Connecticut is the second US state where the first decision isn't a number — it's a tariff. Connecticut homeowners pick one of two mutually exclusive solar tariffs at interconnection, locked 20 years, under the Residential Renewable Energy Solutions (RRES) program administered by Eversource and United Illuminating under PURA oversight. Once you enroll in one tariff, you forfeit the other for the life of the contract. The traditional net metering program closed December 31, 2021 under Public Act 19-35 — new buyers must pick one of the two RRES tariffs.
Path 1 (Netting Tariff). Self-consumed solar and exports both credit at full retail (about $0.29/kWh on Eversource — among the highest US rates, the New England grid). Credits roll over indefinitely with no annual expiration; they're only cashed out at account closure. There's no haircut on the export rate, unlike Rhode Island (80%) or California NEM 3.0 (avoided cost). The catch is the Solar Energy Adjustment (SEA) charge of $0.0402/kWh on ALL production (self plus export, not only export), locked 20 years for 2026 enrollees — a new feature most installer proposals omit.
Path 2 (Buy-All Tariff). The utility buys all production at $0.3289/kWh for 20 years, locked at enrollment. Self-consumption does not apply: every kWh you generate is sold to the utility, and you buy your house's consumption back at the standard retail rate. SEA $0.0402 also applies here (with a citation caveat — see below). Buy-All is mostly used by lease and PPA structures.
These tariffs cannot stack. RRES is authorized for new enrollment only through December 31, 2027 — after that, the program's future is undecided. Most sources converge on roughly 8-10 year payback for Netting; Buy-All depends heavily on system size and lease/PPA structure.
What changed (and why "30% federal" quotes are dead)
The federal Residential Clean Energy Credit (§25D) — the 30% homeowner credit — was repealed for systems installed after December 31, 2025. For 2026 Connecticut buyers, the federal credit on a purchased system is $0. The same applies to home batteries purchased outright. The §48E commercial credit (30%) still exists, but only for leased or third-party-owned systems where construction begins before July 4, 2026 — and the lessor claims it, not you. Full federal context here.
The repeal came through the One Big Beautiful Bill Act (P.L. 119-21), signed in July 2025. Most aggregator and installer sites have not updated their 2026 Connecticut quotes. If you see "30% federal solar tax credit" on a CT solar proposal, ask the installer to redo the math with $0 federal.
VERIFIED 2026-06 · irs.govPath 1: Netting Tariff (default — most homeowners)
This is the default path for most Connecticut residential buyers. It looks like a friendlier net metering than Rhode Island or California on paper — full retail on both self-consumption and exports — but the new SEA charge offsets a meaningful chunk of that benefit.
The mechanics. Self-consumed solar offsets your full retail rate (about $0.29/kWh on Eversource). Exports credit at the same full retail rate — 100%, not haircut. Credits roll over indefinitely from month to month; they don't expire, and they're only cashed out when you close the account. Year-end reconciliation pays remaining credits at avoided cost (around $0.04-0.08/kWh) — far below retail. So while credits don't expire, the avoided-cost reconciliation makes oversizing punitive.
The SEA charge. The Solar Energy Adjustment is the new (PURA Docket 22-08-05) per-kWh charge on all production, applied to self-consumption AND exports, not just exports. For 2026 enrollees the rate is $0.0402/kWh, locked 20 years from enrollment. Legacy systems (enrolled before January 1, 2026) are grandfathered at $0.005/kWh through December 31, 2039. The 2026 rate is roughly 8 times the legacy rate — that's not a typo, that's a real step change.
The arithmetic: $0.0402 deducted from $0.29 retail leaves an effective net credit of about $0.24-0.26/kWh on every kWh you generate, depending on your specific retail tier. On a larger 11 kW residential system producing about 12,925 kWh/year, SEA deducts about $520/year — every year for 20 years. Smaller systems see proportionally smaller deductions.
Source caveat — SEA terminology. Some sources describe this charge as a $0.0325/kWh "non-bypassable charge" rather than $0.0402 SEA. We use $0.0402 per PURA Docket 22-08-05. The $0.0325 figure may reflect a different rate window, a different component decomposition, or an outdated source. Verify with PURA before signing if it matters for your math.
Battery is eligible in Netting only. Connecticut's Energy Storage Solutions (ESS) program applies here — see the "what both paths share" section below.
VERIFIED 2026-06 · PURA RRES Netting Tariff, Docket 22-08-05Path 2: Buy-All Tariff
Path 2 is structurally a different kind of program: instead of crediting electricity savings, it buys your electricity from the utility. Every kWh your system produces is sold; every kWh your house consumes is purchased back at the standard retail rate. The two transactions are separate.
The rate. Buy-All pays $0.3289/kWh for PY2026 enrollees on all production, locked 20 years. This is the strongest fixed export rate in New England. PY2025 was $0.3195; the rate is administered by Eversource and United Illuminating, declining yearly for new enrollees.
