Cost of Going Solar in Connecticut

Cost of Going Solar in Connecticut 2025

For a typical residential system in Connecticut sized at around 9 kW, which aligns with the annual energy use of a mid-sized home, the average total system cost in 2025 is about $27,000 to $28,000 before incentives. After applying the 30% federal Investment Tax Credit (ITC), the net cost to the homeowner falls to approximately $19,000 to $20,000. These figures reflect the full solar cost, including hardware and solar soft costs but exclude additional state or utility rebates.

Because the ITC remains available through the end of 2025, now is one of the most favorable times to invest in solar. Once the tax credit expires or declines, the cost of solar panels will effectively rise by 30%, meaning a system that costs about $19,500 after incentives would increase to nearly $28,000 without the ITC. This change could extend the payback period by several years and reduce long-term savings.

Solar Cost Basics

A solar installation’s total price consists of two major components: hardware costs and solar soft costs. Hardware includes all tangible equipment needed to produce and store energy, while soft costs cover administrative, labor, and other non-equipment expenses.

Hardware Costs

Hardware usually represents 55–60% of the total project cost. The main hardware components include:

Solar panels: Roughly 25% to 30% of total cost, depending on efficiency and brand
Inverters: About 10% of the total; microinverters and optimizers cost more but improve performance on shaded roofs
Racking and mounting: Around 5% to 8%, varying with roof structure and materials
Wiring and electrical components: About 3% to 5% of total system cost
Solar batteries: Adding a home battery storage system can increase overall price by 25% to 35%, depending on the number and capacity of solar batteries installed

Solar Soft Costs

Solar soft costs account for 40% to 45% of total installation expenses and include the services that bring the system from design to operation.

Labor and installation: Typically 15–20%. Connecticut’s higher labor rates make this portion slightly above the national average
Permitting and inspection fees: Around 2% to 5%, varying by municipality
Design and engineering: Roughly 3% to 5%, depending on the roof layout and electrical system
Sales, marketing, and overhead: Around 8% to 10%, reflecting installer operating costs
Profit margin: Usually 5% to 8%, covering business overhead and warranty support

These components combine to determine the total solar power cost, which can fluctuate widely based on home type, installer, roof orientation, and location within the state.

How Much Do Solar Panels Cost in Connecticut in 2025?

The solar panel cost in Connecticut averages $2.70 to $2.80 per watt in 2025, slightly higher than the national average due to labor and permitting expenses in the Northeast. For a standard 5 kW system, homeowners can expect a total pre-incentive cost of around $13,500 to $14,000, while a larger 10 kW system typically costs $26,000 to $28,000 before incentives.

System size significantly affects overall cost. Larger systems benefit from economies of scale, lowering the per-watt price. Conversely, smaller systems, such as those installed on limited roof space, have higher per-watt costs because fixed overhead spreads across fewer panels.

Panel type also influences pricing:

Monocrystalline panels: Most efficient (20–22%) and long-lasting, but carry a premium price
Polycrystalline panels: Slightly less efficient (16–18%) but lower cost, suitable for large rooftops
Thin-film panels: Lightweight and flexible, but less efficient and more suited to commercial applications

With Connecticut’s mix of sunny and cloudy days, high-efficiency monocrystalline modules are often preferred to maximize output in limited roof space.

Average Cost of Solar Batteries Cost in Connecticut

Adding solar batteries increases the system’s flexibility and independence from the grid. The cost of solar batteries in Connecticut typically ranges from $1,000 to $1,300 per kilowatt-hour (kWh) of capacity. For a solar battery bank sized at 10 kWh, homeowners can expect an additional $10,000 to $13,000 in total project costs.

The final solar batteries cost depends on several factors:

Battery type: Lithium-ion models (especially lithium iron phosphate) are more expensive but have longer lifespans and higher efficiency than lead-acid alternatives
Storage capacity: Higher-capacity systems cost more but provide greater energy autonomy
Installation complexity: Backup or hybrid systems require additional inverters and switches, increasing labor costs

Integrating home battery storage offers protection against outages, particularly valuable during storms or in remote areas. Although it raises upfront cost, pairing batteries with solar can reduce reliance on grid electricity and allow time-shifting of power use for greater long-term savings.

How to Lower Solar Cost in Connecticut

Residents can take advantage of multiple programs and policies that lower the solar cost of installation and operation.

Federal Investment Tax Credit (ITC)

The federal 30% ITC remains the single most impactful incentive for Connecticut homeowners. It applies to the full system cost, including solar panels, inverters, wiring, racking, and solar battery systems installed before the end of 2025. The ITC reduces the homeowner’s tax liability by 30% of total project expense, dramatically improving payback time.

State and Local Incentives

Connecticut offers several state-level incentives that complement the federal credit:

Sales tax exemption: Solar energy equipment is exempt from the state’s 6.35% sales tax, immediately reducing the upfront cost
Property tax exemption: The added home value from a solar installation does not increase property taxes
Utility-based programs: Residents served by utilities such as Eversource and United Illuminating can qualify for incentive programs that pay per kilowatt-hour of solar energy exported to the grid, typically locked in for up to 20 years

Together, these programs reduce the overall solar panel cost and help homeowners achieve faster financial returns.

Paying for Solar Installation in Connecticut

Homeowners can choose among several financing paths to make solar energy more affordable.

Cash Purchase: Paying upfront eliminates interest and maximizes savings. Homeowners receive the full ITC benefit and own the system outright. This option suits those seeking the quickest payback, often within 6 to 8 years
Solar Loan: Spreads the cost over time, typically 5 to 15 years, with interest rates often below 5%. The homeowner retains ownership and receives all tax benefits while making manageable monthly payments
Solar Lease: A third party owns the system; the homeowner pays a fixed monthly fee for its use. This option requires little or no upfront payment but provides smaller long-term savings
Power Purchase Agreement (PPA): Similar to a lease, but payments are based on actual energy produced. Homeowners lock in predictable rates that are usually lower than utility prices, providing savings without ownership responsibilities

Each option helps balance the solar power cost with personal financial preferences, enabling broader access to renewable energy.

How Much Money Can I Save by Going Solar in Connecticut?

Connecticut’s high retail electricity rates make solar particularly cost-effective. With average residential electricity prices near 29 cents per kWh, a 9 kW solar system producing around 10,000 kWh annually can save homeowners roughly $2,800 to $3,000 each year on electric bills.

With an average post-incentive system cost of about $19,500, the typical payback period is 6 to 7 years. After that, the system generates free electricity for the remainder of its 25 to 30-year life span. Over that time, homeowners may accumulate $80,000 to $100,000 or more in total savings, depending on rate inflation and system performance.

Those who integrate solar batteries may see a slightly longer payback period, but they gain added energy independence and protection during outages. For Connecticut residents seeking long-term savings and stable energy costs, investing in solar remains one of the most financially sound home improvements available.