Connecticut has some of the highest electricity rates in the continental United States — Eversource and United Illuminating customers paid an average of $0.28–$0.35/kWh in 2025. High rates are solar's best friend, which is why Connecticut homeowners with good roofs can achieve payback periods that would be impossible in low-rate states like Louisiana or Oklahoma. The state's Residential Solar Investment Program (RSIP) provides an additional production incentive, though waitlist periods have been an issue.
Disclaimer: All cost and savings estimates are based on NREL PVWatts data, Lawrence Berkeley National Laboratory installer pricing surveys, and Connecticut Public Utilities Regulatory Authority net metering rules. The federal Section 25D solar tax credit expired December 31, 2025 — it is not included in any calculation on this page. Connecticut RSIP waitlists and incentive rates change frequently — verify current program status with your installer and the Connecticut Green Bank before purchasing. Get at least three installer quotes.
Key Takeaways
- Connecticut electricity averages $0.28–$0.35/kWh (Eversource/UI 2025) — among the highest in the continental U.S., making solar high-value
- The Residential Solar Investment Program (RSIP) offers $0.03–$0.05/kWh in production-based incentives — but waitlists have been a recurring issue
- A 9 kW system costs $22,500–$31,500 installed; no federal credit applies in 2026
- Typical 25-year savings: $22,000–$32,000; payback runs 11–15 years depending on utility and RSIP availability
What Our Calculator Shows for Connecticut (9 kW System)
Connecticut's high electricity rates make solar more valuable per kWh than most states, but the moderate sun hours (4.2/day) and high installed costs temper the ROI compared to Sun Belt markets.
| Parameter | Eversource CT (Hartford/New Haven) | United Illuminating (Bridgeport/New Haven) |
|---|---|---|
| System size | 9 kW | 9 kW |
| Peak sun hours (NREL) | 4.2 hrs/day | 4.3 hrs/day |
| Annual production (est.) | 11,230 kWh | 11,500 kWh |
| Installed cost (2026) | $22,500–$31,500 | $22,500–$31,500 |
| Federal credit (Section 25D) | Expired — $0 | Expired — $0 |
| RSIP production incentive (if available) | $0.03–$0.05/kWh × 10 yrs | $0.03–$0.05/kWh × 10 yrs |
| RSIP 10-year total value (est.) | $3,360–$5,600 | $3,450–$5,750 |
| Net cost (with RSIP, NPV) | $20,000–$29,000 | $20,000–$29,000 |
| Net cost (without RSIP) | $22,500–$31,500 | $22,500–$31,500 |
| Monthly bill offset | $200–$280/mo | $210–$290/mo |
| Estimated payback (with RSIP) | 11–14 years | 10–13 years |
| Estimated payback (without RSIP) | 13–16 years | 12–15 years |
| 25-year total savings | $24,000–$33,000 | $25,000–$34,000 |
Assumptions: $275/month electricity bill; south-facing roof at 35° tilt; net metering at $0.03–$0.05/kWh export rate (below retail, per Eversource/UI tariffs); 0.5%/year panel degradation; 3% annual electricity rate escalation. Run the Solar ROI Calculator for your specific inputs.
Connecticut's Residential Solar Investment Program (RSIP)
The RSIP is administered by the Connecticut Green Bank and represents the primary state solar incentive for residential customers. Unlike a tax credit or upfront rebate, RSIP pays a per-kWh production incentive over a 10-year performance period.
How RSIP works:
- Eligible systems receive a payment of $0.03–$0.05/kWh for every kWh the system produces for 10 years
- Payments are made quarterly or annually by the Connecticut Green Bank
- The incentive is based on actual metered production — not projected production
- Systems must be installed by an RSIP-approved contractor
For a 9 kW system producing 11,230 kWh/year at $0.04/kWh, the annual RSIP payment is approximately $449, totaling roughly $4,490 over 10 years. This is meaningful — but it's spread over a decade, which reduces present value compared to an upfront credit.
According to the Connecticut Green Bank's RSIP program page, RSIP incentive rates and waitlist status change frequently based on available funding. The program has experienced waitlist periods where new applications were not accepted. Check current program status before relying on RSIP in your payback calculation.
Key limitation: If the program is waitlisted when you install, you may not receive any RSIP incentive. Model your payback both with and without RSIP to understand the downside scenario.
Connecticut Net Metering and Export Rates
Connecticut's net metering structure in 2026 is less favorable than full retail-rate net metering but better than states with pure avoided-cost export compensation.
Eversource Connecticut and United Illuminating offer residential solar customers compensation for surplus generation, but the export rate is set below the full retail rate — typically $0.03–$0.05/kWh based on the avoided cost rate. This is meaningfully below the $0.28–$0.35/kWh retail rate customers pay for grid electricity.
According to the Connecticut Public Utilities Regulatory Authority (PURA), the net metering policy has evolved toward "Virtual Net Metering" and production-incentive structures. The fundamental implication is the same as California NEM 3.0: self-consuming solar is worth far more than exporting it.
