As of August 2026, Connecticut solar incentives are a stack, not one rebate: the RRES tariff pays for your production, solar equipment is exempt from the 6.35% sales tax and from property tax, the CT Green Bank Smart-E loan finances the system, and the Energy Storage Solutions program helps pay for a battery. The 30% federal 25D homeowner credit ended December 31, 2025.
- Production payments: the Residential Renewable Energy Solutions (RRES) tariff pays you for what your system generates through Eversource or United Illuminating, so read our Connecticut net metering guide for the Netting-vs-Buy-All mechanics (CT PURA).
- Financing: the CT Green Bank Smart-E loan offers low-interest financing for solar and battery storage through participating local lenders (CT Green Bank; DSIRE). Confirm the current rate before you sign.
- Batteries: the Energy Storage Solutions program provides an upfront incentive for home batteries, documented at around $200 per kWh of capacity up to roughly $7,500 per residential project, plus performance payments, through your utility under PURA (DSIRE; CT PURA). Confirm current terms.
- Tax breaks: solar equipment is exempt from the 6.35% state sales tax and the added home value is exempt from property tax (DSIRE).
- No state income-tax credit: Connecticut has never offered a state solar income-tax credit, so the tax benefit is the two exemptions, not a check.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
Connecticut solar incentives work as a stack, not a single rebate. There is no state cash rebate and no state income-tax credit here, so the value comes from four pieces working together: a 20-year production tariff, low-interest financing, a battery incentive, and two tax exemptions, all riding on top of some of the highest electricity rates in the country at about 30.47 cents per kWh (EIA retail sales, residential CT, as of March 2026). This page walks through each incentive, who receives it, and the catch worth knowing, then points you to the RRES mechanics and your local numbers. For the full state overview and payback math, start with our Connecticut solar hub.
The Connecticut solar incentive stack in 2026
Here is every incentive a 2026 Connecticut homeowner can actually use, what each one does, and its current status. The RRES tariff is the production engine; the rest lower your cost of getting there.
| Incentive | What it does | 2026 status | Who receives it | Source |
|---|---|---|---|---|
| RRES tariff (Netting or Buy-All) | Pays you for the power your system makes for 20 years | Active through Eversource and United Illuminating | The system owner of record | CT PURA |
| CT Green Bank Smart-E loan | Low-interest financing for solar and storage | Active in 2026; confirm current rate and lender | The owner-occupant borrower | CT Green Bank |
| Energy Storage Solutions | Upfront plus performance payments for a home battery | Active; upfront documented near $200/kWh, up to about $7,500 residential; confirm current terms | The battery owner | DSIRE |
| Sales-tax exemption | Waives state sales tax on equipment | 100% of the 6.35% rate (CGS 12-412(117)) | The buyer | DSIRE |
| Property-tax exemption | Excludes solar’s added value from assessment | 100% for qualifying residential systems (CGS 12-81(57)) | The owner | DSIRE |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025 | No 2026 homeowner-buyer | IRS |
Program terms and rates change. RRES tariff levels, the Smart-E rate, and the Energy Storage Solutions incentive should be confirmed with each source before you decide.
According to MySolarFY’s analysis (as of August 2026), Connecticut’s 6.35% sales-tax exemption alone saves roughly $1,450 to $1,690 up front on a typical $22,800 to $26,600 cash system ($3.00 to $3.50 per watt on a 7.6 kW roof). Add a home battery and the Energy Storage Solutions upfront incentive can knock a documented ~$200 per kWh off its cost, up to about $7,500. These are MySolarFY estimates built from the verified 6.35% rate and published program figures, not a quote.
Now here is how each piece of the stack actually works.
Financing: the CT Green Bank Smart-E loan
The Smart-E loan is Connecticut’s signature clean-energy financing. It is a low-interest, unsecured loan for solar and battery storage. The Connecticut Green Bank, a quasi-public agency, partners with local banks and credit unions to offer it (CT Green Bank; DSIRE). Because the loan is in your name, you stay the system owner of record, which means you keep the RRES tariff and both tax exemptions. Rates and terms are set by the participating lender and change over time, so confirm the current offer before you sign. If you would rather pay nothing at installation, a lease or PPA is a different path with different tradeoffs, covered in our guide to no upfront cost solar in Connecticut.
Batteries: the Energy Storage Solutions program
Connecticut pays homeowners to add a home battery. The Energy Storage Solutions program gives an upfront incentive documented at around $200 per kWh of capacity, up to roughly $7,500 per residential project, plus ongoing performance payments (DSIRE). It is run by the Public Utilities Regulatory Authority and delivered through Eversource and United Illuminating, and the performance payments reward a battery the grid can lean on during peak demand (CT PURA). The exact 2026 incentive level and cap can step down over the program’s phases, so confirm your current numbers with the administrator before you commit. A battery is optional for a Connecticut solar project, but the incentive plus backup power during outages makes it worth pricing.
Tax exemptions: sales and property
Connecticut waives two taxes on residential solar. Qualifying solar equipment is exempt from the state’s 6.35% sales tax (CGS 12-412(117)), and the value solar adds to your home is exempt from property tax, so a system does not raise your assessment (CGS 12-81(57); DSIRE). These are automatic for qualifying residential systems, not something you apply for like a rebate. What Connecticut does not have is a state solar income-tax credit, so do not expect a line on your state return. The sales-tax exemption is real money at checkout, and the property-tax exemption protects you from a higher bill later. A 2025 to 2026 state capacity-tax change applies to large utility-scale solar, not residential rooftops, so it does not touch a typical home system.
