The entire state of Connecticut had a net metering policy for residential solar buyers until the end of 2021. However, starting in 2022, the net metering incentive has been replaced with a new program called Renewable Energy Solutions (RES) program, which builds upon the net metering arrangement and improves it in ways that make solar power affordable to more households. Now, Durham residents can take advantage of this new program to enjoy greater convenience and savings.
Here are some of the basics of the program that every Durham homeowner must know.
What is the Renewable Energy Solutions Program?
The RES program effectively replaces the erstwhile net metering policy with a more equitable and attractive incentive scheme. In fact, the program offers all solar buyers a choice between two tariffs – Netting Tariff and Buy-all Tariff – which are designed to stimulate 50 to 60 MW of solar installations by homeowners each year.
The program adds another incentive on top of these tariffs to residents in state-identified “distressed municipalities,” to make solar more affordable to them.
An exciting provision of the RES program is that it allows solar buyers to install a solar system that anticipates their future needs, such as the addition of up to two electric vehicles. Previously, the net metering policy demanded that the installed capacity be based only on the residents’ current power requirements, making it difficult for them to meet their evolving power requirements.
Netting Tariff vs. Buy-All Tariff
Netting tariff allows solar owners to divert unused solar energy generated during the daytime to the grid, and earn monetary credits on it. The credits are calculated at the retail power rate you are being charged for every kWh of power. Subsequently, the monthly power bill for using the utility company’s power during nighttime when there’s no sun will be offset by these monetary credits. If your monetary credits exceed the monthly power bill, they roll over to the following months indefinitely.
Besides the monetary credits, netting tariff customers of Eversource will also receive an additional incentive determined by the total solar power generated by their system. The incentive does not differentiate between the power you use and the power you feed the grid, as it’s designed to be a replacement for renewable energy credits.
The other option, the buy-all tariff, allows you to send all the solar energy you generate directly to the grid, and receive a monthly payment that’s calculated at a fixed rate per kWh. This option is better suited for solar PPA or solar lease vendors.
Both netting tariff and buy-all tariff contracts lock in the customer for a period of 20 years. So, make your decision after a thorough review of savings, earnings, and terms & conditions involved.
Guarantee Your Incentives
Yes, the net metering incentive will continue to survive in Durham, CT, in some form, but it will be slightly different from what it was before.
This time, however, you can lock in your incentives for 20 years, so there’s no uncertainty regarding the future of your savings.