How Do We Rate Solar Companies?
TL;DR: We rate solar installers from 1 to 5 stars to help you pick the best one. High stars mean they’re really good at what they do and treat their customers right. Low stars? Not so much. We give credit to companies that have been around for a while, know what they are doing, have a high standard of workmanship and equipment, don’t hire subcontractors to keep the bar of solar installation quality high and have good local reviews from real customers (yes, we check if the reviews are actually real or fake). Companies we choose as top-rated know and can help with federal and local solar incentives to help you save, have good financing plans, and guarantee their work. We’re here to point you to the solar companies that truly rock, making going solar easy and worthwhile for you.
Check our detailed review process here.
Quick Recap
- Is It Worth Going Solar in Connecticut? Yes, going solar in Connecticut is worth it. The state ranks 23rd in the country for solar installations, and the average solar payback period is 8 years.
- How Much Does Solar Save Homeowners in Connecticut? The average homeowner in Connecticut saves $58,012 over the lifetime of their solar system.
- What Is the Average Cost of Going Solar in Connecticut? The average cost of a home solar power system in Connecticut is $26,175 before tax credits and incentives.
- Connecticut Solar Incentives Connecticut offers several solar incentives, including the Residential Renewable Energy Solutions (RRES) Program, federal solar tax credit (ITC), and net metering.
- How to Pick the Best Solar Installer in Connecticut? You should compare multiple solar quotes, check customer reviews, verify certifications and licenses, and consider both local companies and national providers.
- What to Look for in Solar Quotes? Key factors to consider in solar quotes include proposed system size, cost per watt, incentives, energy production estimates, projected electricity rate increases, solar panel brand and model, panel degradation rate, financing, and warranties.
- Will Solar Increase Your Home Value in Connecticut? Yes, going solar can significantly boost your property’s value in Connecticut.
- What Are the Solar Financing Options Available in Connecticut? Financing options for solar in Connecticut include cash purchase, loan, C-Pace financing, and power purchase agreement.
Is It Worth Going Solar in Connecticut?
Going solar in Connecticut is definitely worth it for most homeowners. There are significant financial and environmental benefits to installing solar panels in the Nutmeg State.
The main advantages of switching to solar energy in Connecticut include:
Substantial electricity bill savings: The average Connecticut resident pays around $190 per month for electricity, the second highest in the nation. By going solar, homeowners can save 43-63% on their monthly energy costs, which adds up to about $2,284 per year. Over the 25+ year lifespan of the solar panels, this translates to $58,012 or more in total electricity cost savings[4].
Solar incentives and tax credits: Connecticut has some of the best solar incentives in the country, making it even more affordable to install panels. These include:
- 30% federal solar tax credit
- State solar rebate programs
- Sales and property tax exemptions for solar
- Net metering to sell excess solar energy back to the grid
Increased home value: Solar panels can increase a home’s resale value by an average of $15,646 in Connecticut according to Zillow estimates. The property tax exemption means this added value doesn’t lead to higher property taxes.
Beyond the financial benefits, solar provides clean energy that reduces reliance on fossil fuels and helps combat climate change. Solar allows you to shrink your carbon footprint.
Generating your own solar electricity makes you less reliant on the utility grid and locks in energy costs for 25+ years, protecting against future rate hikes.
The combination of high electricity rates, strong solar incentives, and environmental benefits make going solar a smart investment for Connecticut homeowners. With potential savings of over $58,000 on electricity bills, solar panels will pay for themselves in around 8 years on average. Installing solar is a great way to save money long-term while also helping to create a more sustainable future in Connecticut.
How much does solar save homeowners in Connecticut?
Average Cost of Electricity in Connecticut On average, residents of Connecticut spend about $267 per month on electricity. This adds up to $3,204 per year1. The average electric rates in Connecticut cost 28 ¢/kilowatt-hour (kWh)1, which is significantly higher than the national average.
Savings with Solar Panels Solar panels can significantly reduce or even eliminate these costs. Based on the intensity and amount of sunlight hours in Connecticut, the average electricity customer in Connecticut will need an 8.6 kilowatt (kW) solar panel system to offset 100% of their annual electricity consumption. The average cost for such a system is around $27,000 prior to incentives.
Assuming a 5.5% annual increase in electricity prices and that you install your system with a $0-down loan, you can expect to save $3,200 in your first year, $17,900 over five years, $41,300 over 10 years, and $111,900 over 20 years on electric bills in Connecticut.
