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General Assembly Substitute Bill No. 7087
January Session, 2025
AN ACT CONCERNING COMMUNITY SOLAR ENERGY GENERATING
SYSTEMS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section 1
and section 2 of this act: 2
(1) "Authority" means the Public Utilities Regulatory Authority; 3
(2) "Baseline annual usage" means (A) a subscriber's accumulated 4
electricity use in kilowatt–hours for the twelve months before the 5
subscriber's most recent subscription, or (B) for a subscriber that does 6
not have a record of twelve months of electricity use at the time of the 7
subscriber's most recent subscription, an estimate of the subscriber's 8
accumulated twelve months of electricity use in kilowatt–hours, 9
determined in a manner approved by the authority; 10
(3) "Community solar energy generating system" means a solar 11
photovoltaic system, with or without a connected energy storage 12
system, that (A) is located in the state or in the territory of the regional 13
independent system operator, as defined in section 16-1 of the general 14
statutes, (B) is connected to the electric meter of more than one 15
subscriber or is a separate facility with its own electric meter, (C) credits 16
such system's generated electricity, or the value of such system's 17 Substitute Bill No. 7087
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generated electricity, to the bills of the subscribers to such system 18
through virtual net energy metering, (D) has at least two subscribers, (E) 19
does not have any individual subscriber that constitutes more than sixty 20
per cent of such system's subscriptions, and (F) is owned by any person 21
or entity that is not an electric distribution company; 22
(4) "Electric distribution company" has the same meaning as 23
provided in section 16-1 of the general statutes; 24
(5) "Electric supplier" has the same meaning as provided in section 25
16-1 of the general statutes; 26
(6) "Program" means the community solar energy generating systems 27
pilot program; 28
(7) "Subscriber" means a retail customer of an electric distribution 29
company that (A) holds a subscription to a community solar energy 30
generating system, and (B) has identified one or more individual meters 31
or accounts to which the subscription shall be attributed; 32
(8) "Subscriber organization" means (A) a person that owns or 33
operates a community solar energy generating system, or (B) the 34
collective group of subscribers of a community solar energy generating 35
system; 36
(9) "Subscription" means the portion of the electricity generated by a 37
community solar energy generating system that is credited to a 38
subscriber; 39
(10) "Unsubscribed energy" means any community solar energy 40
generating system output in kilowatt–hours that is not allocated to any 41
subscriber; and 42
(11) "Virtual net energy metering" means the measurement of the 43
difference between the kilowatt–hours or value of electricity that is 44
supplied by an electric company and the kilowatt–hours or value of 45
electricity attributable to a subscription to a community solar energy 46
generating system that is fed back to the electric grid over a subscriber's 47 Substitute Bill No. 7087
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billing period. 48
(b) On or before December 1, 2025, the Public Utilities Regulatory 49
Authority shall initiate a proceeding to establish a community solar 50
energy generating systems pilot program. The program shall comply 51
with the following: 52
(1) All electric customer rate classes shall be eligible to participate in 53
the program; 54
(2) Subscribers receiving standard service, as described in section 16-55
244c of the general statutes, and subscribers served by an electric 56
supplier may hold subscriptions to the same community solar energy 57
generating system; 58
(3) A subscriber organization shall (A) determine how to allocate 59
subscriptions to subscribers, and (B) notify each electric distribution 60
company or electricity supplier that provides services to its subscribers 61
about the regulations the authority adopts under subsection (c) of this 62
section; 63
(4) An electric distribution company shall use the tariff structure 64
adopted under subsection (c) of this section to provide each subscriber 65
with the credits calculated by a subscriber organization; 66
(5) A subscriber may not receive credit for virtual net energy 67
metering excess generation that exceeds two hundred per cent of the 68
subscriber's baseline annual usage; 69
(6) A subscriber organization may sell to an electric distribution 70
company any unsubscribed energy generated by a community solar 71
energy generating system under such company's process for purchasing 72
the output from qualifying facilities at the amount such energy would 73
cost to procure on the electric market in the state. A subscriber 74
organization may transfer any unsubscribed or overproduced energy 75
credits not sold to an electric distribution company to the Connecticut 76
Green Bank pursuant to the program established pursuant to section 2 77 Substitute Bill No. 7087
