Solar in Connecticut: Small State, Big Electricity Bills, Strong Case for Solar

Connecticut does not look like a solar state. It is small, it is cloudy in winter, and it sits at the northern end of the East Coast. But Connecticut has something that makes solar math work in spite of all that: electricity rates that are among the highest in the entire country. When you are paying $0.27-$0.35/kWh for electricity — nearly double the national average — even modest solar production translates to serious savings.

Connecticut also has better solar policy than you might expect. Net metering, a solid renewable energy market, and progressive state energy goals all work in your favor. Here is the complete picture for 2026.

The Good News

Extremely High Electricity Rates

This is the engine that drives Connecticut solar economics. Average residential rates:

• Eversource: $0.28-$0.35/kWh
• United Illuminating (UI): $0.27-$0.33/kWh

The national average is $0.16/kWh. Connecticut homeowners pay roughly 75-100% more than that. Every kWh your panels produce avoids a very expensive kWh from the grid. This single factor makes Connecticut a better solar market than sunnier states with cheap electricity.

Net Metering at Full Retail Rate

Connecticut requires utilities to offer net metering for residential systems up to 25kW. Excess generation is credited at the full retail rate. Credits roll over month to month and are reconciled annually. This is one of the stronger net metering policies remaining in the country.

Full retail net metering at $0.30+/kWh means your exported electricity is worth 3-5x more than in states that have gutted their net metering programs. This dramatically improves your economics.

RSIP and Successor Programs

Connecticut's Residential Solar Investment Program (RSIP) provided performance-based incentives for years. While the original RSIP may be fully subscribed, successor programs through the Connecticut Green Bank have continued to support residential solar. Check current availability — these programs have provided $0.04-$0.08/kWh in additional payments on top of net metering for the first 6-10 years of system life.

SREC / REC Market

Connecticut has a renewable portfolio standard that creates demand for Renewable Energy Certificates (RECs). As a solar system owner, your panels generate RECs that can be sold through the Connecticut Green Bank or REC aggregators. The value varies — typically $20-$50 per REC (1 REC = 1 MWh). For a typical system producing 9 MWh/year, that is $180-$450 in additional annual income.

Property Tax Exemption

Connecticut exempts solar energy systems from local property tax for the duration of the system's useful life. Given Connecticut's high property tax rates (among the highest in the nation), this is a significant benefit.

The Challenges

Below-Average Sunshine

Connecticut averages 3.8-4.3 peak sun hours per day — below the national average of 4.5. Winter months (November-February) are particularly weak, with short days and frequent overcast skies. Your panels will produce 30-40% less than the same panels in Arizona or even North Carolina.

This is the fundamental limitation. You cannot change the weather. But the high electricity rates more than compensate — a kWh in Connecticut is worth 2-3x a kWh in most sunbelt states.

High Installation Costs

Connecticut installation costs run $3.00-$3.50 per watt — above the national average. Permitting, labor, and the smaller installer market all contribute. A typical 8kW system costs $24,000-$28,000.

Aging Roofs and Tree Coverage

Connecticut has older housing stock and dense tree coverage. Many homes have roofs with limited south-facing exposure or significant shading from mature trees. A site assessment is critical before committing — tree trimming can help, but some properties simply do not have the solar access to justify the investment.

The Connecticut Solar Math (2026)

Typical 8kW system (Eversource territory):

• Installed cost: $25,600 ($3.20/watt)
• Federal ITC: $0 (expired)
• State/Green Bank incentives: $0-$3,000 (varies by program availability)
• Net cost: $22,600-$25,600

Annual production: ~9,200 kWh

Average Eversource rate: $0.31/kWh

REC income: ~$300/year

Annual savings calculation:

• Net metering savings: 9,200 kWh x $0.31 = $2,852
• REC income: $300
• Total annual value: ~$3,150

Payback period: 7-8 years (with Green Bank incentive), 8-10 years (without)

25-year savings: $55,000-$75,000

Those numbers are not a typo. Connecticut's sky-high electricity rates mean that even with below-average sun and above-average installation costs, the payback period is among the shortest in the country. The 25-year savings rival California.

With Connecticut's above-average installation costs, comparing quotes from multiple installers can save you thousands and shave a year or more off your payback period.

When Solar Makes Sense in Connecticut

Install if:

• You are an Eversource or UI customer paying $0.27+/kWh (that is almost everyone)
• Your roof has decent south-facing exposure with minimal shading
• You plan to stay in the home 8+ years
• Your roof is in good condition with 10+ years of remaining life
• You want to lock in current net metering terms

Wait or skip if:

• Your roof is heavily shaded by trees you cannot or do not want to trim
• Your roof needs replacement within 5 years (do the roof first, then add solar)
• You plan to move within 4 years
• You are in a condo or townhouse with shared roof and HOA restrictions
• Your electricity usage is very low (under $80/month)

Key Takeaways

• Connecticut electricity rates are 75-100% above the national average — this drives the entire solar case
• Full retail net metering at $0.30+/kWh makes every exported kWh extremely valuable
• Below-average sunshine (3.8-4.3 peak sun hours) is more than offset by high rates
• REC income adds $200-$450/year on top of net metering savings
• Payback runs 7-10 years — among the fastest in the country despite limited sun
• 25-year savings of $55,000-$75,000 rival California and exceed most sunbelt states
• Property tax exemption protects against Connecticut's high property tax rates
• Connecticut is a top-tier solar market that most people underestimate

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