Production payments: how RRES fits the stack
The RRES tariff turns your production into money. Connecticut replaced classic net metering with the Residential Renewable Energy Solutions program on January 1, 2022. New systems now enroll in an RRES tariff, either Netting or Buy-All, through Eversource or United Illuminating for a 20-year term (CT PURA). The tariff mechanics, the 2026 Solar Energy Adjustment on Netting, and the fixed Buy-All rate are their own decision, so we keep the full side-by-side on the dedicated page rather than repeat it here. For how the two tariffs pay and which one fits your usage, read how Connecticut net metering works in 2026, and for the general idea of export credits, see how net metering credits your solar exports.
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The federal picture: 25D ended, what remains
The federal homeowner credit is gone; the Connecticut stack is not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS OBBB FAQ; SEIA). Under the One Big Beautiful Bill Act, a Connecticut homeowner who buys solar with cash or a loan in 2026 cannot claim it. The RRES tariff, the Smart-E loan, the Energy Storage Solutions incentive, and the two tax exemptions were not affected. One federal credit does survive, but it is not yours to claim: Section 48E is a commercial credit claimed by the business that owns a leased or PPA system, not by the homeowner (IRS Clean Electricity Investment Credit). For the full federal timeline, see what the federal solar tax credit change means in 2026.
How you pay decides which incentives you keep
The way you finance solar sets who is the system owner of record, and that decides who holds the RRES tariff and the tax exemptions.
| How you pay | Up-front cost | Who owns the system | RRES tariff and exemptions |
|---|---|---|---|
| Cash | Full system price | You | Yours, in your name |
| Smart-E or other solar loan | Little or none, financed over time | You | Yours, in your name |
| Lease or PPA | $0-up-front where you qualify | A third-party company | The company holds the tariff; you get a lower or fixed rate |
If you own the system (cash or a Smart-E loan), the RRES tariff is in your name and you keep the sales-tax and property-tax exemptions. If you lease or sign a PPA, the company that owns the panels holds the tariff, and your benefit is a lower or fixed power price with no up-front cost. Neither path gives a 2026 Connecticut homeowner the federal residential credit, since 25D ended after December 31, 2025. Ask a tax professional about your own situation; MySolarFY does not provide tax advice.
Connecticut solar incentives by city and utility
Connecticut sits in our national Solar by State guide. To see how your utility credits solar and what you pay per kWh, read our net metering guides for Eversource Connecticut and United Illuminating, and our Connecticut electricity rates guide.
Exploring a specific market? See our local solar guides for Bridgeport, Hartford, New Haven, Stamford, and Waterbury.
Frequently asked questions
What solar incentives does Connecticut offer in 2026?
Connecticut solar incentives are a stack: the Residential Renewable Energy Solutions (RRES) tariff pays you for your production for 20 years through Eversource or United Illuminating, the CT Green Bank Smart-E loan offers low-interest financing, the Energy Storage Solutions program pays an upfront incentive for a home battery, and solar equipment is exempt from the 6.35% state sales tax and from property tax (CT PURA; DSIRE). Connecticut has no state solar income-tax credit, and the 30% federal 25D credit ended after December 31, 2025.
Does Connecticut have a state solar tax credit or rebate?
No. Connecticut does not offer a state solar income-tax credit or a direct state cash rebate for rooftop solar. Its tax benefits are the two exemptions instead: your solar equipment is exempt from the 6.35% state sales tax, and the added home value is exempt from property tax (DSIRE). The production side is handled through the RRES tariff, and financing through the CT Green Bank Smart-E loan, so the value is spread across those pieces rather than a single check.
How much does the Connecticut battery incentive pay?
The Energy Storage Solutions program provides an upfront incentive plus performance payments for a home battery, administered through Eversource and United Illuminating under PURA. Published figures document the residential upfront incentive at around $200 per kWh of capacity, up to roughly $7,500 per project, with performance payments that depend on how often the grid calls on your battery (DSIRE; CT PURA). The exact incentive level and cap can step down over the program’s phases, so confirm current terms with the administrator.
What is the CT Green Bank Smart-E loan?
The Smart-E loan is a low-interest, unsecured loan for solar and home energy upgrades, including battery storage, offered by the Connecticut Green Bank through participating local banks and credit unions (CT Green Bank). Because the loan is in your name, you remain the system owner of record, so you keep the RRES tariff and the tax exemptions. Rates and terms are set by the lender and change over time, so confirm the current offer before you borrow.
Did the federal solar tax credit end, and does it affect Connecticut?
Yes. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Connecticut homeowner who buys solar in 2026 with cash or a loan cannot claim it. Connecticut’s own incentives, the RRES tariff, the Smart-E loan, the Energy Storage Solutions battery incentive, and the sales and property tax exemptions, were not affected. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner.
Do I still qualify for Connecticut solar incentives if I lease or sign a PPA?
The RRES tariff and the tax exemptions follow ownership, so if you lease or sign a PPA, the third-party company that owns the panels holds the tariff and the equipment, and your benefit is a lower or fixed power price with no up-front cost. The CT Green Bank Smart-E loan is for owner-occupants who finance a system they own. If you want the RRES tariff, the Energy Storage Solutions incentive, and the exemptions in your own name, owning the system through cash or a loan is the path that captures them.
Reviewed by the MySolarFY editorial team. Figures were verified against the linked Connecticut sources (CT PURA RRES and Energy Storage Solutions, CT Green Bank), DSIRE, EIA, and IRS as of August 2026, and the savings estimates follow our data and methodology; RRES tariff rates, the Smart-E rate, and the Energy Storage Solutions incentive change, so confirm current terms with each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.