Solar Calculator for Connecticut: Costs, Incentives & ROI
Connecticut's residential solar market combines some of the highest electricity rates in the contiguous United States — averaging approximately twenty-one to twenty-three cents per kilowatt-hour — with a supportive policy framework that includes net metering at the full retail rate, a property tax exemption for residential solar installations, a sales tax exemption on solar equipment and installation, and access to low-interest financing through the Connecticut Green Bank's Smart-E Loan program. The state's two investor-owned utilities — Eversource Energy Connecticut, which serves the majority of the state including Hartford, New Haven, and the suburban shoreline, and United Illuminating, an Avangrid subsidiary serving Bridgeport and New Haven — both offer net metering programs governed by the Connecticut Public Utilities Regulatory Authority under Conn. Gen. Stat. § 16-244u. Connecticut's net metering credits excess solar generation at the full retail rate, which at twenty-one to twenty-three cents per kilowatt-hour is among the most financially valuable export compensation in the Northeast outside Massachusetts and New York. The Connecticut Green Bank, a quasi-public state agency and the first green bank established in the United States, administers the Smart-E Loan program, which offers qualifying homeowners low-interest financing for solar installations through a network of participating lenders — reducing the cash requirement for homeowners who prefer not to pay the full installed cost upfront. Connecticut's solar resource, while more modest than Sun Belt states, is comparable to neighboring Massachusetts and Rhode Island, averaging approximately four to five peak sun hours per day across the state's coastal plain and river valleys. The federal Investment Tax Credit of thirty percent is the primary incentive for Connecticut homeowners, combining with full-retail net metering and state tax exemptions to produce payback periods of seven to eleven years for a typical six-kilowatt residential system.
Incentive data updated: May 2026(may be outdated)
Average Solar Cost in Connecticut
Average installed solar costs in Connecticut typically range from $3.00 to $3.40 per watt before incentives, reflecting the state's Northeast labor market — with higher electrician and installer wages relative to Sun Belt states — combined with a competitive multi-installer market in the Hartford, New Haven, and Fairfield County corridors. A standard six-kilowatt residential system costs approximately $18,000 to $20,400 before the federal Investment Tax Credit, above the national average and consistent with New England regional pricing. The thirty-percent federal ITC reduces the net installed cost to roughly $12,600 to $14,280 for a six-kilowatt system. Connecticut's property tax exemption under Conn. Gen. Stat. § 12-81(58) exempts the assessed value attributable to a solar energy system from local real property taxation, which over a twenty-five-year system lifespan may represent meaningful cumulative savings depending on the municipality's mill rate. The sales tax exemption under Conn. Gen. Stat. § 12-412(58) covers solar energy equipment and installation labor, eliminating Connecticut's 6.35 percent sales tax on the full installed cost — saving approximately $1,140 to $1,300 on a typical six-kilowatt system. The Connecticut Green Bank's Smart-E Loan program provides access to below-market-rate financing at terms that can match or improve on conventional home improvement loans, particularly for homeowners whose federal income tax liability is insufficient to fully use the ITC in a single year.
- Avg. installed cost
- $3.20/W
- Typical 6 kW system
- $18,000–$20,400
Top Solar Incentives in Connecticut
Live incentive data not currently available for Connecticut. See the federal incentive guidance via our Solar Tax Credit Calculator.
Electricity Rates in Connecticut
Connecticut consistently ranks among the most expensive electricity markets in the contiguous United States, with residential rates averaging approximately twenty-one to twenty-three cents per kilowatt-hour on a blended basis including supply, distribution, and transmission charges. Eversource Energy Connecticut customers — the majority of households in the state — typically pay rates in this range, with the supply component subject to semi-annual changes based on natural gas commodity prices in New England's constrained pipeline market. United Illuminating customers in the southwestern corner of the state face similar rates. Connecticut's high electricity rates reflect several structural factors: the state's reliance on natural gas for a large share of electricity generation at New England ISO prices, limited pipeline capacity constraining gas imports to the region, high local distribution and transmission infrastructure costs, and the state's Renewable Portfolio Standard obligations. The high rate environment substantially improves the economics of residential solar relative to the national average — each kilowatt-hour of solar self-consumption avoids purchasing at twenty-one to twenty-three cents, producing an effective solar savings rate well above the Sun Belt average. Connecticut's electricity rates have historically been among the most volatile in the eastern US due to natural gas price swings, and the certainty of solar production at a fixed installed cost provides a natural hedge against future rate increases.
