🔒Bill would create CT’s first community solar program, require battery storage

Lawmakers are proposing the state’s first community solar program, which would allow electric customers to subscribe to a shared solar or battery storage system and receive credits on their electric bills — without installing any equipment on their own property. House Bill 5471, introduced by the Energy and Technology Committee, would direct the Public Utilities Regulatory Authority to establish the program by Dec. 1, 2026, following a proceeding that must begin by Aug. 1, 2026. The program would run for three years and cap participation at 600 megawatts per year statewide. Under the measure, subscribers would be guaranteed to pay less for electricity than customers receiving standard service from their utility. Any electric customer, regardless of rate class, would be eligible to participate. The bill would allow private companies, municipalities and cooperatives to own and operate community renewable energy generating systems — essentially shared solar installations or battery storage facilities — and sell subscriptions to customers, who would receive bill credits based on their share of the system’s output through a mechanism called virtual net metering. Connecticut currently has no community solar framework. A distinctive feature of the proposal sets Connecticut apart from community solar programs in other states: the bill would require most systems to pair with a battery storage system at least 25% the size of the solar installation’s capacity, capable of discharging for a minimum of two hours. To encourage storage adoption, utilities would be required to pay operators a 5-cent-per-kilowatt-hour incentive for energy discharged during peak demand periods, provided the system dispatches at least 52 times per year during those periods. The storage requirement would be waived if a utility fails to approve interconnection within 90 days of a completed application, or if it requires the developer to pay for grid infrastructure upgrades as a condition of approval. Utilities would be required to offer a consolidated billing system for subscribers by Jan. 1, 2027. Individual subscribers would be capped at receiving credits for no more than 200% of their baseline annual electricity usage. The bill also includes protections for systems built during the program’s three-year run. If the program expires, utilities would still be required to support existing systems for 20 years or their useful life, whichever is longer — giving developers and subscribers long-term certainty even if the legislature does not renew the program. A PURA-led working group, which would also include the Department of Energy and Environmental Protection commissioner and the state’s consumer counsel, would study the program’s costs and benefits and report to the legislature by Jan. 1, 2029, with recommendations on whether to make it permanent. A separate provision of the bill, taking effect Oct. 1, 2027, would allow third-party electric suppliers to offer “guaranteed savings plans” — contracts promising customers lower rates than standard service. Residential customers could not be charged termination fees under such contracts. Community solar has expanded rapidly across the United States in recent years, with more than 20 states operating programs. Proponents say the model extends the benefits of solar energy to renters, low-income households and others who cannot install rooftop panels. The bill is set for a public hearing on March 12.