Connecticut has some of the highest residential electricity rates in the country. That hasn’t changed. What has changed in 2026 is the structure of the state’s main solar compensation program — and if you’ve heard the details are complicated, you’re not wrong.
Here’s a clear breakdown of what’s new, what’s still working in your favor, and whether solar makes sense for Connecticut homeowners right now.
First: Eversource and UI Raised Rates — Significantly
Before getting into the solar program changes, it’s worth starting with the context that matters most: electricity is more expensive in Connecticut than it was six months ago.
On January 1, 2026, Eversource’s new supply rate took effect, increasing the average residential customer’s bill by approximately $20 per month — a roughly 29% increase from where rates had been. As of early 2026, Eversource customers are paying 12.64 cents per kilowatt-hour for supply alone, before delivery charges.
United Illuminating customers saw a similar adjustment: a roughly 17% supply rate increase, bringing their rate to 13.695 cents per kilowatt-hour.
These are supply rates — they don’t include the delivery charges, which are separate. Total bills for CT homeowners are among the highest in the nation.
High electricity rates are one of the primary reasons solar makes financial sense in Connecticut. Every kilowatt-hour your panels produce is a kilowatt-hour you’re not buying from Eversource or UI. The higher those rates go, the more valuable each kilowatt-hour your system generates becomes.
What Changed in the RRES Program for 2026
Connecticut’s residential solar program is called the Residential Renewable Energy Solutions (RRES) program, and it replaced the old RSIP program in 2022. RRES offers two enrollment options: a Netting Tariff and a Buy-All Tariff. Most homeowners who own their systems use the Netting Tariff.
For homeowners enrolling in 2026, the most significant change is a new Solar Energy Adjustment charge on all solar production. This charge — added as a line item on your bill — is $0.0402 per kilowatt-hour produced by your system, up from $0.005/kWh previously. That’s roughly an 8x increase.
For a typical 11 kW system producing around 13,000 kWh per year, this charge comes to approximately $520 annually. It’s a real cost that every installer should be including in their savings estimates — and if yours isn’t, ask them to add it.
This charge does not apply to homeowners who enrolled in RRES before January 1, 2026. If you’re already in the program, your terms are unchanged.
What Didn’t Change (And What Actually Improved)
The Solar Energy Adjustment gets most of the attention, but there are parts of the Connecticut solar picture in 2026 that are actually better than before.
Buy-All Tariff rate increased. For homeowners who enroll in the Buy-All option — where all solar production is sold to the utility at a fixed rate — the 2026 rate is $0.3289 per kilowatt-hour, up from $0.3195/kWh in 2025. This rate is locked in for a 20-year term upon enrollment. Buy-All is most commonly used for lease and PPA systems, but it’s worth discussing with your installer to see which option fits your situation better.
Sales tax exemption still applies. Connecticut exempts solar equipment and installation from the state’s 6.35% sales tax. On a $25,000 system, that’s over $1,500 you don’t pay at signing.
Property tax exemption still applies. Solar adds real value to your home, but that added value is fully exempt from property tax assessment in Connecticut. Your tax bill won’t go up because you went solar.
Battery storage incentives improved. Connecticut’s Energy Storage Solutions program — which pairs battery storage with solar — is still running through December 31, 2030, and the incentives for lower-income and underserved-community customers actually increased this year. If you’re in Bristol, New Haven, Hartford, or other designated distressed municipalities, you may qualify for an enhanced incentive tier. Even at standard rates, the program can provide substantial upfront cost reductions on battery storage installations.
Smart-E Loan still available. The Connecticut Green Bank’s Smart-E Loan offers financing for solar at rates between 4.49% and 6.99% APR, with terms from 5 to 12 years — a competitive option for homeowners who want to own their system without a large upfront payment.
The Honest Math in 2026
The federal solar tax credit expired for homeowner-purchased systems at the end of 2025, which is a real loss. Connecticut doesn’t have a state income tax credit for solar to soften the blow the way New York does.
Here’s what the numbers look like without it. The average Connecticut solar installation runs about $30,800 before incentives for an 11 kW system. After the sales tax exemption and accounting for the Solar Energy Adjustment charge, most homeowners in Fairfield and New Haven counties are looking at a payback period in the range of 8 to 10 years, with lifetime savings over 25 years estimated around $100,000.
That math still works — especially at 2026 electricity rates.
Homeowners in Fairfield County should note one additional factor: coastal proximity along the Long Island Sound requires corrosion-resistant hardware and marine-grade racking components, which typically adds a 5 to 10% cost premium over inland installations. It’s not a dealbreaker, but it’s worth knowing upfront.
A Note on the Program’s Horizon
The RRES program is currently authorized through December 31, 2027. What happens after that is uncertain — program terms could be extended, revised, or replaced entirely. Homeowners who enroll before the end of 2027 lock in their tariff rate for 20 years regardless of what happens to the program afterward. That’s meaningful long-term protection.
It’s not a reason to rush into a decision. But it is a reason to understand the timeline before assuming there’s no urgency.
Is Solar Still Worth It in Connecticut?
For most homeowners in Fairfield County, New Haven County, and across Eversource and UI territory: yes, with clear eyes about what changed.
The Solar Energy Adjustment is a real cost. Factor it in. The federal tax credit is gone. Factor that in too. What remains is a state with electricity rates among the highest in the country, a 20-year locked-in compensation rate for your solar production, sales and property tax protections, and meaningful battery storage incentives if you want backup power alongside your panels.
The calculation isn’t as simple as it was two years ago. It’s still a solid one for the right home.
If you’re in Connecticut and want to know what the numbers look like for your specific roof and utility situation, that’s what a free consultation is for. We work with homeowners across Fairfield, New Haven, Litchfield, and Hartford counties and can give you an honest picture of what to expect.
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