Your Ultimate Guide To Solar Panel Pricing And Incentives In Connecticut (2023)

The state of Connecticut is chilly but calming. With everything from mountains to yacht-dotted harbors to top-notch universities, the beautiful Constitution State makes a great place for solar power users. In recent years, the state has made huge strides to increase residents’ solar usage. So if you’re thinking about installing solar panels in this state, be sure to read our guide to the solar panel pricing and incentives in Connecticut.

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Benefits of Going Solar

There are many benefits of going solar. Chief among them are the environmental benefits. Avoiding the use of conventional energy cuts down on damaging practices like deforestation and mining and reduces carbon dioxide and other airborne pollutants.

Below, we’ll discuss some of the benefits of going solar that apply to your own household.

1. Lower Utility Bills

Installing solar panels on your home can drastically lower your electric bill. If your home is like most households in the U.S., you probably use electricity to heat in the winter and to cool in the summer. Using solar power for some or all of your electricity needs can keep your utility bills low, even if it doesn’t completely offset the price.

2. Steady Electricity Costs

When considering the solar panel pricing and incentives in Connecticut, don’t forget to think about how quickly the cost of energy has risen over the years. Those living on a tight budget, or planning to live on a fixed income in retirement, can benefit greatly from fixed, predictable energy costs, and solar energy can help with that.

3. Infrequent Maintenance

When it comes to maintenance, solar panels don’t need much more than a rinse-off every now and then. The panels don’t have any moving parts, don’t break easily and are made to withstand harsh weather conditions. Most solar panels installed today can last as long as 30 years.

Solar Power in Connecticut

If you decide to install a solar system on your Connecticut residence, there are several state incentives you can take advantage of, in addition to the large federal credit that you can use at tax time. These incentives are part of the state’s effort to boost solar power usage. With only 194 reported days of sunshine, according to the Sun Power website, Connecticut isn’t exactly the sunniest of states. In fact, all of the New England states are known for having more gray, gloomy days than bright, sunny ones. But that doesn’t mean that solar power can’t be a great option for residents of Connecticut.

In fact, Sun Power says, “The average homeowner in Connecticut saves $15,000 over the 20 years following their solar installation. Solar energy is cheaper to harvest and use than traditional energy sources such as natural gas, making solar panels an investment that pays for itself over time.”

According to the Solar Reviews website, the average cost of solar in Connecticut is $2.86 per watt. That’s lower than the national average of $3.00 per watt.

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Connecticut Solar Panel Costs

According to EnergySage, the average solar panel installation cost in Connecticut is $11,432 to $15,468, and it takes the average Connecticut resident about eight and a half years to pay their solar system off.

Average Connecticut Solar Panel Costs by System Size (Before and After Federal Credit)

Federal Solar Investment Tax Credits

There’s good news for Connecticut residents thinking of installing solar panels: The federal solar tax credit, which provides huge financial relief for owners of solar systems, has been extended to 2024 due to the Covid-19 pandemic. As long as you install your solar panels prior to December 31, 2022, you can write off 26% of the costs you incur when you file your federal taxes.

Let’s assume you paid $20,000 for your solar system: in that case, you’ll qualify for a credit of $5,200 at tax time.

Connecticut Solar Rebates and Tax Credits

In addition to the generous federal solar tax credit, you can also enjoy other solar panel pricing and incentives in Connecticut. We’ll take a look below.

Connecticut Green Bank Solar for All Program

You don’t have to be among the wealthy elite to benefit from solar power in Connecticut. The state offers a power purchase agreement (PPA) to eligible low-income households, which allows them to access solar energy at a reduced rate.

(Video) How To Avoid Solar Panel Scams | Ask This Old House

Connecticut Green Bank Residential Solar Investment Program (RSIP)

This program offers incentives and cash rebates for both owners and lessees of solar power, which is somewhat uncommon (most states only offer these benefits for those who purchase a system, rather than lease it). Under this program, owners of solar systems can enjoy a cost reduction of $0.426 per installed watt based on system size. Those who lease their system can get compensation of $0.30 per kilowatt hour generated.