Peak Sun Hours in Connecticut
Connecticut's solar resource is moderate by US standards, averaging approximately four to five peak sun hours per day on a south-facing tilted surface across most of the state, consistent with neighboring Massachusetts and Rhode Island and comparable to the Mid-Atlantic coastal plain. The Long Island Sound shoreline and the Thames River valley near New London benefit from slightly clearer skies than the interior Northwest Highlands, where orographic cloud formation can modestly reduce annual production. Hartford, located in the Connecticut River valley, averages approximately 4.3 to 4.8 peak sun hours per day. The southwestern Fairfield County corridor — Greenwich, Stamford, and Bridgeport — receives approximately 4.2 to 4.6 peak sun hours per day, influenced by proximity to the New York metro weather pattern. The northeastern Quiet Corner and the Windham County area averages 4.2 to 4.7 peak sun hours per day, consistent with central New England. Connecticut's relatively modest peak sun hours compared to Sun Belt states are partially offset by lower panel operating temperatures — panels operate more efficiently in cooler New England ambient temperatures than in Arizona or Nevada, reducing the temperature-related production penalty that affects Sun Belt systems. A six-kilowatt system in Hartford typically produces approximately six thousand five hundred to seven thousand five hundred kilowatt-hours per year, which at Connecticut's twenty-one to twenty-three cent retail rate represents fourteen hundred to seventeen hundred dollars of annual bill savings.
Example ROI for a 6 kW System
- Estimated annual savings
- $1,550
- Payback period
- 8.5 years
- 25-year net savings
- $25,000
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in Connecticut
- Bridgeport06601
- New Haven06510
- Hartford06103
- Stamford06901
- Waterbury06701
Common Questions About Solar in Connecticut
What is the Connecticut Green Bank Smart-E Loan?
The Connecticut Green Bank, established in 2011 as the first state green bank in the United States, administers the Smart-E Loan program, which provides qualifying residential homeowners with access to below-market-rate financing for solar installations through a network of participating credit unions and community banks. Smart-E Loan terms typically include interest rates below conventional home improvement loan rates, loan amounts up to forty thousand dollars, and repayment terms of up to twelve years. The program is designed to reduce the upfront cash barrier for Connecticut homeowners who want to install solar but prefer not to pay the full installed cost upfront or cannot fully use the federal Investment Tax Credit in a single tax year. Smart-E Loan eligibility and terms are set by the Connecticut Green Bank and participating lenders and may change annually; homeowners should confirm current program terms directly with the Connecticut Green Bank or an approved participating lender before contracting. The Smart-E Loan can be combined with the federal ITC, property tax exemption, and sales tax exemption to maximize the overall financial benefit of a Connecticut solar installation.
Does Connecticut have net metering for solar?
Yes. Connecticut requires both Eversource Energy Connecticut and United Illuminating to offer net metering to residential solar customers under Conn. Gen. Stat. § 16-244u, administered by the Connecticut Public Utilities Regulatory Authority. Excess solar generation exported to the grid earns a credit at the full retail rate — approximately twenty-one to twenty-three cents per kilowatt-hour — which is among the most financially valuable net metering compensation in the Northeast. Credits accumulate monthly and roll over to subsequent billing periods; at the end of the twelve-month reconciliation cycle, any remaining credit may be paid out or carried forward depending on PURA's applicable rate schedule. Connecticut's full-retail-rate net metering makes the economic case for solar particularly strong relative to states that compensate excess generation at avoided-cost rates — each kilowatt-hour exported earns the same credit as avoiding a kilowatt-hour of grid purchase at the high Connecticut rate.
What tax exemptions are available for solar in Connecticut?
Connecticut offers two significant tax exemptions for residential solar installations. The property tax exemption under Conn. Gen. Stat. § 12-81(58) excludes the assessed value attributable to a qualifying solar energy system from local real property taxation. This exemption applies at the state level and does not require a separate local opt-in — unlike Virginia, where property tax exemption is a local-government option. The cumulative savings over a twenty-five-year system lifespan depend on the municipality's mill rate and the assessed value added by the solar installation, but can be material in high-mill-rate municipalities. The sales tax exemption under Conn. Gen. Stat. § 12-412(58) exempts solar energy equipment and installation labor from Connecticut's 6.35 percent sales tax. For a six-kilowatt system with an installed cost of eighteen thousand dollars, the sales tax exemption saves approximately eleven hundred dollars compared to a taxable purchase — a meaningful upfront reduction. Both exemptions apply automatically to qualifying residential solar installations and do not require a separate application to the Department of Revenue Services or local assessor.
How does Connecticut's solar resource compare to neighboring states?
Connecticut's solar resource is comparable to Massachusetts and Rhode Island — the neighboring New England states — averaging approximately four to five peak sun hours per day across most of the state on a south-facing tilted panel. New York's Hudson Valley and Long Island receive slightly more sun, while Vermont and Maine receive somewhat less. Connecticut's position on the southern coast of New England means it receives more sun than inland New Hampshire or northern Vermont but less than the Delaware or Maryland shores of the Chesapeake. The practical implication is that Connecticut is not a top-tier solar resource state by US standards — Arizona, Nevada, and Hawaii all substantially outperform Connecticut in annual production per installed kilowatt — but Connecticut's high electricity rate of twenty-one to twenty-three cents per kilowatt-hour compensates for the more modest resource by making each kilowatt-hour of solar self-consumption financially valuable. A Connecticut homeowner produces less solar energy per installed kilowatt than an Arizona homeowner, but saves more per kilowatt-hour produced. The net result is that Connecticut payback periods are shorter than those of many states with better sun but lower electricity rates.