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of this act; 78
(7) An electric distribution company shall offer a subscriber 79
organization the option to utilize a consolidated billing mechanism 80
whereby the electric distribution company administers billing credits or 81
charges for subscribers concerning the operations of the community 82
solar energy generating system; 83
(8) An electric distribution company shall use energy generated from 84
a community solar energy generating system to offset purchases from 85
wholesale electricity suppliers for standard service; 86
(9) Any costs associated with small generator interconnection 87
standards approved or adopted by the authority shall be paid by the 88
subscriber organization; 89
(10) A subscriber organization may petition an electric distribution 90
company to coordinate the interconnection and commencement of 91
operations of a community solar energy generating system after the 92
authority adopts regulations required under subsection (c) of this 93
section; 94
(11) A subscriber organization may contract with a third party for the 95
financing, construction, ownership or operation of a community solar 96
energy generating system; 97
(12) A municipal electric utility or cooperative utility may participate 98
in such program; and 99
(13) The authority shall limit such program to a total nameplate 100
capacity rating of six hundred megawatts in the aggregate. 101
(c) Not later than February 1, 2026, the authority shall adopt 102
regulations, in accordance with the provisions of chapter 54 of the 103
general statutes, to implement the provisions of this section, including 104
regulations establishing (1) consumer protections for electric customers, 105
(2) a tariff structure for a subscriber organization or an electric 106
distribution company to provide a subscriber with the kilowatt–hours 107 Substitute Bill No. 7087
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or value of the subscriber's subscription at the retail rate for electricity 108
in the state, (3) a calculation for virtual net energy metering determined 109
by the authority, (4) a protocol for electric distribution companies, 110
electricity suppliers and subscriber organizations to communicate the 111
information necessary to calculate and provide monthly electric bill 112
credits and any yearly net excess generation payments required by this 113
section, and (5) a protocol for a subscriber organization to coordinate 114
with an electric distribution company for the interconnection of a 115
community solar energy generating system with the distribution grid 116
operated by such company and the commencement of operations of 117
such system. 118
(d) Any contract relating to a community solar energy generating 119
system or subscriber organization executed during the program shall 120
not be affected by the termination of such program. 121
(e) After such program terminates, (1) a subscriber organization may 122
continue the operation of a community solar energy generating system 123
that began operation during the program, including the creation and 124
trading of subscriptions, and (2) each electric distribution company shall 125
continue to facilitate the operation of a community solar energy 126
generating system that began operation during the program, in 127
accordance with the program requirements and regulations adopted by 128
the authority pursuant to this section. 129
(f) A subscriber organization may submit content to be posted on the 130
Internet web site of the Energy Conservation Management Board, 131
established pursuant to section 16-245m of the general statutes, to 132
inform customers of an electric distribution company of potential offers 133
and subscriptions provided by such organization, including offers or 134
subscriptions that may be used by such customers in combination with 135
electric supply offers from other sources. Each electric distribution 136
company shall place a message on each customer electric bill informing 137
such customer how to subscribe to a community solar energy generating 138
system and information concerning offers on the Energy Conservation 139
Management Board's Internet web site. 140 Substitute Bill No. 7087
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Sec. 2. (NEW) (Effective October 1, 2025) The Connecticut Green Bank, 141
created pursuant to section 16-245n of the general statutes, in 142
consultation with the Commissioner of Energy and Environmental 143
Protection, shall establish and administer a program to be known as the 144
"community solar energy credit sale program". Under such program, a 145
subscriber organization may transfer any unsubscribed or 146
overproduced energy credits held by such organization to the 147
Connecticut Green Bank for sale by the bank. Upon transfer, such 148
energy credits shall be owned by the bank until sold or otherwise 149
disposed of by the bank. The purchase price of such energy credits 150
received by the bank from a subscriber organization shall be determined 151