Connecticut Solar Property Tax Exemption

As part of Connecticut’s commitment to clean energy, the state passes tax breaks to residents willing to switch to solar. The state’s Property Tax Exemption for Renewable Energy Systems prevents you from having to pay sales tax when you purchase your solar system. Additionally, you won’t have to pay property tax on the increased value of your home as a result of the installation of your solar system.

Which Solar System Is Right for Your Home?

From small systems that can power one or two major appliances, to large systems that can power an entire large house, there are several different types of solar systems. Each is powered by photovoltaic components that collect energy. If you’re considering switching to solar energy in Connecticut, you’ll want to consider variables like the size of your roof, how much energy your family typically consumes and your budget to determine the right type of solar system for your home.

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THIS IS AN ADVERTISEMENT AND NOT EDITORIAL CONTENT. Please note that we do receive compensation for any products you buy or sign up to via this advertisement, and that compensation impacts the ranking and placement of any offers listed herein. We do not present information about every offer available. The information and savings numbers depicted above are for demonstration purposes only, and your results may vary.

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How to Choose the Best Connecticut Solar Panel Company

There are many solar panel companies in the state of Connecticut. To find the right one for you, keep the following tips in mind.

  • Check reviews
  • Ask on local sites like Facebook or Yelp
  • Decide whether you want a local company or a national provider
  • Check for certifications and licenses
  • Review financing options

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Frequently Asked Questions (FAQ's)

What is a solar farm?

Simply put, it’s a large area of land dedicated solely to the placement of solar panels in order to generate a large amount of solar power.

(Video) How to test a solar panel.

Will solar panels work in Connecticut?

If you reside in Connecticut, you know how cold and dreary it can be much of the year. So it makes sense that you might be wondering whether an investment in solar panels would pay off. However, according to UnderstandSolar.com, solar panels actually perform even more efficiently in cold weather, as long as the sky isn’t too cloudy. Connecticut is cold much of the year, but it has plenty of chilly, sunny days when your panels could collect solar energy.

(Video) The Solar Tax Credit Explained [2022]

FAQs

Does CT offer solar incentives? ›

Qualified homeowners with home solar could be eligible for a tax credit of up to 30% against the cost of the system. Property tax exemption on the added home value from the Connecticut solar installation. 6.35% home solar system state sales tax exemption.

How much is the tax credit for solar panels in CT? ›

There are quite a few solar incentives available in 2022 in Connecticut. Most notable is the federal tax credit, which will provide a 30% tax credit for your entire system cost if you install solar through 2032.

Can I get free solar panels in CT? ›

The good news is most CT residents qualify for free solar panels through the PPA program. That being said, there are several factors that are cosidered for eligibility including where you live in Connecticut, the type of roof you have and other details.

How much does a solar system cost in CT? ›

Connecticut's average cost of a solar panel installation ranges from $13,345 to $18,055. On a cost per watt ($/W) basis, a solar panel installation in Connecticut ranges in price from $2.67 to $3.61. See how Connecticut compares to solar panel costs across the U.S.

How can I get free solar panels from the government? ›

Can you get free solar panels from the government? Simply put, you cannot get free solar panels from the government. These payment plans are actually solar leases or PPAs, and they're a no-cost upfront option that gives ownership to the solar company or installer.

Is net metering going away in Connecticut? ›

The decision to move away from net metering was made in Public Act 19-35, a law that set December 31, 2021 as the firm end of the net metering program in the state.

How much do solar panels cost for a 1500 square foot house CT? ›

This project's low cost is $5,080 for a 2 kW system using polycrystalline panels installed on a roof.
...
Average Cost of Solar Panels in CT per Square Foot.
House SizeAverage Cost (Installed)
1,000 sq.ft.$5,080 - $26,640
1,500 sq.ft.$6,160 - $30,480
2 more rows
19 Aug 2022

Can you write off solar payments? ›

Solar tax credit amounts

Installing renewable energy equipment in your home can qualify you for a credit of up to 30% of your total cost. The percentage you can claim depends on when you installed the equipment. After 2034 the credit is scheduled to end.

