Net Metering

Program Net Metering
Category Regulatory Policy
Implementing sector State
Last Update
State Connecticut
Technologies Solar Thermal Electric, Solar Photovoltaics
Sectors Residential

NOTE: In May 2018, S.B. 9 signed into law and made significant changes to the state's Renewable Portfolio Standard and Net Metering policies. The law ends net metering to new customers when the Residential Solar Investment Program ends on January 1, 2022. The existing net metering customers will be grandfathered until December 2039. Starting January 1, 2022, new customers will be able to select a buy-all, sell-all option, or net billing option under the new Net-Tariff program. The Public Utilities Regulator Authority (PURA) has finished implementing the new program as the Residential Renewable Energy Solutions Program.

Connecticut’s two investor-owned electric distribution companies (EDCs): The Connecticut Light and Power Company dba Eversource Energy (Eversource) and The United Illuminating Company (UI), are required by the act to offer two new kinds of tariffs to new customers who own Class I renewable energy sources, which include solar, wind, landfill gas, fuel cells, sustainable biomass, ocean-thermal power, wave or tidal power, low-emission advanced renewable-energy conversion technologies, and hydropower facilities up to two megawatts (MW) in capacity.

There is no stated limit on the aggregate capacity of net-metered systems in a utility's service territory. Any net excess generation (NEG) during a monthly billing period is carried over to the following month as a kilowatt-hour (kWh) credit for one year. At the end of the year (March 31), the utility pays the customer for any remaining NEG at the "avoided cost of wholesale power."

Residential Renewable Energy Solutions offers new residential solar installations, those installed after January 1st, 2022 the opportunity to sell the energy and renewable energy certificates (RECs) at a fixed 20-year price by selecting one of two incentive rate structures: 1) Buy-all or 2) Netting. Under the Buy-All incentive rate structure, Eversource or UI will purchase all the energy and Renewable Energy Certificates (RECs) generated by the qualified project. Under the Netting incentive rate structure Eversource or UI will purchase all RECs generated by the qualified project, and in addition, will provide monetary on-bill credits on the customer’s electric bill for any energy exported to the electric grid and not consumed on-site. Customers who installed solar before December 31st, 2021, and were on LREC or ZREC contracts will maintain their net metering contract until 2039.

Based on PURAs Interim Decision, the below incentive rates will be in effect for eligible Applications received beginning January 1, 2022.

Buy-All Rate $/kWh Netting Rates $/kWh
Incentive Rate REC Rate
Eversource $0.2943 Customer’s Retail Rate $0.0318
UI $0.2943 Customer’s Retail Rate $0.0000
Low-Income Adder $0.025
Distressed Municipality Adder $0.0125

Qualified Projects serving Customers who have incomes 60% or below of State Median Income are
eligible to receive an additional $0.025 per net kWh for the Low-Income Adder. Projects located in Economically
Distressed Municipalities ( listed here ) are eligible to receive an additional incentive of $0.0125 per net kWh. Qualified Systems are only eligible for one adder and cannot receive both adders. Adders must be applied for during the application process and cannot be added or removed later if a customer’s income status changes. Adders are applied to net generation at the Production Meter for both the Buy-All Tariff and netting Tariff.

Customers are locked into their rate for 20 years. The Buy-All and Netting rates are reviewed for changes annually, but these changes only affect new customers; a customer will keep the rate of their entry year for the entirety of the 20-year contract. New customers can enroll through 2027. Residential customers that choose the Netting option must also pay a non-bypassable charge; the 2022 rates are 1.585¢ per kWh for Eversource and 1.720¢ per kWh for UI.

Virtual Net Metering

Connecticut allows virtual net metering for state, municipal, and agricultural customers.  A virtual net metering facility, must generate electricity using either Class I or Class III* resources from facilities of up to 3 MW.  Systems can be owned by the customer, leased by the customers, or owned by a third-party on a customer's property. The system may serve the electricity needs of the municipal host customer and additional beneficial accounts as long as the beneficial accounts and host account are within the same electric distribution company's service territory. A municipal or state customer can host up to 5 additional municipal or state accounts, and 5 additional non-state or -municipal buildings if those accounts are critical facilities** and connected to a microgrid. An agricultural customer can host up to 10 beneficial accounts as long as those accounts either use electricity for agricultural purposes, or are municipal or noncommercial critical facilities. In addition, all virtual net metering hosts can aggregate all of the meters owned by that customer host.

If a host customer produces more electricity than it consumes, the excess electricity will be credited to the beneficial accounts for the next billing period at the retail rate against the generation service component and a declining percentage of the transmission and distribution charges that are billed to the beneficial accounts. The declining percentages are as follows:

  • First year of commercial operation: 80% of transmission and distribution charges
  • Second year of commercial operation: 60% of transmission and distribution charges
  • Third year of commercial operation and after: 40% of transmission and distribution charges.

Excess credits rollover monthly for one year. The electric distribution company is to compensate the municipal or state host customer for excess virtual net metering credits remaining at the end of the calendar, if any, at the retail generation rate and the above declining percentage of transmission and distribution charges. HB 5496 enacted on June 2016 requires that the virtual net metering facilities must be operational within 18 months from the date Department of Energy and Environmental Protection (DEEP) issues final permit.

*Class III resources are defined as "the electricity output from combined heat and power systems with an operating efficiency level of no less than fifty per cent that are part of customer-side distributed resources developed at commercial and industrial facilities in this state on or after January 1, 2006, a waste heat recovery system installed on or after April 1, 2007, that produces electrical or thermal energy by capturing preexisting waste heat or pressure from industrial or commercial processes, or the electricity savings created in this state from conservation and load management programs begun on or after January 1, 2006."

**Critical Facilities are defined as a hospital, police station, fire station, water treatment plant, sewage treatment plant, public shelter, correctional facility, production and transmission facilities of a television or radio station, commercial area of a municipality, municipal center, or any other area identified by the Department of Energy and Environmental Protection as critical.


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