Eversource Net Metering Rules in Connecticut: What You Need to Know
If you are a homeowner in Connecticut looking into solar, "Net Metering" is the most important concept you need to understand. It is the mechanism that determines how much money your solar panels actually save you.
What is Net Metering?
Solar panels generate power while the sun is shining. But most households use the bulk of their electricity in the evening or early morning. This means your panels will overproduce power during the day, and underproduce power at night.
Net Metering is the billing arrangement with your utility company (like Eversource or UI). When your panels produce more power than your home is currently using, the excess electricity is pushed back onto the grid. Eversource credits your account for that electricity. At night, you pull power from the grid, using those credits. You only pay for the "net" difference.
Connecticut's Current Net Metering Policy
Connecticut has transitioned from traditional "Net Metering" to a new program called the Residential Renewable Energy Solutions (RRES) program. Fortunately, under the RRES program, Eversource still offers a netting structure that acts very similarly to 1-to-1 net metering.
The Two Tariff Options:
Under the RRES program, homeowners can choose between two compensation structures. The vast majority of homeowners choose the Netting Tariff.
- Buy-All Tariff: You sell 100% of the power your panels generate directly to Eversource at a fixed rate, and you buy 100% of the power your home uses from Eversource at the retail rate. This is rarely beneficial for standard residential homes.
- Netting Tariff: (Recommended) Your home uses the solar power first. Any excess is sent to the grid, and Eversource credits you at the full retail rate. These credits roll over month to month.
Do Solar Credits Roll Over in CT?
Yes! Under the Netting Tariff, if you generate more electricity in the summer than you use (which is very common), those excess credits are banked on your Eversource account. You can then use those banked credits during the winter months when the sun sets at 4:30 PM and your panels aren't producing as much.
The Annual True-Up
At the end of the annual billing cycle (usually March 31st), if you still have excess credits remaining on your account, Eversource will cash you out. However, they cash you out at the "wholesale" rate (which is much lower than the retail rate). This is why properly sizing your system to offset 100% of your usage — but not 150% — is critical to maximizing your ROI.
How Eversource Rates Impact Your ROI
Eversource and UI charge some of the highest electricity rates in the continental United States. While this is painful when paying your utility bill, it is actually a massive advantage when going solar.
Because Eversource's retail rate is so high, every kilowatt-hour (kWh) of solar energy you produce is worth significantly more in Connecticut than it would be in Texas or Florida. This drastically shortens the payback period of a solar installation in CT.
Start Building Your Bank of Credits
Navigating Eversource's interconnection rules and the RRES program can be complex, but CT Solar Installation handles the entire process for you. From securing your tariff agreement to managing town permits, we ensure your system is properly sized to maximize your net metering benefits.