Can I write off my solar bill? ›

Yes. Generally, you can claim a tax credit on the expenses related to the new solar PV system that already came installed on the house for the year in which you moved into the house (assuming the builder did not claim the tax credit)—in other words, you may claim the credit in 2021.

Is installing solar worth it? ›

Although Californians use far less energy than most residents throughout the country, they pay an average of 20.45 per kilowatt-hour, which is significantly more expensive than the average of 13.15 in the US. Given the very high price of power, most Californians will find solar panels well worth the investment.

Do solar panels give you free electricity? ›

Solar photovoltaic (or PV) panels convert the energy in sunlight into electricity, and this is effectively free electricity that can be used in your house (once the cost of installing the panels has been taken into account, of course).

Can I install my own solar panels in CT? ›

Be sure that the company you choose is certified to work in the state of Connecticut. The state requires that all installation be done by a licensed professional. If your solar panels are not installed by a licensed professional, you could become ineligible for the financial incentives offered by the state.

What is the max system size for solar in Connecticut? ›

Connecticut has generous solar power rebates, for up to a 10-kilowatt installation. If you use enough energy to justify a 10-kW system, the state offers $426 back per kW.

How much is a solar system for a 2500 sq ft house? ›

Home. The cost range of installing solar panels for a 2,500 sq. ft. home ranges from $18,000 to $55,000.

Can you get government grant for solar panels? ›

The Renewable Heat Incentive (RHI)

The RHI is a government scheme which, as it says on the tin, promotes the use of renewables. Solar thermal panels are available through this scheme, providing they are Microgeneration Certification Scheme (MCS) certified.

How long does a solar system take to pay for itself? ›

The most common estimate of the average payback period for solar panels is six to ten years. This is a pretty wide range because there are many factors that will influence the number of years it can take to pay off your panels and the monthly savings you can expect.

Is now the time to buy solar panels? ›

Thankfully, the answer is a resounding yes. Solar panels have come on leaps and bounds in the past decade, and are now more effective than ever before. The average solar array will now convert around 17-20% of sunlight it absorbs into electricity – up from 12% a mere 10 years ago, according to BBC News.

How long do solar panels last? ›

Solar panels, also known as photovoltaic or PV panels, are made to last more than 25 years. In fact, many solar panels installed as early as the 1980s are still working at expected capacity. Not only are solar panels remarkably reliable, solar panel longevity has increased dramatically over the last 20 years.

Will net metering 2.0 be grandfathered? ›

Getting a solar system installed now will lock you into NEM 2.0 for 20 years. This grandfather clause protects you from any reduction in benefits announced in NEM 3.0.

Why are CT electric bills so high? ›

Eversource said the reasons include energy costs that continue to rise globally and regional electric supply prices reaching all-time highs this year due to increased global demand for and the high cost of natural gas, world events, extreme weather, and other issues.

What is the best electric supplier in CT? ›

Constellation. Compare Constellation electricity plans in Connecticut and you'll find great fixed price electricity plans. They are an excellent choice for your Connecticut electricity supply, with service for consumers in both United Illuminating and Eversource utility markets.

What are the 2 main disadvantages to solar energy? ›

Solar Cons
  • Standard home solar does not “work” at night.
  • Home solar panels are not attractive.
  • DIY solar installation is difficult (if not impossible) for most homeowners.
  • Not every roof configuration is ideal for maximum solar power generation.
  • Solar manufacturing is not good for the environment.

How much is the solar tax credit for 2022? ›

Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.)

How big of a solar panel do I need for 2000 square foot house? ›

How Many Solar Panels Do I Need for a 2000 Sq Ft Home? On average, a 2000 sq ft home would need a 4kW system which means 10 400-watt panels.