by the bank. Upon the sale of any such energy credit by the bank, the 152
purchase price of such energy credit, less a reasonable administrative 153
fee determined by the bank in consultation with the commissioner, shall 154
be remitted to the subscriber organization. 155
Sec. 3. (Effective October 1, 2025) (a) There is established a working 156
group to study the value and costs of the pilot program established 157
pursuant to section 1 of this act and make recommendations to the 158
Public Utilities Regulatory Authority on the advisability of establishing 159
a permanent program. Such working group shall consist of (1) the 160
chairperson of the Public Utilities Regulatory Authority, or the 161
chairperson's designee, (2) the Commissioner of Energy and 162
Environmental Protection, or the commissioner's designee, (3) the 163
Consumer Counsel, or the Consumer Counsel's designee, and (4) such 164
other persons as the chairperson of the Public Utilities Regulatory 165
Authority believes may serve to accomplish the purpose of the working 166
group. 167
(b) All initial appointments to the working group shall be made not 168
later than July 1, 2026. Any vacancy shall be filled by the chairperson of 169
the Public Utilities Regulatory Authority. The chairperson of the Public 170
Utilities Regulatory Authority shall serve as chairperson of the working 171
group and shall schedule the first meeting of the working group, which 172
shall be held not later than October 1, 2026. 173 Substitute Bill No. 7087
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(c) In conducting the study, the working group shall identify and 174
examine (1) a framework for valuation of the costs and benefits related 175
to community solar and virtual net energy metering, (2) the costs and 176
benefits of community solar energy generating systems to participating 177
subscribers and to nonsubscriber ratepayers, (3) an appropriate credit 178
mechanism and operational structure that allows a community 179
renewable solar energy generating system to minimize administrative 180
costs to an electric company, electric supplier or subscriber 181
organization, (4) the benefits to and the technical and cost impacts of 182
community solar programs and virtual net energy metering on an 183
electric company's distribution grid, (5) issues, benefits and concerns 184
related to the participation of electric companies, including investor–185
owned utilities, in community solar programs and projects, including 186
owners and operators of the projects, (6) whether and how community 187
solar projects or virtual net energy metering have a substantially 188
different technical impact on the distribution system than traditional net 189
energy metering, (7) any impacts of the program on the standard offer 190
service procurement process, (8) community solar programs and cost–191
benefit studies in other states, (9) whether and how community solar 192
programs can help reduce the cost of compliance with the renewable 193
energy portfolio standard, (10) how community solar energy generating 194
systems can impact locational marginal prices in the state, (11) the 195
impacts of the pilot program on energy costs, reliability and equitable 196
cost allocation for ratepayers, (12) how community solar project 197
developers can increase participation by low and moderate–income 198
retail electric customers in community solar projects, (13) the progress 199
of the community solar energy generating pilot program established 200
pursuant to section 1 of this act, in attracting low and moderate–income 201
retail electric customers, (14) whether community solar energy 202
generating systems are an overall net benefit in helping the state achieve 203
its distributed generation and renewable goals, and (15) any other 204
matters the working group considers relevant and appropriate. 205
(d) Not later than January 1, 2028, the chairperson of the Public 206
Utilities Regulatory Authority shall submit a report, in accordance with 207 Substitute Bill No. 7087
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the provisions of section 11-4a of the general statutes, to the joint 208
standing committee of the General Assembly having cognizance of 209
matters relating to energy and technology. Such report shall include an 210
analysis of the factors identified in subsection (c) of this section. The 211
working group shall terminate on the date that it submits such report or 212
January 1, 2028, whichever is later. 213
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 New section
Sec. 2 October 1, 2025 New section
Sec. 3 October 1, 2025 New section
Statement of Legislative Commissioners:
Section 1(a)(3)(E) was rewritten for clarity; in Section 1(b)(6), "by" was
changed to "pursuant to" for accuracy; in Section 1(c)(1), "electric
consumer protections" was changed to "consumer protections for
electric customers" for clarity; in Section 3(c)(7), "identification of" was
deleted and "of the program" was added after "impacts" for clarity and
grammar; in Section 3(c)(8), "a review of" was deleted for grammar.
ET Joint Favorable Subst.