SEA also applies to Buy-All — with a caveat. Per the cross-source skeleton, SEA $0.0402/kWh is deducted from Buy-All production as well. Be aware: source coverage of SEA application to Buy-All is materially weaker than coverage of SEA application to Netting. Sources are clearest on Netting + SEA; the Buy-All + SEA combination is the least firm fact in this Connecticut picture. Verify with PURA Docket and your installer before relying on the Buy-All math. If SEA does apply, the effective Buy-All rate is $0.3289 minus $0.0402 = about $0.2887/kWh net.
Self-consumption does not apply under Buy-All. You sell every kWh and buy your house's consumption back at retail (about $0.29). The economics depend on the gap between the locked Buy-All rate and the retail rate — and on how that retail rate escalates over 20 years.
Mostly lease and PPA. Most Connecticut Buy-All enrollees are structured as leases or power purchase agreements rather than outright system purchases. The §48E commercial credit (30%) flows to the lessor in those structures. If you're buying outright, Netting usually pays back faster.
VERIFIED 2026-06 · RRES Buy-All Tariff, PY2026 $0.3289/kWh; Eversource & UIHow to choose — a heuristic, not a decision
The calculator at the top of this page renders both tariffs side-by-side for your specific system size. Use that for your real number. As a rule of thumb:
- Outright purchase, typical residential (5-10 kW), planning to hold the system long-term: Netting usually wins. Self-consumption at full retail is structurally more valuable than selling all production at a locked Buy-All rate and buying retail back, especially as utility rates escalate over 20 years.
- Lease or PPA structure, or you want a locked-rate revenue stream: Buy-All is the path designed for that. The lessor or PPA provider claims the §48E credit and pays you a share via lease economics.
- Either path: post-year-20 status is undefined. Connecticut regulation says systems "revert to whatever tariff exists at that time." The calculator conservatively continues plain retail net metering in years 21-25, but the policy around 2046 is not guaranteed by design. Don't lean too hard on year-21+ revenue projections.
There's no single right answer — Connecticut's design forces a real choice based on ownership structure, expected horizon, and your view on long-term rate escalation. The calculator handles the per-system math; the structural facts are what this article gives you.
Run your real Connecticut payback (with the tariff toggle) →What both paths share
These facts apply regardless of which tariff you pick.
Retail electricity rate. About $0.29/kWh on Eversource — among the highest US rates, typical of the New England grid (imported energy, aging transmission). The all-in EIA figure is closer to $0.30/kWh when you include the Public Benefits Charge that appears on your bill — and that's a charge solar does NOT offset. Whichever tariff you pick, the Public Benefits portion of your bill keeps showing up.
VERIFIED 2026-06 · eia.govSales tax — EXEMPT. Connecticut exempts solar equipment from the 6.35% state sales tax under CGS § 12-412(117), using Form CERT-140. On a typical residential system that's about $1,662 saved at install. Your installed quote should NOT include sales tax — if it does, ask the installer to apply the exemption before signing.
Property tax — EXEMPT INDEFINITELY. Connecticut exempts the added home value from residential solar from property tax under CGS § 12-81(57) — not for a fixed 20-year window like Maryland, but indefinitely. The effective statewide property tax rate runs about 2.04% — high enough that this exemption is materially valuable over the system lifetime. Exemption is typically automatic at permit finalization; some assessors request Form CEEF-43.
No state income tax credit. Connecticut does not offer a state-level solar income tax credit. Don't budget for one. The RSIP upfront grant program (the old solar rebate) closed in 2021 at 350 MW — fully subscribed, no longer available to new buyers.
Battery: Energy Storage Solutions (ESS). Connecticut runs an unusually generous battery program through Eversource and United Illuminating, running through December 31, 2030:
- Upfront rebate: $250/kWh capped at $16,000 ($600/kWh for low-income/underserved households).
- Annual performance payment: $300/kW of battery power per year for 10 years ($550/kW for low-income households).
- Stacks with the RRES tariff revenue.
- Funding moves in tranches and pauses. Verify availability with Eversource or UI before relying on either component.
- Eligible only under the Netting Tariff path.
There's no federal credit on the battery purchase in 2026 (§25D repealed for storage). For a representative 10 kWh / 5 kW battery, the upfront ESS rebate is $2,500 and the annual performance is $1,500/year for 10 years — totaling about $17,500 of ESS support, materially better than what most states offer for residential battery storage.
The federal credit — gone, and the SEA installers hide
Worth a separate section because Connecticut has two specific gotchas worth flagging plainly.
Federal §25D is dead. The 30% Residential Clean Energy Credit was repealed by the One Big Beautiful Bill Act (P.L. 119-21), signed in July 2025. For 2026 purchases, the federal credit is $0 on solar panels and batteries alike. The §48E commercial credit (30%) still exists, but only for leased or third-party-owned systems where construction begins before July 4, 2026 — the lessor claims it. If a Connecticut quote includes "30% federal" on a 2026 purchase, the math is outdated.
