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Connecticut

Connecticut

Incentives/Policies for Renewables & Efficiency

Printable Version
Net Metering   

Last DSIRE Review: 07/26/2013
Program Overview:
State: Connecticut
Incentive Type: Net Metering
Eligible Efficiency Technologies: CHP/Cogeneration, Heat recovery, Unspecified Technologies
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Fuel Cells, Municipal Solid Waste, CHP/Cogeneration, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Multi-Family Residential, Agricultural, Institutional
Applicable Utilities:Investor-owned utilities
System Capacity Limit:Standard net metering: 2 MW
Virtual net metering: 3 MW
Aggregate Capacity Limit:No limit specified
Net Excess Generation:Carried over as a kWh credit for one year; Reimbursed to customer at the avoided cost of wholesale power at the end of the year (March 31).
REC Ownership:Customer owns RECs
Meter Aggregation:Yes (virtual net metering allowed for municipal, state, or agricultural customers)
Web Site: http://www.ctenergyinfo.com/dpuc_net_metering.htm
Authority 1:
Date Enacted:
Date Effective:
H.B. 6706
06/19/2013
07/01/2013
Authority 2:
Date Enacted:
Date Effective:
Conn. Gen. Stat. § 16-243h
1998 (subsequently amended)
7/1/1998
Authority 3:
Date Enacted:
Date Effective:
Conn. Gen. Stat. § 16-244u
07/01/2011
07/01/2011
Authority 4:
Date Enacted:
H.B. 6360
6/21/2013
Summary:

Connecticut's two investor-owned utilities -- Connecticut Light and Power Company (CL&P) and United Illuminating Company (UI) -- are required to provide net metering to customers that generate electricity using "Class I" renewable-energy resources, 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." (See specific utility rate tariffs for details).

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.

*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.

 


 
Contact:
  Mark Quinlan
Public Utilities Regulatory Authority
10 Franklin Square
New Britain, CT 06051
Phone: (860) 827-1553
E-Mail: mark.quinlan@po.state.ct.us
Web Site: http://www.ct.gov/dpuc/site/default.asp
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.