Net Metering Policies in Connecticut Connecticut had a net metering program for a couple of decades, but that changed on January 1st, 2022. The new program is called the Residential Renewable Energy Solutions Program (RES program). The RES program offers two ways to sell solar back to the grid: a “Netting Tariff” and a “Buy All Tariff”.
The Netting Tariff is the best option for most homeowners. It offers monetary credits for excess solar energy on their energy bills that are equal to the retail rate for every kilowatt-hour (kWh). In addition, for 2022, Eversource customers will receive a small extra payment for every kWh they send to the grid, in exchange for the renewable energy credits generated by the system.
The Buy All Tariff is useful for companies that want to offer Power Purchase Agreements (PPAs) to homeowners looking to go solar. It offers a set dollar amount for all the energy generated by the system, which stays the same for 20 years2.
Both tariffs have additional energy credits available for low to moderate-income people, and those who live in state-identified “distressed municipalities”.
The high cost of electricity in Connecticut combined with the state’s favorable solar policies make solar panels a financially attractive option for many homeowners in the state. The savings from solar can be substantial, and the net metering policies can further enhance these savings. However, the exact savings will depend on a variety of factors including the size of the solar system, the cost of installation, and the homeowner’s electricity usage. It’s always a good idea to get multiple quotes and explore all available incentives and financing options when considering solar.
What is the average cost of going solar in Connecticut?
The average cost of going solar in Connecticut varies depending on the size of the solar panel system. Here are some estimates:
- For a 5 kW system, you’ll pay an average of $15,761 before incentives. Prices range from $13,397 to $18,125.
- For a 6 kW system, the cost is around $11,991 after claiming the 30% federal solar tax credit.
- The typical solar array in Connecticut costs $26,175 before any tax incentives or $18,323 after the federal solar tax credit. This total is based on the average cost per watt in the area of $3.49 and assumes you’ll need the standard 7.5 kW system most residents in your area require to offset energy demands.
*Please note that these are average costs and the exact cost can vary based on various factors such as the specific solar panel brand, the installer, and the specific characteristics of your home and electricity usage. It’s always a good idea to get multiple quotes to ensure you are getting the best price. Also, remember to factor in the various federal, state, and local incentives available when calculating the final cost of going solar. These incentives can significantly reduce the cost of your solar panel system.
Connecticut Solar Incentives
Connecticut offers several attractive incentives and rebate programs to encourage homeowners to install solar panels. Here’s a detailed overview of the key incentives available:
Federal Solar Incentives
Residential Clean Energy Credit (formerly called the Federal Investment Tax Credit or ITC): This allows you to deduct 30% of the cost of your solar panel system from your federal taxes. For the average 5 kW system costing $15,702 in Connecticut, the 30% credit reduces the net cost to $10,991.
Connecticut State Solar Incentives
Sales Tax Exemption: Connecticut waives the 6.35% sales tax on the purchase of solar panels and renewable energy equipment. On a $15,702 system, this saves around $997.
Property Tax Exemption: Installing solar panels is exempt from raising your property taxes, even though they increase your home’s value. Connecticut has high property tax rates, so this can lead to significant savings over time.
Smart-E Loans: The Connecticut Green Bank offers no-money-down, low-interest loans for solar installations on 1-4 unit owner-occupied homes. Rates range from 4.49% to 7.49% depending on the loan term (5-20 years).
Net Metering: Connecticut utilities must compensate you for excess solar electricity sent back to the grid, typically as a credit on future electric bills. The Eversource utility offers a buy-all option where they purchase all your solar generation.
Local Rebates and Incentives
- Some municipal utilities like Norwich Public Utilities and Groton Utilities provide rebates on energy-efficient electric appliances that can be bundled with solar[. For example, Groton Utilities has rebates of $200-5,000 for insulation, heat pumps and water heaters.
- Additional incentives are available for low-income households (at/below 60% of state median income) or solar installations in economically distressed communities. These provide an added $.0175-$.055 per kWh generated.
The combination of the 30% federal tax credit, the Connecticut sales and property tax exemptions, net metering, and low-interest solar loans make going solar very financially attractive for Connecticut homeowners. With the typical system paying for itself in energy savings in around 8 years, solar provides a strong return on investment while also helping the environment.
