The Ultimate Guide to Connecticut Solar Tax Credits & Incentives in 2026
While Connecticut phased out its upfront state rebates (like the old RSIP program), the state replaced it with long-term, high-value compensation structures and sweeping tax exemptions. Combined with federal incentives, going solar in Connecticut is one of the smartest financial moves a homeowner can make.
1. The 30% Federal Investment Tax Credit (ITC)
The bedrock of your savings is the Federal ITC. This program allows you to deduct 30% of your total gross solar and battery system cost directly from your federal income taxes. If your system costs $30,000, you instantly qualify for a $9,000 tax credit. There is no maximum cap, and the credit rolls over if you don't use it all in year one.
2. Residential Renewable Energy Solutions (RRES)
Replacing traditional net metering, the RRES program dictates how Eversource and UI compensate you for the power you produce. Homeowners can choose between a "Buy-All" tariff (where the utility buys 100% of your power at a fixed rate) or a "Netting" tariff (where you use your own power and are compensated for the excess). Both paths provide a highly lucrative, state-guaranteed return on your energy production for 20 years.
3. Energy Storage Solutions (ESS) Program
Connecticut is actively paying homeowners to install batteries. Through the ESS program, Eversource and UI offer substantial upfront rebates to significantly lower the cost of battery systems (like the Tesla Powerwall). In exchange, your battery helps stabilize the grid during peak demand, offering you both financial reward and complete blackout protection.
4. 100% Property and Sales Tax Exemptions
Connecticut fully exempts solar equipment and installation from the state's 6.35% sales tax. Additionally, under state law, the increased equity your solar system adds to your home is 100% exempt from local property tax assessments. You get the higher home resale value without paying higher annual town taxes.
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