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)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneConnecticut's residential solar tax credit expired in 2022.
SREC Market
Not AvailableConnecticut 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
AvailableConnecticut 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
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
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
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