The Public Utilities Regulatory Authority (PURA) in Connecticut has replaced the state’s net metering policy for home solar buyers with Residential Renewable Energy Solutions (RES) program. Under the RES program, residents can either sell all their solar power to the utility company (buy all tariff), or just the unutilized solar power (netting tariff).
The netting tariff shares many similarities with its predecessor, the net metering system, albeit with some new benefits for the homeowners. Here are some common questions homeowners ask us about the new incentive.
Who is Eligible for Netting Tariff Incentive?
Currently, customers of Eversource are eligible for the netting tariff incentive in Durham, CT. You should also be a family with 1 to 4 members and must have applied for interconnection on or after January 1, 2022.
For additional information on eligibility, such as energy assessment requirements, income eligibility, and so on, you can refer to Eversource website.
Is there a Maximum Limit on Solar System Size to Qualify for a Netting Tariff?
Yes, there’s a blanket cap of 25 kW on system sizes to be eligible for the netting tariff. However, the actual system size limit will vary on a case-by-case basis due to additional limits.
For instance, the expected annual production of your system must not exceed your current yearly power consumption by more than 5 percent. This is calculated for any 12-month period over the past 5 years. The only exception is if you have planned the addition of 2 electric vehicles and a whole-home heat pump to your household, in which case, a provision will be made for their power needs.
How Do I Receive Payments Under the Netting Tariff Arrangement?
When you subscribe to a netting tariff arrangement under the RES program, you get paid the same price for your solar energy as the utility company charges you for their power. In fact, your monthly power bill will reflect this.
To clarify, suppose you supplied 1 kWh of solar power to the grid during a month. The dollar equivalent of 1 kWh of power calculated at your utility company’s retail power price will be reflected in your power bill and subtracted from the bill amount.
Additionally, Eversource customers are eligible for an exclusive benefit. They earn renewable energy certificates for producing solar power. They are rewarded with 1 REC every time they produce 1 kWh of solar power, and they can see these RECs to Eversource at a fixed price of $31.8 apiece. The cash payments for the RECs are made to the customers every quarter, unlike the netting tariff payments, which are generally made as credits in monthly power bills.
Can I Convert My Netting Tariff Credits Into Hard Cash?
Yes, you can!
When you feed more power to the utility company than what you consume from them, your net monthly consumption will be in the negative and carried over to the next month. These credits can roll over indefinitely from month to month. They do not expire either. Thankfully, you can convert these credits into cash when you close your account with your utility company.