Which state has the best solar incentives? ›

According to our research and analysis, the 10 states with the best solar energy tax incentives include:
  • New York.
  • Rhode Island.
  • Iowa.
  • Connecticut.
  • Maryland.
  • New Mexico.
  • Colorado.
  • Massachusetts.

What happens when you pay off your solar panels? ›

Once you pay off your loan or buy your system outright you will essentially be getting energy for free. When it comes to payment, those who are using solar energy will still get a monthly utility bill. This will show how much energy you produced versus how much energy you used for the month.

Can I write off a new roof for solar? ›

The great news is that even though you can't take the solar tax credit on your new roof, you can take it on all the costs associated with installing a solar system (and integrated energy storage), which can add up to big savings for you.

Do solar panels increase bills? ›

PV solar panels enable you to generate your own free electricity, which is then used to power your household appliances and other electrical devices. This means that you won't need as much electricity from the grid so will save money on your bills, especially if energy prices rise.

Do solar panels on homes make a big difference in energy bills? ›

Financial returns and lower monthly utility bills are major incentives for going solar. The exact savings you will see with solar depends on the following: Electricity consumption. Solar energy system size.

Does solar increase home value? ›

According to Zillow, homes with solar panels sell for approximately 4 percent higher on average than homes without solar energy. That means an added value of about $9,200.

What are 3 cons of using solar panels? ›

We want to discuss a few of the important cons to consider.
  • Solar Panel Installations Can Be Expensive. ...
  • Solar Energy Doesn't Work at Night. ...
  • Solar Energy Storage is Expensive. ...
  • Solar Panels are Difficult to Move Once Installed. ...
  • Some Solar Panels Use Rare Earth Metals.

Why you dont want solar panels? ›

High upfront costs for your solar energy system. This is usually because solar equipment and/or installation costs are expensive where you live. Space restrictions mean that you can't install a solar panel system large enough to deliver adequate electric bill savings.

Is there a downside to having solar? ›

The cons are that it only produces energy when the sun is shining, needs a significant amount of land, and that certain solar technologies require rare materials.

Why are my solar panels not saving me money? ›

Your Home Is Using Too Much Power

If your solar panels are not reducing your bill, it can be because: Your system is generating less electricity than you use. You're using too much electricity at night when panels aren't generating it. Too many appliances or devices are plugged in.

Do solar panels work in winter? ›

Solar panels work through all four seasons of the year, come rain or shine, or even hail or in light snow. But solar panels do generally produce less energy in winter. That's because the days are shorter, so there are fewer hours of daylight and the sun is lower in the sky, on average.

How many hours of sun do solar panels need? ›

Ideally, your solar panels should receive at least four hours of direct sunlight per day.

Can a house run on solar energy alone? ›

Solar panels can power a house up to a certain point but most solar panel systems are still connected to the grid and work in a complementary manner. It's very uncommon to come across off-grid solar systems. With the help of solar power, however, you can become less reliant on the grid and save money.

Can I install as many solar panels as I want? ›

No, there is no limit to the number of solar panels you can have. However, there may be a limit on how much power your system is allowed to generate. Some utility companies limit the amount of electricity that a grid-tied solar system can generate.

Can I have as many solar panels as I want? ›

You can have more than 4kWp.

It's a very common misconception that domestic Solar PV systems are limited to 4kWp. This myth was driven by two factors. Firstly the tariff used to reduce for installations above 4kWp, not so any more, it's the same between 0-10kWp and actually goes up for installations over 10kWp.

Is it worth getting solar panels in CT? ›

In most cases, yes! Connecticut is one of the most beneficial places to go solar in the country because residents have the second-highest energy bills of any state. Many CT homeowners eliminate their electric bills with solar panels, which can save an average of nearly $2,000 per year on electricity.

Can you get solar panels for free CT? ›

The good news is most CT residents qualify for free solar panels through the PPA program. That being said, there are several factors that are cosidered for eligibility including where you live in Connecticut, the type of roof you have and other details.

What is a good size solar system for home? ›

If you're in the market for home solar, then you've probably noticed that most companies will recommend a 5kW inverter and 6.6kW of panels if you have single-phase power.

