Right now, Connecticut is one of the best states for solar.
With a bunch of great incentives, a significant drop in pricing on solar panels over the last 5 – 10 years, and some of the highest electricity rates in the country (which are expected to go up over 20% in 2022), solar savings can be huge for many CT residents.
And that doesn’t even take into account the increase in home value, the environmental benefits of solar and, when you combine solar with battery storage, the ability to be energy independent.
Solar Panels CT: A Guide For Homeowners
But solar – the options, costs, incentives and more – can be overwhelming and confusing.
Below you’ll get a clear overview (in plain English!) of the current solar landscape in the Constitution State. Plus, you’ll find a resource that can help you get a free, personalized estimate of what getting solar for your home can save you.
How Much Do Solar Panels Cost in CT?
The estimates you’ll find online of how much solar costs in CT vary widely. And that’s because there are a lot of factors that determine the true cost of installing solar on your home.
How many panels you need, your energy usage, the type of panels you get, the solar installers you use, the angle of your roof, the incentives you are eligible for and more, all factor into how much solar will cost you. And, more importantly, how much you’ll save.
That said, the current average total cost for a solar panel installation in Connecticut is around $13,500. If you’re looking for a per watt cost, that average is around $2.70/W.
But your numbers may be very different. The only way to get an accurate estimate of your cost and savings is to have a trusted, local solar installation company assess your situation and give you some numbers. Better yet, get quotes from a few installers as pricing can differ quite a bit between them.
CT Solar Incentives
There are a lot of great solar incentives available to CT homeowners. It’s one of the big reasons that installing solar makes sense for many Connecticut residents. Here’s a rundown of the Connecticut solar incentives:
Energy Conservation Loan
These are low-interest loans available for solar projects. For those eligible, you can borrow up to $25,000. These are typically 10-year loans with interest rates ranging from 0% to 6.99%.
Net metering is one of the best ways to have solar pay for itself sooner rather than later. While it’s not available in every state, it’s available in Connecticut (at least for now).
The way net metering works is that if your solar panels produce more electricity than you use, you can sell that excess electricity back to the power company. It’s a great deal for solar owners and, if you go solar now in CT, you can have net metering locked in until 2041!
Sales Tax Exemptions on Solar
When you buy most things in CT, you have to pay a 6.35% sales tax. But that’s not the case with solar panels because the state has made them exempt from sales tax.
Property Tax Exemptions
One big benefit of solar panels is that they will increase the value of your home. Not only that, but when you go to sell, homes with solar tend to sell faster.
In Connecticut, there is a property tax exemption for solar panels. That means however much your home’s value goes up due to solar, you will not owe property taxes on that increase.
This program is available to Eversource customers who get battery storage with their solar system.
The way it works is you get a cash incentive to let your utility company get access to and use electricity stored in your battery during peak energy events. The amount you get depends on the season. In the summer, you’ll get $225 per kW. In the winter, it drops to $50 per KW.
There are limits on how many times they can draw on power from your battery. According to Eversource, “A typical home battery could contribute an average of 5kW per event. This would earn $1,125 for the summer season and $250 for the winter season.”
Additionally, they say, “This means, for a standard solar battery, you will receive incentive payments of between $4,000 and $9,000 over the five-year life of the program.”
It’s definitely worth checking out and can help you pay for your battery storage a lot faster.
Solar For All Program
This program helps low- and moderate-income homeowners go solar. Basically, it’s a lease program with no upfront costs for those who take advantage of it. The program “guarantees customer savings without hidden fees or escalating lease payments.”
Solar Leasing in CT
The state of Connecticut offers incentives to third-party installation companies that install and maintain solar on homes and then lease those systems to the homeowners. This makes CT one of the best states in the US to lease solar.
CT Solar Rebates
Connecticut also has a solar rebate program currently available for residents. This rebate will give you $0.358 per watt of solar installed for up to 10kW of panels. For an average-sized installation of 5kW, that adds up to a rebate of $1,790.
But you better act fast to get in on this one. This program is due to sunset at the end of 2022, if not before.
Federal Solar Credit For Connecticut Homeowners
All homeowners in CT can take advantage of the federal tax credit for solar installations. If you install panels, you’ll get a 30% tax credit on your federal taxes. That is 30% off the entire cost of your solar project. This includes panels, labor, batteries and anything else that goes into it.
If your solar project costs $15,000, then your tax credit would be $4,500. And it’s a dollar-for-dollar credit which means if you were to owe $5,000 in taxes, after the credit, you would only owe $500.
Is Solar Worth It In CT?
Ultimately all this comes down to “is solar worth it?” if you live in Connecticut. When you factor in…
- The very high (and going higher) electricity rates in the state
- All the currently available state incentives
- The 30% federal tax credit
- Low solar panel prices that have dropped almost 50% over the past 5 years
… the answer for many CT residents is definitely YES!
In fact, estimates show that the average homeowner in CT can pay for their solar panels through electric bill savings in anywhere from 6 – 9 years. And, over 20 years, you can save somewhere between $30,000 to $57,000 by switching to solar!
So just financially, investing in solar makes a lot of sense for many CT homeowners. And that doesn’t even factor in the increased value of your home, the ability to be energy independent (if you add batteries to your system) and the environmental benefits of solar.
But solar doesn’t make sense for everyone. How much electricity you use, the amount of sunlight your roof gets, how many panels you can fit on your roof, and other things will affect how much you can save with solar.
The only way to get a good understanding of what your true actual upfront costs will be, what incentives you qualify for, if you can get a $0 down deal, what financing options you have and more is to get estimates from trusted, local installers.
We recommend you get one of those estimates through the good people at UnderstandSolar. They’ve been around since 2014 and have helped over 400,000 people go solar. They are the #1 Solar Advisor in the US and help people understand their options and find exclusive deals on solar. They have partnerships with the largest and most trustworthy solar installers in NJ.
You can get a solar savings estimate from them in less than a minute. Just enter your zip code below to get started, then complete the form on the UnderstandSolar site to get your savings estimate.
Why NOW Is The Time To Find Out If Solar Makes Sense For You
If you even think solar may be worth it for you, now is the time to act because it looks like those who don’t will miss out on a golden opportunity to save. This is for a few reasons, including:
- While solar panel prices have dropped quite a bit in recent years, costs look like they may be going back up. Because of material shortages, tariffs on imported panels and supply chain issues, many expect prices to rise quite a bit soon.
- The 26% Federal solar tax rebate drops to 22% in 2023 and goes away completely in 2024 so the time to take advantage of the thousands in savings thanks to Uncle Sam is drawing to a close soon (This is no longer the case with the August 2022 passage of the Inflation Reduction Act which increased the federal tax credit and extended it for 10 years.)
- More extreme weather coupled with power grid problems has led to more frequent and prolonged power outages all over the US. This is increasing demand for solar and batteries and wait times for installation are increasing.
- The longer you hold off, the more you miss out on saving money on your monthly electric bill.
- Some of the best solar incentives available in Connecticut may be sunsetting soon, so get them while you still can!
To make sure you don’t miss out on the current low costs and incentives, it’s worth at least getting an estimate or two now. Have an expert assess your situation, run the numbers for you and see how much you can save.
With the potential to save $30,000 – $57,000, it’s at least worth getting an estimate!
To get started, just enter your zip code below and fill out the form on UnderstandSolar’s site to get an accurate savings estimate from a trustworthy local CT solar installer.
You may decide that solar doesn’t make sense to you after getting the numbers. But at least you’ll do so knowing you’ve made an informed decision.
Get started here to see exclusive solar deals in your area and find out if solar makes sense for your home.