Poor Viability

Is Solar Worth It in Connecticut in 2026?

Complete analysis of solar costs, incentives, net metering, and payback for Connecticut homeowners — without the federal ITC.

Cost Per Watt

$3.60

installed

Electricity Rate

$0.156

per kWh

Payback (No ITC)

18.7 yr

current reality

Payback (With 30% ITC)

13.1 yr

hypothetical

25-Year ROI

34%

return on investment

Incentive Breakdown — Connecticut

Available incentives for a typical 7kW residential solar system in Connecticut

Federal ITC (25D)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Connecticut's residential solar tax credit expired in 2022.

SREC Market

Not Available

Connecticut transitioned from SREC to the Residential Solar Investment Program (RSIP) with upfront or production-based incentives.

Property Tax Exemption

Solar system value excluded from property tax assessment

Sales Tax Exemption

Solar equipment exempt from state sales tax

Low-Income Program

Available

Connecticut offers programs to help low-income households access solar energy.

Key Incentives: Property tax exemption for solar; Sales tax exemption on solar equipment; Utility rebate of $1,750; Low-income solar program available.

Solar Math — With vs Without Federal ITC

Cost breakdown for a typical 7kW residential system in Connecticut

2026 Reality (No Federal ITC)

System Size
7 kW
Cost per Watt
$3.60/W
Gross Cost
$25,200
Federal ITC
$0
Net Cost
$25,200
Annual Savings
$1,350/yr
Payback Period
18.7 years

Hypothetical (With 30% ITC)

System Size
7 kW
Cost per Watt
$3.60/W
Gross Cost
$25,200
Federal ITC (30%)
-$7,560
Net Cost
$17,640
Annual Savings
$1,350/yr
Payback Period
13.1 years

Impact: Without the federal ITC, Connecticut homeowners face a 5.6-year longer payback period — paying $7,560 more out of pocket.

Net Metering Policy — Connecticut

How Connecticut compensates your excess solar production

NEM 1.0 Full Retail Net Metering

Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.

Connecticut offers full retail net metering for residential systems up to 20 kW under PURA rules.

Cost Per Watt Benchmark — Connecticut

Connecticut Average

$3.60/W

National Average

$3.05/W

Typical 7kW System

$25,200

$2.00/W $3.50/W $5.00/W

Connecticut's average installed cost is above the national average of $3.05/W

Breakeven Timeline

Without the federal ITC, a typical 7kW system in Connecticut breaks even in 18.7 years. With the former 30% ITC, payback would drop to 13.1 years.

Without Federal ITC

18.7

years to break even

With Former 30% ITC

13.1

years to break even

Production Details

Peak Sun Hours4.4 hrs/day
Production1237 kWh/kW/yr
Annual Production$8,656 kWh
Annual Savings$1,350

Ready to Go Solar in Connecticut?

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