2025 Connecticut Solar Incentives & Energy Storage Solutions: Tax Credits, Energy Storage, Home Battery & More

Transitioning to solar power and energy storage is an excellent way for Connecticut residents to reduce energy costs and increase energy independence. With various solar incentives, tax credits, and incentives and rebates available in Connecticut, installing a solar panel system has never been more beneficial. This guide explores the key Connecticut solar incentives and energy storage solutions for 2025, ensuring you maximize savings and efficiency.

Connecticut Solar Incentives & Energy Storage Solutions

What Energy Storage Incentives Are Available in Connecticut?

Connecticut homeowners have access to several energy storage incentives to reduce installation costs and increase energy resilience. These incentives come from state programs, federal tax credits, and utility-based incentives.

State Incentives

• Energy Storage Solutions Program – Administered by the Connecticut Green Bank, this program provides upfront incentives and performance-based payments for installing battery storage systems. Incentive amounts vary based on battery capacity and system performance.
• State Grants & Income-Based Incentives – Connecticut offers additional grants and rebates for qualifying homeowners, particularly for low-to-moderate-income households.

Federal Incentives

• Federal Investment Tax Credit (ITC) – Homeowners can deduct a percentage of the cost of their solar energy system and battery storage from their federal taxes. The exact percentage varies based on the year of installation.

Utility-Based Incentives

• Utility Incentives – Some Connecticut utility providers offer rebates for customers installing battery storage to help reduce grid demand. Homeowners should check with their local utility company (e.g., Eversource or United Illuminating) for eligibility and incentive amounts.

By leveraging these programs, homeowners can significantly lower the upfront cost of energy storage at their home, making energy storage solutions more affordable available in Connecticut.

Energy Storage Solutions Program: Connecticut’s New Battery Storage Incentive

The Energy Storage Solutions program provides homeowners with upfront incentives and rebates to install battery storage systems. This program helps reduce reliance on the grid and improves energy resilience during power outages. The program, administered by the Connecticut Green Bank, offers financial support based on the size and capacity of the battery storage system and ongoing performance incentives.

Connecticut Tax Credit & Additional Incentives for Battery Storage

Those investing in battery storage may qualify for a tax credit and additional incentives. The federal solar tax credit allows a portion of installation costs to be deducted from federal taxes, and Connecticut offers its own energy credit, income-based incentive, and upfront incentive programs. These benefits make solar battery storage more accessible.

2025 CT Solar Incentives, Tax Credits, Rebates & Exemptions

Federal Investment Tax Credit (ITC) for Solar Power & Home Battery Storage

The federal investment tax credit (ITC) provides a deduction for a percentage of solar power system costs, including home battery storage. Homeowners can also benefit from the investment tax credit, ensuring further savings on solar battery storage and battery installation.

Connecticut Net Metering & Solar Installation Buyback Plans

Homeowners who install solar panels can benefit from Connecticut’s Residential Renewable Energy Solutions (RRES) program, which replaced the previous net metering structure in 2022. Under this program, homeowners can sell excess solar energy back to utilities through a per kWh tariff rate.

The program offers two options: a Buy-All Tariff, where homeowners sell all generated power at a fixed rate, and a Netting Tariff, which compensates homeowners for surplus electricity while allowing them to use their generated energy first. The netting incentive rate ensures fair compensation for generated power. While these policies have evolved, CT solar users can still access valuable incentives for selling surplus energy.

As of 2025, Connecticut’s net metering policies no longer follow traditional one-to-one compensation. Instead, homeowners must choose between the tariff options, with rates set by the Connecticut Public Utilities Regulatory Authority (PURA). The transition aligns with state efforts to modernize the grid and encourage sustainable energy practices. Before committing to a plan, homeowners should check with their utility provider for the latest compensation rates and eligibility criteria.

Connecticut Solar Sales Tax Exemption for Homeowners

A solar sales tax exemption is available for homeowners purchasing a solar panel system. This exemption eliminates sales tax on eligible solar installation costs, reducing the total price of installing solar panels.

Connecticut Solar Property Tax Credit for Residential Renewable Energy Solutions

Adding a solar energy system can increase home value, but Connecticut offers a solar property tax exemption to ensure homeowners with residential renewable energy solutions aren’t penalized. This incentive makes adopting solar in Connecticut a smart financial decision.

Finding the Right Solar Installer in Connecticut

How to Choose a Qualified Solar Panel Installer?

Selecting a skilled solar panel installer is crucial for a successful solar installation. Look for experienced installers certified by organizations like NABCEP and check customer reviews. To simplify the process, consider using DroneQuote, a trusted platform that connects homeowners with top-rated solar companies. With DroneQuote, you can compare quotes, verify installer credentials, and ensure a seamless transition to solar power.

Connecticut Installation: What Homeowners Should Know?

A Connecticut installation involves planning, permitting, and working with a professional solar installer. Homeowners should be aware of available solar incentives and seek affordable solar solutions to maximize savings.

FAQ

How Much Does It Cost to Add a Home Battery to an Existing Solar System?

The cost of adding a home battery to an existing solar system varies based on several factors, including battery size, brand, installer fees, and available incentives. On average, homeowners can expect to pay between $10,000 and $20,000 before incentives.

Factors That Affect Home Battery Costs:

• Battery Capacity – Larger batteries (e.g., 10 kWh+) cost more but provide longer backup power.
• Brand & Technology – Premium brands like Tesla Powerwall or LG Chem tend to be more expensive.
• Installation Complexity – Retrofitting a battery into an existing solar system may require additional electrical work, affecting costs.
• Available Incentives –
  • Federal Investment Tax Credit (ITC) – Reduces total installation costs by a percentage (varies by year).
  • Energy Storage Solutions Program – Offers upfront incentives and performance-based payments to offset costs.
  • Utility Rebates – Some utility providers, like Eversource, may offer additional savings for customers installing battery storage.

By taking advantage of state, federal, and utility-based incentives, homeowners can significantly lower the cost of a battery and make energy storage more affordable.

Do Solar Batteries Qualify for a Tax Credit in Connecticut?

Yes, solar batteries qualify for the federal tax credit and some state-specific programs. Those who install energy storage in solar in Connecticut can benefit from energy storage solutions and incentives to install batteries.

By How Much Does Residential Solar Increase Home Value?

Installing residential solar can boost home value by around 4%. Buyers recognize the benefits of clean energy, and homes with solar panels sell faster. Thanks to the solar incentives available, homeowners can recoup their investment more quickly.

Can You Claim the Solar Tax Credit Twice in CT & Benefit from Incentives and Rebates?

The solar tax credit can’t be claimed twice for the same system, but upgrades or expansions may qualify for incentives and rebates. The matching payment program and additional income-based incentive programs help reduce costs further.

Conclusion

With strong Connecticut solar incentives, tax credits, and energy storage solutions, 2025 is a great time to go solar. Programs like the Energy Storage Solutions program and residential solar installation incentives provide excellent savings opportunities. Whether installing solar panels or integrating battery storage, Connecticut homeowners can achieve energy independence while maximizing their financial benefits. Additionally, energize Connecticut and other home energy solutions offer additional ways to cut energy costs. If you already have solar, these programs can still provide value by helping optimize your solar pv system and energy efficiency strategies.