Connecticut Solar Incentives in 2026: What Homeowners Should Know

Are There Any Solar Incentives in CT in 2026?

Yes. Connecticut homeowners may still benefit from:

• The RRES solar compensation program
  
  
• Additional income-based incentives
  
  
• Sales tax exemption
  
  
• Property tax exemption
  
  
• Smart-E financing
  
  
• In some cases, separate incentives tied to battery storage, not just solar panels alone

What’s changed is that the federal residential clean energy credit for new residential solar installations generally does not apply to systems placed in service in 2026.

The Federal Solar Tax Credit in 2026: Gone for New Residential Installations

This is the biggest update.

The IRS says the Residential Clean Energy Credit equals 30% of eligible costs for qualified clean energy property installed from 2022 through December 31, 2025, and that the credit is not available for property placed in service after December 31, 2025.

What that means in plain English

If a homeowner’s solar system was placed in service by December 31, 2025, they may still be able to claim the credit if they otherwise qualify. But for a new residential solar system completed in 2026, that homeowner credit is no longer available under current IRS guidance.

So for this article’s audience, the answer to “Is there a federal solar tax credit for CT homeowners in 2026?” is:

Not for newly placed-in-service residential systems in 2026.

Connecticut’s Main Solar Program in 2026: RRES

For homeowners in Connecticut, the main statewide solar incentive structure is the Residential Renewable Energy Solutions (RRES) program. Eversource and UI both describe RRES as the current residential solar incentive framework, and both note that customers who installed solar before January 1, 2022 were generally under the older net metering structure instead.

RRES gives residential solar customers the option to choose one of two tariff structures:

• Netting
  
  
• Buy-All

Netting Tariff

Under the netting structure, the incentive rate is tied to the current retail electric rate plus any applicable quarterly REC payment. For approved projects submitting in 2026, Eversource says the REC payment rate is currently $0, although some homeowners may still qualify for additional income-based incentives.

Buy-All Tariff

Under the buy-all structure, the utility purchases all of the power and RECs from the system under a fixed compensation structure rather than simply offsetting usage in the way homeowners often think of with older net metering models. UI’s RRES FAQ describes the program as offering residential installations the opportunity to sell energy and RECs at a fixed 20-year price by selecting either Buy-All or Netting.

Important distinction

A lot of older solar content still talks about classic Connecticut net metering as if it is the default option for new homeowners. That is outdated. Eversource explicitly says the Connecticut Net Metering Program is closed to new enrollment and points new customers to the Renewable Energy Solutions programs instead.

Additional Income-Based Incentives in Connecticut

This is one of the most important 2026 details for homeowners who may qualify.

Eversource states that homeowners may be eligible for an additional incentive if:

• household income is at or below 60% of state median income, or
  
  
• the solar installation is in an economically distressed community.

For applications submitted in 2026, Eversource lists these additional buy-all incentive rates:

• $0.055/kWh for households at or below 60% of state median income
  
  
• $0.0275/kWh for installations in an economically distressed community

A customer can receive one additional incentive, not both.

This means that while the federal homeowner tax credit has effectively dropped out for 2026 residential installs, some Connecticut households may still have meaningful state-level value available depending on income and project location.

Smart-E Loan: Still Relevant in 2026

The Connecticut Green Bank Smart-E Loan is not a tax credit or rebate, but it remains one of the most useful affordability tools for homeowners.

Connecticut Green Bank says Smart-E can be used for over 90 home energy and resiliency-related improvements, including solar panels, and notes that the current maximum loan amount is $50,000. It also describes the loan as designed to help homeowners access low-rate, flexible-term financing.

For homeowners who were expecting the federal tax credit to reduce their out-of-pocket cost in 2026, financing options like Smart-E may matter even more now.

Connecticut Solar Tax Exemptions Still Matter

Even without the residential federal tax credit for new 2026 installs, Connecticut homeowners may still benefit from state tax treatment that improves project economics.

Property Tax Exemption

Connecticut has been known for protecting homeowners from a property tax increase tied to the value added by a solar installation. This remains one of the more homeowner-friendly aspects of going solar in the state, though homeowners should still confirm current local treatment with their municipality or tax professional before relying on it for a financial decision.

Sales Tax Exemption

Connecticut also has a reputation for favorable solar sales tax treatment, which can reduce upfront cost. Because these tax issues can be technical and sometimes depend on the transaction structure, it is smart to verify the current treatment with your installer and tax advisor before signing.

I’m deliberately more cautious here than in the original article because tax treatment should be verified against current CT rules and your project paperwork.

What About Battery Incentives?

If a homeowner is pairing solar with storage, there may be additional value available through Energy Storage Solutions.

Connecticut Green Bank’s 2026 program update says residential storage incentives run at $300 to $550 per kW-year, with higher rates for underserved and low-income customers.

That is not the same thing as a panel-only solar incentive, but it can materially affect the economics of a solar-plus-storage project in 2026.

What Happened to RSIP?

Some homeowners still search for the old Residential Solar Investment Program (RSIP).

That program is legacy material now. Connecticut’s current residential solar structure is the Residential Renewable Energy Solutions (RRES) program. Eversource and UI both point new residential solar customers toward RRES, not RSIP or old-school net metering enrollment.

What Connecticut Homeowners Should Take Away in 2026

Here’s the clean summary:

• Yes, Connecticut still has solar incentives in 2026.
  
  
• No, the federal residential solar tax credit is not available for newly placed-in-service residential systems in 2026.
  
  
• New residential customers are generally looking at RRES, not old net metering.
  
  
• Some homeowners may qualify for additional income-based RRES incentives.
  
  
• Smart-E financing is still active and can help offset the loss of the homeowner federal credit.

If storage is part of the project, there may be separate battery incentives worth looking at.