Net Metering Policies in Connecticut
Let’s break down the net metering program in Connecticut, which is now known as the Residential Renewable Energy Solutions Program (RES program).
Overview of the RES Program: The RES program replaced the legacy net metering program in Connecticut on January 1st, 2022. It was designed by the Connecticut Public Utilities Regulatory Authority (PURA) with the goal of fostering a solar industry that installs 50-60 megawatts (MW) of solar each year. The program offers two ways to sell solar back to the grid: a “Netting Tariff” and a “Buy All Tariff”.
Netting Tariff The Netting Tariff is the best option for most homeowners. It offers monetary credits for excess solar energy on their energy bills that are equal to the retail rate for every kilowatt-hour (kWh). In addition, for 2022, Eversource customers will receive a small extra payment for every kWh they send to the grid, in exchange for the renewable energy credits generated by the system1. A customer who enters the program will be enrolled for 20 years.
Buy All Tariff The Buy All Tariff is useful for companies that want to offer Power Purchase Agreements (PPAs) to homeowners looking to go solar. It offers a set dollar amount for all the energy generated by the system, which stays the same for 20 years.
Additional Benefits Both tariffs have additional energy credits available for low to moderate-income people, and those who live in state-identified “distressed municipalities”.
Benefits of Net Metering Net metering allows you to use and sell up to 100% of your renewable electricity to a utility company2. Here are some benefits of net metering:
- Use 100% Of Your Solar Energy Production: Net metering allows you to use and sell up to 100% of your renewable electricity to a utility company.
- Save Money On Your Electricity Bill: You can save money on your electricity bill as you are credited for the excess energy your solar panels produce.
- No Need For External Battery Storage: Since the excess energy is fed back into the grid, there’s no need for external battery storage.
- Increase The Value Of Your Property: Homes with solar panels often have higher property values.
- Contribute To Reduced CO2 Emission: By using solar energy, you’re reducing the amount of CO2 emissions, which is beneficial for the environment.
The RES program in Connecticut provides a good financial return to solar installation owners, with certainty for the future. It allows homeowners to save money on their electricity bills, increase the value of their property, and contribute to a more sustainable environment. However, the exact savings and benefits will depend on a variety of factors including the size of the solar system, the cost of installation, and the homeowner’s electricity usage. It’s always a good idea to get multiple quotes and explore all available incentives and financing options when considering solar.
Are There Any Community Solar Programs in Connecticut?
Yes, there are several community solar programs available in Connecticut that allow residents to benefit from solar energy without installing panels on their own property. Here are some of the key programs:
- Solar For All (Connecticut Green Bank): This program provides an elevated incentive for low-to-moderate income (LMI) homeowners to go solar. It involves a higher LMI solar incentive and support for solar providers to enter the LMI market[3]. PosiGen is an approved provider for this program.
- Connecticut Clean Energy Options Program: Offered by Community Energy, this program allows Eversource and United Illuminating customers to purchase Renewable Energy Certificates (RECs) to support wind and solar development in the Northeast. Customers can choose 50% or 100% clean energy options for an additional cost per kWh.
- New Haven Community Solar: This organization crowd-invests in solar installations on affordable housing properties in New Haven[9]. Investors receive annual dividend payments, while the housing developments get access to discounted solar electricity.
- Shared Clean Energy Facilities (SCEF) Pilot Program: This statewide program enables customers to subscribe to a portion of the energy produced by a local renewable energy project and receive bill credits[8][10]. Projects are 100kW-2MW in size and must have a minimum of 10 subscribers.
- Eversource SCEF Program: Eversource plans to add 180 MW of shared clean energy projects over 6 years[11]. Most eligible customers (based on income or inability to install their own solar) will be automatically enrolled to receive a small monthly bill credit for 20 years at no cost. Some may be able to apply.
To take advantage of these programs, interested residents can:
- See if they qualify as an LMI household for Solar For All and contact PosiGen
- Sign up for the CT Clean Energy Options program through their utility
- Invest in New Haven Community Solar projects as they become available
- Check if their utility has any SCEF projects open for subscription
- Eversource customers can check eligibility and enrollment options for their SCEF program
Community solar allows more Connecticut residents, especially renters and those with low-to-moderate incomes, to access the benefits of solar energy in an affordable way. These programs are helping to expand clean energy access across the state.
