Southwest Connecticut isn’t the sunniest corner of the world. But with some of the highest grid electricity prices in the nation, solar panels can go a long way to reducing energy costs in Fairfield County, Connecticut.

In this article, we’ll explore the savings potential of solar panels in Fairfield County and some additional benefits of producing your own clean electricity. Let’s dive right with how much residents of Fairfield County can expect to save with solar panels.

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Solar panel savings in Fairfield County, CT

Energy cost savings is, in many cases, the primary motivation for installing solar panels. And in Fairfield County, the savings potential is well above average thanks to Connecticut’s extremely high grid electricity prices.

In January 2023, Connecticut had the fourth highest average retail electricity price in the US at 30.24 cents per kWh. For context, that’s nearly double the national average of 16.2 cents per kWh and triple the cost per kWh of electricity produced by an average solar system.

Now, let’s compare the cost of paying for grid electricity versus buying a solar system.

Let’s say you buy a 5 kW solar system for $25,000 that produces an average of 5,880 kWh of electricity per year. The incentives available to Eversource customers in Fairfield County would bring the cost of that system down to $13,760, as shown below.

Now, $13,760 is no small chunk of change, but it’s peanuts compared to buying the same amount of electricity from a utility provider over 20 years. The graph below shows the cumulative costs of paying for solar panels versus grid electricity.

• With a cash purchase, a homeowner in Fairfield County can expect a payback period of around 8 years and lifetime savings well over $30,000
• A 15-year solar loan would provide Day 1 savings since the monthly payments on this system would be lower than an average monthly utility bill. However, the interest payments on the loan would reduce the lifetime savings to around $25,000.

Either way, there is plenty of money to save with solar panels in Fairfield County.

Additional benefits of solar panels in Fairfield County

While everybody loves to save money, there are several additional benefits to having solar panels in Fairfield County.

Reduced carbon emissions

For instance, not only is Connecticut’s grid electricity expensive, it’s also quite carbon intensive. In January 2023, around 55% of the state’s electricity was generated from natural gas-fired power plants and just 2% was generated from nonhydroelectric renewable resources like wind and solar.

Natural gas has a carbon footprint around 12 times greater than rooftop solar. So, by installing solar panels, residents of Fairfield County can substantially reduce the carbon emission attributed to their electricity use, improve local air quality, and contribute to the clean energy transition.

Increased home value

In addition to providing energy cost savings, solar panels increase the value of your home. Studies by Zillow and the Berkeley Lab found that homes with solar panels sell faster and for more money than comparable homes without them.

Better yet, thanks to Connecticut’s solar property tax exemption, that additional value is tax-free. So, solar panels can both reduce your energy costs and add tax-free value to your home.

Backup power for grid outages

Power outages — due to extreme weather events and non-weather events — increased around 80% from 2000-2021. In fact, Connecticut had six outages that lasted four hours or more in 2022, including a 33-hour outage in late November.

Pairing solar panels with battery storage can provide clean, quiet, and reliable backup power for outage events and reduce your dependence on a utility provider. It’s important to note that solar-only systems are typically shut off automatically during grid outages to prevent the backflow of electricity from harming utility workers repairing the grid.

Are solar panels worth it in Fairfield County, CT?

Home solar is worth it for energy cost savings alone in Fairfield County, Connecticut. But the beauty of home solar is that it doesn’t matter if your primary motivation is cost savings, carbon emissions, or contributing to a more resilient power grid: Solar panels address all of these issues at once.

The key to a lucrative and long-lasting solar installation is working with a trusted installer with a proven track record of excellent workmanship and customer service in your area. Solar.com makes this easy by rigorously vetting the installers in our network.

Compare quotes from trusted local installers today.

Newark isn’t the sunniest place in the US by a long shot, yet it consistently ranks in the top 20 cities for Watts of solar capacity per capita. So, what makes solar panels so worth it in Newark?

While solar panels are typically associated with clean energy, they’re also a means to energy cost savings, energy independence, and increased home value. In this article, we’ll explore the five top reasons that solar panels are worth it in Newark, Jersey City, and the greater Tri-State Area.

Let’s dive right in with our first reason: New Jersey’s robust solar and battery incentives.

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1. Solar and battery incentives in Newark, New Jersey

What Newark lacks in sunshine, it makes up for with state and federal solar incentives. The incentives available in the Newark-Jersey City metro include:

• 30% federal solar tax credit
• The New Jersey Successor Solar Incentive (SuSI) program
• Sales and property tax exemptions for solar panels
• A strong net metering policy

Here’s an example of how the incentives available in Newark would reduce the cost of a 7 kW solar system with a gross price of $35,000.

Worth $85 per 1,000 kWh of solar production, the SuSI program is one of the most valuable solar incentives in the country — and it’s only available in New Jersey. Learn more about how SuSI works and how to claim this incentive here.

2. Newark’s high utility electricity rates fuel solar savings

In addition to robust incentives, Newark has another main ingredient for substantial solar savings: High grid electricity prices.

In February 2023, the average electricity price for the New York-Newark-Jersey City metro area rose 20% year-over-year to reach 23.7 cents per kWh. For comparison, the 7 kW solar system in the example above would produce electricity at just under 6 cents per kWh. Here’s how that looks over the 25-year warrantied life of the system.

Thanks to high grid prices and incentives, Newarkers powering their homes with solar panels can expect to save tens of thousands of dollars in energy costs.

• Paying cash maximizes the overall savings, but comes with a 7-8 year payback period
• Taking out a loan can produce Day 1 savings, but the interest payments eat into the overall savings

Either way, solar panels are well-worth it in Newark for the energy cost savings alone.

3. Home solar can clean up Newark’s electricity grid

In addition to being more affordable, solar panels produce electricity that is much cleaner than the local utility grid. In 2022, natural gas and petroleum-fired power plants generated over 45% of New Jersey’s electricity.

Electricity generated form natural gas has a carbon footprint around 12 times greater than electricity generated by rooftop solar. So, by installing solar panels, homeowners in Newark can substantially reduce the cost and carbon emissions of their electricity usage.

4. Solar and battery storage can provide backup power for grid outages

Another advantage of solar panels is that they can be paired with solar batteries to provide backup power for grid outages. Nationwide, power outages increased by 80% from 2000 to 2021, and are expected to continue increasing in frequency.

In 2020, New Jersey ranked 6th in the US for total power outage duration hours, with a total of 317 blackout hours. The state experienced two outages that lasted longer than 36 hours each and affected a total of 250,000 utility customers.

Together, solar panels and battery storage can typically power essential electrical systems like refrigeration, hot water, device charging, and Wi-fi for three days.

5. Solar panels increase home value

With the benefits of cost savings, emissions reductions, and backup power, it’s no surprise that solar panels also increase home value in Newark and across the US.

In fact, several studies have shown that homes with solar panels sell for more money the comparable homes without them. And, according to Zillow, the New York metro area (which includes Jersey City and Newark) is among that top locations to increase your home value by going solar.

This trend is likely to continue as grid electricity prices rise and younger, sustainably motivated generations make up a greater share of the housing market, which makes solar panels worth it even if you don’t plan to be in your home for the full life of the system.

Are solar panels worth it in Newark?

Solar panels are clearly worth it in Newark, NJ for energy costs savings alone. But the great thing about home solar is it doesn’t matter if your primary concern is cost savings, climate change, or power outages — solar panels can address all of these things at once.

Better yet, the robust solar incentives available in Newark significantly lower the cost barrier to enjoy these benefits.

Connect with an Energy Advisor to design a custom solar solution for your home.