A new proposal for a community solar program in Connecticut drew strong opposition from utilities and state agencies this week, as environmental groups rallied behind it.
House Bill 5471, which received a public hearing Thursday before the General Assembly’s Energy and Technology Committee, would direct the Public Utilities Regulatory Authority to establish a shared clean energy program by Dec. 1, 2026.
The program would allow private companies, municipalities and cooperatives to build and operate solar installations or battery storage facilities and sell subscriptions to electric customers.
Subscribers would receive credits on their utility bills without needing to install any equipment on their property.
The state’s current Shared Clean Energy Facility program is only available to low-to-moderate income households, and is capped at 50 megawatts per year. It compensates projects at roughly 13 cents per kilowatt-hour.
Under H.B. 5471, the new program would be open to all electric customers, with no requirement to prioritize low-income subscribers. However, opponents worry that the new cap of 600 megawatts per year — 12 times the current level — would cost too much money.
Also, it would require utilities to credit subscribers at 80% of the full retail rate, which the Department of Energy and Environmental Protection (DEEP) estimates at 23 to 27 cents per kilowatt-hour.
Eversource Energy filed testimony projecting the program would generate more than $300 million in annual net costs, adding over $6 billion to standard service costs over 20 years.
United Illuminating echoed those figures, warning costs would be absorbed entirely by standard service customers rather than spread across all ratepayers — a structure both utilities said could trigger a “death spiral” that would push customers toward other suppliers, leaving fewer to cover the same costs.
DEEP went further, estimating the program could cost $13 billion over 20 years. Commissioner Katie Dykes called the bill duplicative of the existing program and warned the benefits could flow to wealthier customers and businesses rather than those who need them most.
The Office of Consumer Counsel also opposed the bill, raising concerns about weak consumer protections and a provision that would allow the program to function solely through the purchase of out-of-state renewable energy credits without building any new generation.
Environmental organizations including Save the Sound and The Nature Conservancy testified in support of the bill, arguing community solar would extend clean energy access to renters, condo owners and households that cannot install rooftop panels. More than 20 states already operate such programs.
Note: This article has been updated to reflect additional testimony.
