storage incentives

Connecticut energy storage rebates and incentives

If you’re a homeowner in CT, you’re probably very familiar with the state’s harsh winters: frequent nor’easters have many people across New England looking for ways to keep their homes up and running during powerful storms. Fortunately, solar batteries can do just that! Thanks to declining costs, federal tax credits, and–for customers of Eversource–utility incentives, solar batteries are more affordable in CT than ever before.

The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand.

What storage incentives are available in Connecticut?

As of September 2020, Connecticut does not have any statewide energy storage incentives. However, Eversource offers a particularly attractive incentive to its customers installing batteries in the state:

ConnectedSolutions program

The ConnectedSolutions Program, available to Eversource customers, is a demand response program that pays you an annual incentive in exchange for allowing your utility company to access and use electricity you store in your battery during times of peak energy demand.

In CT, you can receive $225 per kW during the summer events (i.e. times when they pull electricity from the battery) and $50 per kW during the winter events. Plus, you don’t have to worry about Eversource constantly draining your battery of energy: program participants experience a maximum of 60 events during the summer, and 5 events during the winter. A single event can last no longer than 3 hours.

Your overall incentive benefit will depend on the number of events per year and how much power your solar battery can provide, but according to Eversource, “A typical home battery could contribute an average of 5 kW per event. This would earn $1,125 for the summer season and $250 for the winter season.”

Connecticut tax benefits for energy storage

Fortunately, you don’t need to be a customer of any specific utility company to take advantage of the federal investment tax credit (ITC).

The federal investment tax credit (ITC)

With the federal investment tax credit (ITC), you can claim up to 30 percent of the cost of your solar battery as a credit towards your federal taxes. For most homeowners, the ITC can help decrease the cost of a battery by an additional $3,000 to $4,000.

Importantly, standalone storage is not currently eligible for this credit – but it will be starting in 2023 thanks to the Inflation Reduction Act! To claim this incentive for the remainder of 2022, you need to charge your battery with an on-site renewable energy source (like rooftop solar). If you have a residential solar panel system and you charge your battery with electricity from the grid, you cannot take advantage of this credit right now.

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