Incentives & Policy

Solar Incentives and Rebates in Connecticut (2026): RRES Tariffs, Tax Exemptions and Battery Payments

Solar Incentives and Rebates in Connecticut (2026): RRES Tariffs, Tax Exemptions and Battery Payments

Connecticut's RRES tariff, tax exemptions and Energy Storage Solutions payments are the main solar incentives in 2026. Here is what changed this year.

The main solar incentive in Connecticut is the Residential Renewable Energy Solutions (RRES) program, a 20-year tariff run by Eversource and United Illuminating that pays you for your solar output, plus state sales and property tax exemptions. Battery owners can also earn upfront and yearly payments through the Energy Storage Solutions program. Here is what applies to a home project as of November 2026, and what changed this year.

  • RRES offers a Buy-All tariff that pays $0.3289 per kWh for 20 years for 2026 applications, or a Netting tariff that credits exports at the retail rate.
  • Netting projects that apply in 2026 pay a new Solar Production Charge of $0.0402 per kWh on all solar output, up from $0.005 in 2025.
  • Solar equipment and installation are exempt from Connecticut sales tax, and a qualifying home system is exempt from property tax if you apply with your town assessor.
  • Energy Storage Solutions pays $30 to $130 per kWh upfront for home batteries, plus performance payments over 10 years.
  • The federal 30% residential clean energy credit is not allowed for expenditures made after December 31, 2025, which for solar means systems whose installation was completed after that date.

Connecticut solar incentives at a glance

IncentiveWho it is forValue (as of November 2026)How to get it
RRES Buy-All tariffEversource and UI residential customers$0.3289/kWh for 20 years (2026 applications)Installer applies to your utility
RRES Netting tariffSameExports credited at the retail rate; $0.0402/kWh production chargeInstaller applies to your utility
Income-eligible adderHouseholds under 60% of state median income+$0.055/kWh (Buy-All) or +$0.035/kWh (Netting)Income verification with RRES application
Distressed municipality adderHomes in towns on the state list+$0.0275/kWh (Buy-All) or +$0.0175/kWh (Netting)Applied by location
Energy Storage SolutionsEversource and UI battery owners$30/kWh or $130/kWh upfront, plus $300 to $550 per kW-yearEnroll through your installer
Sales tax exemptionAll buyersNo sales tax on solar systems and installationExemption certificate to the seller
Property tax exemption1 to 4 family homes and farmsSystem value not taxedFile with town assessor by November 1

The RRES program: Connecticut's main solar incentive

RRES launched in January 2022 as a six-year program. It replaced the old net metering program and the Connecticut Green Bank's Residential Solar Investment Program. The Public Utilities Regulatory Authority (PURA) oversees it, and Eversource and UI run it. UI's program FAQ says residential systems must be smaller than 25 kW AC, and your rate is locked in for 20 years once you enroll.

Buy-All vs. Netting

Under Buy-All, your utility buys all the energy and renewable energy certificates your system makes at a fixed rate. For applications submitted in 2026, that rate is $0.3289 per kWh, locked for 20 years. The payment can go to you as a bill credit, or part of it can be paid directly to a third party you name, such as a leasing company.

Under Netting, your solar power first runs your home, and any monthly surplus is credited at your current retail rate. Credits carry forward. The extra REC incentive for netting is $0 in 2026, and new netting customers pay the Solar Production Charge described below.

Your rate is set by the date your installer submits the application, not the approval date. Eversource says applications submitted on or before December 31, 2025, got 2025 rates regardless of approval date. If you are close to a calendar year change, ask your installer which year's rates you will get.

The 2026 Solar Production Charge

This is the biggest change for 2026. Netting projects that apply in 2026 pay a non-bypassable charge of $0.0402 per kWh on their total solar production, shown as a line on the bill for the life of the tariff. In 2025 the charge was $0.005. As an illustration, a system making 600 kWh in a month would owe about $24.12 that month (600 x $0.0402). Include it in any savings estimate. Eversource describes the charge as Netting-only, but a table in UI's 2026 developer update also shows it in the Buy-All column, so confirm the treatment with your utility.

Adders for income-eligible households and distressed towns

Two adders raise RRES payments:

  • Income-eligible adder: For customers whose household income is below 60% of state median income. UI lists the 2026 limit as $47,764 for one person and $91,854 for a household of four. Taking part in a utility hardship program, the low-income discount rate or the income-eligible Home Energy Solutions program can confirm eligibility.
  • Distressed municipality adder: For homes in towns the state Department of Economic and Community Development lists as distressed. North Canaan, Stafford and Willington were added for 2026.