What size solar system does the average house need? ›

An average homeowner would need about 28 to 34 solar panels to fully offset their electricity usage. The chart below is an estimate of the number of panels you could potentially need based on the size of your home. *Data from the Residential Energy Consumption Survey.

How many solar panels and batteries are needed to power a house? ›

The average American home needs between 16 and 20 solar panels based on the average electricity usage of 893 kilowatt-hours (kWh) per month. Installing that many solar panels would cost between $12,000 and $17,000 after the federal solar tax credit.

What credit score is needed for solar panels? ›

What credit score is needed for a solar loan? Usually, you'll need a minimum score of 600 or 650. However, a credit score isn't the only important number when getting a solar loan: the overall requirements to get approved depend on your lender and other factors, including your existing debt.

Is it worth investing in solar panels? ›

As well as saving you money on your energy bills, solar panels can also earn you cash. And don't worry, panels can still generate some electricity on gloomy days, vital when the weather's as dull as watching paint dry.

What is the Green energy Grant? ›

The Green Homes Grant is a scheme for homeowners and landlords in England to support the installation of energy efficient and low-carbon heating improvements to their homes. This could help save up to £600 a year on energy bills and make homes warmer and more comfortable for the people living in them.

Are there any grants to help pay for solar panels? ›

The Renewable Heat Incentive (RHI)

The RHI is a government scheme which, as it says on the tin, promotes the use of renewables. Solar thermal panels are available through this scheme, providing they are Microgeneration Certification Scheme (MCS) certified.

Does Connecticut have SRECs? ›

Connecticut is interesting in that it doesn't technically have a market for solar renewable energy certificates (SRECs), even though the utilities purchase RECs from customers. This is because of the way the state structured its Renewable Portfolio Standard (RPS) in 1998.

How much do you get back in taxes for solar? ›

Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032.

How much do solar panels cost for a 2000 square foot house? ›

The average cost range for installing solar panels for a 2,000 sq. ft. home is between $15,000 and $40,000. Your costs are determined by how much electricity you use each day.

What states give you free solar panels? ›

Here is a list of states that have solar incentives. Even if your state isn't listed here, you could still be eligible for the 30% Federal Solar Tax Credit.
...
2. What states have solar incentives?
ArizonaNebraska
ArkansasNevada
CaliforniaNew Hampshire
ColoradoNew Jersey
ConnecticutNew Mexico
13 more rows

What are the 2 main disadvantages of solar energy? ›

High initial costs for material and installation and long ROI (however, with the reduction in the cost of solar over the last 10 years, solar is becoming more cost feasible every day) Needs lots of space as efficiency is not 100% yet.

Do solar panels Increase Home Value? ›

According to Zillow, homes with solar panels sell for approximately 4 percent higher on average than homes without solar energy. That means an added value of about $9,200.

What is a solar panel grant? ›

Grants for solar panels are intended to help households save money on their energy bills and become more environmentally friendly by generating renewable energy.

What is the difference between SREC and Rec? ›

A Solar Renewable Energy Certificate, or SREC, is virtually the same as a REC except that SRECs are associated with energy from solar photovoltaic systems. Because they have a separate and higher ACP than regular RECs, SRECs often command a higher market price.

What solar incentives are in the new bill? ›

Those who install a PV system between 2022 and 2032 will receive a 30% tax credit. That will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. If you've already installed a system in 2022, your tax credit has increased from 22% to 30% if you haven't already claimed it.

Do you have to claim SREC on taxes? ›

Yes, Solar Renewable Energy Credits are taxable, on both your federal and state returns. The sales are typically reported on Form 1099-MISC. The form is generally issued to income recipients if at least $600 in income has been received. However, the income must be reported, even if you don't receive the 1099-MISC.

Are solar panels 100% deductible? ›

Solar Panels are qualifying assets under the 50% First Year Allowance. This means that by investing in solar, you will only pay corporation tax on your operating profits minus 50% of the value of your solar investment.

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