Connecticut solar incentives, tax credits, and rebates in 2025

Payback periods and long-term savings

One of the reasons going solar in Connecticut makes a lot of sense is the relatively short payback period for system installation cost, thanks to the combination of federal and state incentives and high electricity costs. As we noted above, the final upfront cost for a typical 6 kW system after factoring in federal and state tax incentives is around $11,457.

Calculating the payback period

Connecticut has some of the highest electricity rates in the country, averaging around $0.24 per kWh. A 6-kW solar system in Connecticut on average produces about 7,200 kWh annually. This translates to:

7,200 kWh/year X $0.24/kWh = $1,728/year in savings.

$11,457 / $1,728 ≈ 6.6 years

So, in roughly 6.6 years, your system will be paid off.

Long-term savings

After the system has paid for itself, the remaining lifespan of the system (approximately 18+ years) is pure savings. Over 25 years, homeowners can save tens of thousands of dollars in electricity costs (in this example, it's over $43,000!), even accounting for a small annual degradation in system efficiency (around 0.5% per year), which will likely be offset by expected increases in electricity rates.