it moved from your tax return to your electricity bill. Solar companies claim the credit and compete for your business by offering lower rates. For homeowners who couldn't fully use the tax credit anyway (retirees, families with lots of deductions), the new structure may actually deliver more value.
Who Benefits Most from the New Structure?
The old tax credit didn't work for everyone—here's who wins with the new approach
👆 Click each card to expand details
Let's Run the Numbers: A Real Connecticut Example
Side-by-side comparison of buying solar (old way) vs. PPA (new way)
Currently paying $200/month to Eversource (~$2,400/year) • 8 kW system needed
The PPA homeowner saves $29/month from day one with zero upfront cost, zero tax paperwork, and zero maintenance responsibility. And if they didn't have enough tax liability to claim the full credit? The PPA savings are guaranteed regardless of your tax situation.
Want Ownership? There's a Path for That Too
The Prepaid PPA: Get the tax credit benefit AND eventual ownership
What's a Prepaid PPA?
If you like the idea of eventually owning your system but want to benefit from the tax credit (which you can no longer claim directly), the Prepaid PPA offers the best of both worlds. You pay upfront at a discount, enjoy professional maintenance during the critical early years, and take full ownership after the recapture period.
A solar finance company installs solar on your roof and owns it. Because they own it, they claim the 30% tax credit and depreciation benefits.
Instead of monthly payments, you prepay approximately 70% of the system cost upfront—essentially getting a ~30% discount that mirrors the tax credit value. This can be paid with cash or financed.
During the IRS tax credit recapture period (typically 6 years), the company owns, monitors, and maintains the system. Any issues? They handle it—it's their asset.
After 6 years, the system transfers to your ownership at no additional cost. You now own the system outright with 19+ years of useful life remaining. Your asset, your energy, your savings.
🎯 The Bottom Line
Prepaid PPAs give you the effective benefit of a ~30% discount, professional maintenance during the critical early years, and eventual full ownership. It's essentially the best of both worlds—tax credit savings without the tax paperwork, plus a clear path to owning your solar investment.
"They went above and beyond!" — Donald V.
The Elephant in the Room: Connecticut's Rising Rates
Here's what matters more than any tax credit
(CT pays nearly 2x more)
the past decade
since 2022
Key Takeaways for Connecticut Homeowners
The tax credit didn't disappear—it moved.
Solar companies can still claim the 30% credit through at least 2027 and pass the savings to you through lower PPA/lease rates.
If you couldn't use the tax credit anyway, nothing was lost.
Retirees and low-tax-liability households may actually be better off with the new structure—savings are automatic.
Solar leases and PPAs are experiencing a renaissance.
Expect more competitive offerings and financial innovation in 2026 as companies compete for your business.
Prepaid PPAs offer a path to ownership with tax credit benefits.
If you want to own your system eventually, this structure lets you get the discount and take ownership after 6 years.
Rising utility rates are the real driver.
With Connecticut rates among the highest in the nation and climbing, the value proposition remains strong regardless of who claims the tax credit.
Battery storage still works.
The commercial ITC for storage extends through 2032, so backup power through solar PPAs remains economically viable.
At SAVKAT, we're Bristol, Connecticut's local solar experts—and we're financing-agnostic. We don't push one solution because it's easier for us. We help you find the approach that makes the most financial sense for your situation—whether that's a loan, a lease, a PPA, or a prepaid agreement.
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