SEA is the local installer trick. Connecticut's Solar Energy Adjustment of $0.0402/kWh on ALL production is a real, locked deduction from year-1 savings and from every subsequent year for 20 years. Most installer proposals omit it. On an 11 kW system that's about $520/year — multiplied by 20 years, with degradation, it adds up to thousands of dollars the proposal doesn't show.
If you see a Connecticut solar proposal that:
- Lists "30% federal credit" — ask for an updated version with $0 federal.
- Doesn't mention SEA, doesn't show a per-kWh adjustment, or claims net metering credits exports at full retail with no offsetting charge — the math is missing the SEA deduction. Ask the installer to add a line item for SEA at $0.0402/kWh on production (or whatever PURA-confirmed rate applies on your enrollment date).
Source dispute on SEA. Some sources describe Connecticut's adjustment as a "$0.0325/kWh non-bypassable charge" rather than $0.0402 SEA — different terminology, different number. The $0.0402 figure comes from PURA Docket 22-08-05; the $0.0325 figure may reflect a different rate window or a different bill component. We use $0.0402 in the calculator. Verify with PURA before committing to either number if the difference matters for your math.
The honest picture
| Fact | Netting (default) | Buy-All | Source |
|---|---|---|---|
| Federal credit | $0 | $0 | IRS — §25D repealed |
| State income tax credit | None | None | See inline citations |
| Self-consumption rate | 100% retail (about $0.29) | Not applied (sold) | PURA RRES |
| Export rate | 100% retail (about $0.29) | $0.3289/kWh (PY2026, locked 20 yr) | PURA RRES; Eversource & UI |
| Solar Energy Adjustment (SEA) | $0.0402/kWh on ALL production, locked 20 yr | $0.0402/kWh (per skeleton; weaker source support) | PURA Docket 22-08-05 |
| SEA legacy rate | $0.005 grandfathered through Dec 31, 2039 | (same) | PURA Docket 22-08-05 |
| Roll-over | Indefinite; cashed at account closure | N/A (per-kWh sale) | PURA RRES |
| Year-end reconciliation | Avoided cost about $0.04-0.08 | N/A | RRES Netting Tariff |
| Stacking | Cannot combine with Buy-All | Cannot combine with Netting | PURA |
| RRES new enrollment window | Through Dec 31, 2027 | (same) | Public Act 19-35; RRES |
| Post-year-20 status | Reverts to whatever tariff exists | (same) | Calculator continues plain retail NM conservatively; not guaranteed |
| Sales tax | EXEMPT (6.35%, saves about $1,662) | EXEMPT (same) | CGS § 12-412(117); Form CERT-140 |
| Property tax | EXEMPT indefinitely | EXEMPT (same) | CGS § 12-81(57) |
| Effective property tax rate | About 2.04% (exemption valuable) | (same) | CT statewide average |
| Battery (ESS) | Eligible: $250/kWh up to $16,000 + $300/kW/yr × 10 yr | Not eligible | Eversource / UI ESS (through Dec 31, 2030) |
| RSIP upfront grant | Closed 2021 at 350 MW (subscribed) | (same) | See inline citations |
Before you commit:
- Reject any quote that includes a 30% federal credit. Repealed for 2026 purchases.
- Ask whether SEA is in your proposal math. If the installer doesn't include a per-kWh charge on production, the year-1 savings number is overstated by about $0.0402 times your annual kWh. On an 11 kW system that's about $520/year.
- Decide Netting vs Buy-All explicitly — locked 20 years at interconnection, cannot stack, cannot switch.
- Don't budget for the old RSIP grant — closed 2021, fully subscribed.
- Don't budget for a state income tax credit — Connecticut doesn't have one.
- Don't oversize on Netting. Year-end reconciliation pays remaining credits at avoided cost (about $0.04-0.08), well below retail. Match generation to consumption.
- Verify Buy-All + SEA math with PURA. Source coverage of SEA application to Buy-All is weaker than to Netting; treat that combination as the least firm fact.
- If you want a battery, plan around Netting. ESS upfront ($250/kWh up to $16,000) and annual performance ($300/kW times 10 yr) are eligible only under Netting. Funding moves in tranches — verify with Eversource or UI.
- Confirm sales tax is excluded from your installed quote. CGS § 12-412(117), Form CERT-140 — saves about $1,662.
- Don't lean on year-21+ revenue. Post-2046 RRES policy is not designed. The calculator's conservative continuation isn't guaranteed.
Estimates only — RRES rates change yearly for new enrollees, ESS funding moves in tranches, SEA-on-Buy-All has weaker source support than SEA-on-Netting. Verify with PURA Docket 22-08-05, Eversource / United Illuminating, and PURA. This is not financial advice.