The self-consumption math for Connecticut:
- Self-consumed solar: avoided cost of $0.30/kWh (Eversource typical)
- Exported surplus: credit of ~$0.04/kWh
- Value ratio: self-consumption is 7.5× more valuable than export
For Connecticut homeowners, this creates a strong incentive to right-size your solar system to match your consumption — oversizing to maximize exports generates very little value. Alternatively, adding battery storage (and the associated 30% ITC) converts export-destined energy into valuable self-consumption.
Connecticut Electricity Rates: The Solar Tailwind
Connecticut's electricity rates are consistently among the highest in the continental U.S., and they've been rising. According to EIA's Electric Power Monthly, Connecticut residential rates averaged approximately $0.28–$0.35/kWh in 2025 — more than double the national average of around $0.17/kWh.
High rates are the most powerful driver of solar ROI. At $0.30/kWh, every kilowatt-hour a Connecticut homeowner self-generates and self-consumes avoids spending $0.30 on grid electricity. At the national average rate ($0.17/kWh), that same kWh saves only $0.17.
The compounding effect over 25 years is substantial. With electricity rates projected to continue rising (EIA has tracked consistent year-over-year increases in New England), Connecticut solar systems installed in 2026 may be worth considerably more by 2035–2040 as the avoided-cost value of each kWh increases.
According to Lawrence Berkeley National Laboratory's Tracking the Sun, Connecticut has one of the higher solar installation penetration rates in the Northeast, driven by high rates and relatively favorable policy history.
Connecticut Property Tax and Sales Tax Exemptions
Connecticut offers solar-friendly tax treatment that reduces the effective cost of installation:
Property tax exemption: Connecticut General Statutes §12-81 exempts solar energy systems from local property tax assessment. A 9 kW system that adds $20,000–$30,000 to assessed value would otherwise add $400–$800/year in property taxes in Connecticut's higher-mill-rate municipalities (Greenwich, Stamford, and smaller towns have quite different effective rates). The exemption saves this amount annually.
Sales tax exemption: Connecticut exempts solar electricity generation equipment from the 6.35% state sales tax. On $25,000 of equipment, that's a $1,588 savings — not usually itemized separately on a quote but should reduce your price when properly applied.
These two exemptions together can meaningfully reduce the effective 25-year cost of a Connecticut solar installation. They don't show up as line items in a payback calculator, but they're real money.
When Connecticut Solar Makes Financial Sense
Strong case for solar:
- Eversource or UI customer with rates at $0.28+/kWh — high rates make every kWh highly valuable
- South-facing roof with minimal shading — Connecticut winters have low sun angles; shading impact is severe
- Monthly electricity bill $250+/month — larger bills yield larger absolute savings
- You can access RSIP incentive (program not waitlisted) — $4,000–$5,500 in 10-year production payments meaningfully improves payback
- Comfortable with 11–15 year payback and planning to own the home 15+ years
Weaker case for solar:
- RSIP is waitlisted and your calculation depends on it — model without RSIP first
- East- or west-facing roof with significant tree shading — production loss in already-moderate sun hours is costly
- Planning to sell within 7–10 years — payback may not be reached, though solar may add sale value
- Monthly electricity bill under $150 — smaller bills mean smaller absolute annual savings
What to Do Next
Check current RSIP program status before modeling your ROI.
Visit the Connecticut Green Bank RSIP page and confirm whether the program is accepting new applications. If it’s waitlisted, calculate your payback without RSIP and see if solar still pencils out.
Verify your Eversource or UI net metering export rate.
Call your utility or check your tariff online. The export rate (typically $0.03–$0.05/kWh) affects how you size your system — oversizing for exports has very low financial value in Connecticut.
Run your personalized Connecticut solar estimate.
Use the Solar ROI Calculator with your actual monthly bill, utility, and roof details. Connecticut’s high rates and moderate sun hours create a specific ROI profile — model with and without RSIP to understand your range.
Get 3+ quotes from RSIP-approved Connecticut installers.
To access RSIP payments, your installer must be approved by the Connecticut Green Bank. Quotes in CT typically range $22,500–$31,500 for a 9 kW system — compare at least three before deciding.
Get your Connecticut solar estimate in 60 seconds
Enter your utility, monthly bill, and RSIP eligibility — see your 2026 payback period and 25-year savings with no email required.
Adding battery storage? Our Battery Storage Calculator models Connecticut’s ConnectedSolutions demand-response program and Eversource TOU rate optimization for battery-paired solar systems.
Related Guides
- Is Solar Worth It in 2026? — National state-by-state solar ROI analysis including New England states after Section 25D expired.
- Battery Storage: Northeast Storms and Grid Resilience — Why Connecticut homeowners add battery storage beyond the financial ROI case.
- Home Battery Storage ROI: Massachusetts 2026 — Neighboring state battery analysis with ConnectedSolutions demand response.
- Battery Storage Incentives by State 2026 — How Connecticut's programs compare to SGIP and other major state battery incentives.