Both adders are smaller for Netting than for Buy-All. Ask your installer to show the math for each option.

Connecticut tax exemptions for solar

Sales tax

Since July 1, 2007, Connecticut has exempted solar electricity generating systems and their installation from sales and use tax. The Department of Revenue Services says the exemption covers items like solar modules, inverters and rechargeable batteries used to store the electricity. It does not cover wiring or fixtures that would exist without the solar system. The buyer gives the seller Form CERT-140. The DRS notice describing the exemption dates from 2007, so check with your installer that your quote shows no sales tax on the system.

Property tax

Under state law (CGS 12-81(57)), a solar system installed on or after October 1, 2007, on a single-family home, a 2 to 4 unit home or a farm is exempt from property tax, as long as its expected yearly output does not exceed the site's load. A state legislative research report says the exemption still applies to leased systems and to systems in state tariff programs. You must apply with your town assessor by November 1, or you lose the exemption for that assessment year. Once approved, you do not need to renew it unless the system is changed in a way that needs a building permit.

Battery incentives: Energy Storage Solutions

Energy Storage Solutions pays Eversource and UI customers to install batteries and let the utility draw on them during peak grid stress. The Connecticut Green Bank says new rules took effect April 1, 2026:

  • Upfront payment of $130 per kWh for "grid edge" residential customers and $30 per kWh for other homes. EnergySage describes grid edge customers as those with frequent or long-lasting outages; ask your installer whether your address qualifies.
  • Performance payments of $300 to $550 per kW-year over 10 years, with higher rates for underserved and low-income customers.

The Green Bank says summer dispatch events are expected to stay at 30 to 60 per season, with up to 10 in winter. Make sure you understand how often the utility can use your battery before you sign.

Federal credit status and financing

According to the IRS, no residential clean energy credit can be claimed for expenditures made after December 31, 2025. Its August 2025 guidance adds that a solar expenditure counts as made when installation is complete. A Connecticut system finished in 2026 should not be priced as if 30% will come back at tax time. Our guide on whether there is still a federal solar tax credit explains the change.

For financing, the Connecticut Green Bank's Smart-E Loan offers up to $50,000 over 5 to 15 years. EnergySage listed rates of 6.99% to 7.99% APR as of October 1, 2026; check current rates with the lender.

Is RRES ending? What to know before you sign

RRES began as a six-year program, and PURA has been studying what comes next. A draft report PURA released on January 21, 2026, proposed a single eight-year successor program running from 2028 to 2035, after the current tariff programs expire. A final report was expected later that winter; we could not confirm its final terms, so treat the details as a proposal. Rules could change for later applicants, but UI's program FAQ says an enrolled customer's rate is locked in for 20 years. If you are weighing solar now, compare the current rates with what you know, not with a future program that does not exist yet. Our companion guide on how solar credits work in Connecticut covers the billing side in more detail.

Under Netting, each credit is worth your retail rate, so the price you pay for power drives payback. See current figures on our Connecticut electricity rates page and typical system output on our Connecticut solar panels page.

Next steps

Ask each installer to model both Buy-All and Netting with the 2026 production charge included, and confirm whether you qualify for an adder. Then run the offers through our solar quote checker before you sign.

Frequently asked questions

What is the RRES program in Connecticut?

Residential Renewable Energy Solutions is the tariff program run by Eversource and United Illuminating that replaced net metering and the Green Bank's RSIP incentive in January 2022. Homeowners choose Buy-All or Netting, and the rate is locked in for 20 years.

How much does Buy-All pay in Connecticut in 2026?

For applications submitted in 2026, Buy-All pays $0.3289 per kWh, fixed for 20 years. Income-eligible households and homes in distressed towns can earn adders on top.

What is the Solar Production Charge in Connecticut?

It is a charge on every kWh your system produces. For Netting applications submitted in 2026 it is $0.0402 per kWh, up from $0.005 in 2025, and it lasts for the tariff term.

Are solar panels exempt from sales tax in Connecticut?

Yes. Solar electricity generating systems and their installation have been exempt from Connecticut sales and use tax since July 1, 2007.

Do I need to apply for the Connecticut solar property tax exemption?

Yes. File with your town assessor by November 1. Once approved, you do not need to reapply unless the system is changed in a way that needs a building permit.

Can I still get the federal solar tax credit in Connecticut?

No, not for a new home system. The IRS says the residential clean energy credit is not allowed for expenditures made after December 31, 2025, and a solar expenditure counts as made when installation is complete.

Sources

Connecticut at a glance

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