Connecticut’s Public Utilities Regulatory Authority (PURA) recently recommended the existing Residential Renewable Energy Solutions, Non-Residential Renewable Energy Solutions and Shared Clean Energy Facilities Programs not be continued in their current forms. The recommendations were included in a Draft Legislative Report to the General Assembly required as part of its examination of the current renewable energy tariff programs pursuant to Public Act No. 25-173, § 6.
In its Jan. 21, 2026 report, PURA proposed a unified eight-year program (to run from calendar year 2028 to 2035, following the expiration of the current renewable energy tariff programs) that will provide long-term market stability and maintain Connecticut’s clean energy deployment pace while also improving cost-effectiveness, grid-responsiveness and equity for all ratepayers (both participating customers and non-participating ratepayers).
Below are some key highlights of the proposed unified program:
- Residential Renewable Energy Solutions: PURA recommended reducing export compensation (below the full retail rate) to encourage load shifting and maximize onsite consumption, transitioning to instantaneous netting, retaining a “Buy-All” tariff option for low-income customers and Multifamily Affordable Housing customers, and incentivizing energy storage by encouraging customers to store energy for peak usage.
- Non-Residential Renewable Energy Solutions: PURA recommended the replacement of the competitive solicitation process with a “walk-up” approach (where projects are selected on a “first-ready” basis, e.g., upon meeting maturity requirements), the offering of standard-offer compensation rates (with adder compensation categories aligned with existing bid preference categories), and the transitioning to an annual budget cap (in lieu of a MW capacity limit) to better control ratepayer cost impacts. The “walk-up” approach would aim to provide financial certainty and encourage project deployment by setting compensation rates administratively rather than through competitive solicitations, which has led to speculative bidding and project attrition.
- Community Renewable Energy Program (Successor to Shared Clean Energy Facilities Programs): PURA recommended establishing a new program that would limit enrollment to low-income subscribers (prioritizing selection of those with outstanding arrearage balances), offer a slightly higher compensation rate than the NRES Program to expand access to solar subscriber credits and align project selection methodologies with the Non-Residential Renewable Energy Resources Program.
Additionally, PURA recommended the successor clean energy programs continue to be administered by the electric distribution companies, with the aid of the Clean Energy Ombudsperson to mediate disputes, resolve program interpretation questions and elevate unresolved issues to PURA, among others. The programs would also continue to limit eligibility to only Class I renewable technologies that do not emit pollutants and the programs would maintain a tariff length of 20 years.
In connection with the study, PURA also recommended that the legislature reinstate PURA’s authorization to develop a Front-of-the-Meter (FTM) storage program due to the critical importance of storage to the state’s energy, reliability and grid resilience policy goals, as well as the disparate treatment of Behind-the-Meter and FTM solar-plus-storage resources under current law. Reinstating PURA’s authority would also complement, rather than duplicate, the Department of Energy and Environmental Protection’s (DEEP) procurement authority by enabling smaller, distributed FTM storage projects not well-suited to large, centralized DEEP solicitations.
Lastly, PURA recommended the establishment of comprehensive licensing requirements for clean energy contractors and ongoing compliance auditing to ensure companies are adhering to program rules and applicable regulations and to protect ratepayers from predatory practices.
Interested stakeholders may submit comments on the Draft Legislative Report and PURA’s recommendations for successor renewable energy tariff programs by Feb. 4, 2026. A final report is anticipated to be issued on Feb. 27, 2026.
Harris Beach Murtha’s Energy Industry Team is tracking developments with this report and related Energy issues. If you have questions or concerns, please reach out to attorney Raquel Herrara-Soto at (203) 772-7736 and rherrerasoto@harrisbeachmurtha.com; attorney Daniel R. Canavan at 203-772-7749 and dcanavan@harrisbeachmurtha.com; attorney Bruce L. McDermott at (203) 772-7787 and bmcdermott@harrisbeachmurtha.com; or the Harris Beach Murtha attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
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