Federal Solar Investment Tax Credit (30%) Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

ConnectedSolutions Program The ConnectedSolutions Program, available to Eversource customers, is a demand response program that pays an annual incentive to allow the utility company to access and use electricity you store in your battery during peak energy demand.  

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. Connecticut’s Residential Renewable Energy Solutions offers residential solar installations installed after January 1, 2022, the opportunity to sell the energy and renewable energy certificates (RECs) at a fixed 20-year price by selecting one of two incentive rate structures: 1) Buy-all or 2) Netting. Any net excess generation (NEG) during a monthly billing period is carried over to the following month as a kilowatt-hour (kWh) credit for one year. At the end of the year (March 31), the utility pays the customer for any remaining NEG at the “avoided cost of wholesale power.”

Connecticut Property Tax Exclusion Adding a solar energy system to your home will not increase your property taxes.

Connecticut Sales Tax Exemption In Connecticut, no sales tax will be added to the purchase of your solar system.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.