New Law Reauthorizes Renewable Energy Incentives That Were Soon Set To Expire, Ensuring That Solar Energy and Battery Storage Have a Renewed Focus on Affordability
HARTFORD, CT – Governor Ned Lamont today announced that he has signed into law Public Act 26-127, which contains several initiatives to make renewable energy—including solar energy and battery storage—an accessible and affordable option for homeowners,
“As we transition to a cleaner energy future, we must make sure that every family, especially those struggling with high utility bills, can share the benefits,” Governor Lamont said. “This act delivers meaningful value to ratepayers and streamlines residential solar permitting. We need more non-gas energy sources to help bring costs down, and this bill represents another major step forward in building an energy landscape that is affordable, resilient, clean, and built for the long term.”
The act reauthorizes Connecticut’s existing residential, commercial, and community solar energy programs—which were set to expire in 2027—through 2035, enabling these incentives to continue supporting the transition to renewable energy at a time when energy demand is growing and electric affordability remains a central concern for households and employers. Federal incentives for rooftop solar panels expired last year.
Additionally, the act directs the development of successor programs with clear cost controls and targets that continue the expansion of renewable energy without placing the open-ended costs on ratepayers. It also focuses future program benefits on customers and communities with higher energy burdens, supports battery storage as a tool for grid reliability, and advances more consistent residential solar and storage permitting so projects can move forward more efficiently while maintaining important safety protections and siting considerations. The act also allows for support of responsible solar growth by prioritizing development of solar on rooftops, brownfields, municipal and state buildings, and other commercial spaces. The bill also requires that the Connecticut Public Utilities Regulatory Authority prioritize benefits to ratepayers by ensuring that the public benefits charge is limited and the net impact of the bill is a reduction.
The legislation’s approval was led in the General Assembly by State Senator Norm Needleman (D-Essex) and State Representative Jonathan Steinberg (D-Westport), co-chairs of the Energy and Technology Committee.
“Solar power plays a critical role in supporting power generation in our state, and we need strategies allowing us to thread the needle in moving forward in expanding its adoption while managing its costs,” Senator Needleman said. “This legislation will provide us with guideposts to make the right decision and ensure renewable power can continue to benefit our state without significantly impacting consumer bills.”
“This legislation assures that solar power will remain a critical contributor to the state's energy future,” Representative Steinberg said. “The new law redoubles our commitment to clean, renewable energy while recognizing the growing importance of pairing solar with battery storage to enhance reliability and timely dispatch when needed most.”
The act is being hailed by state officials and clean energy advocates as a major win for Connecticut’s renewable energy future.
Emma Cimino, acting commissioner of the Connecticut Department of Energy and Environmental Protection, said, “Public Act 26-127 strengthens the foundation of Connecticut’s clean energy transition by giving residents, businesses, and communities clearer pathways to access affordable, reliable renewable power. These updates have the potential to deliver real benefits for ratepayers while also supporting responsible growth of solar and storage and slashing residential solar permitting timelines. We look forward to working with the Public Utilities Regulatory Authority and stakeholders across the state to implement these programs in a way that advances both energy affordability and long‑term system reliability.”
Bryan Garcia, president and CEO of the Connecticut Green Bank, said, “The signing of this bill extends the opportunities for our families, businesses, and communities to benefit from the deployment of solar throughout Connecticut. When paired with solar, battery storage helps reduce electricity rates for all ratepayers by reducing peak energy demand and improving the resilience of the grid.”
Charles Rothenberger, director of government relations for Save the Sound, said, “We are delighted that Governor Lamont is ensuring that Connecticut’s residents continue to benefit from clean, renewable energy. The benefits of solar, in particular, were made abundantly clear as we entered the recent holiday weekend heatwave. As temperature approached 97 degrees and people fired up their air conditioning units, rooftop solar systems were shaving more than 6.3 megawatts off the regional electricity grid’s load, a demand reduction of 25%. As a result, the region was able to avoid purchasing power from the most polluting, and most expensive, fossil-fueled peaker plants. This can save ratepayers more $8 million dollars in a single afternoon, in addition to the avoided adverse health and environmental impacts.”
Connor Yakaitis, deputy director of the Connecticut League of Conservation Voters, said, “At a time when Connecticut residents remain concerned about the cost of utilities, this action reinforces our state’s commitment to expanding renewable energy, lowering long-term energy costs, and building a more resilient electric grid. In signing this bill, the governor marks an important milestone in Connecticut’s continued transition to a cleaner, more affordable energy future. By preserving critical cost-saving programs for residential, commercial, and community solar, the state is providing the certainty needed for families, businesses, and the clean energy industry to continue investing in solar energy. While more work remains to make energy more affordable and achieve our state’s clean energy goals, today’s action provides a strong foundation for continued progress. We want to thank Governor Lamont, Senator Needleman and Representative Steinberg, along with legislative leaders and stakeholders for advancing policies that deliver cleaner, more reliable, and more affordable energy for communities across Connecticut.”
Nick Josefowitz, CEO of Permit Power, a national energy affordability nonprofit, said, “This bill includes important provisions that will make it cheaper and easier for Connecticut families to install home solar and batteries and save money on their utility bills. Connecticut is the first state in New England to automate permitting for home solar and battery projects, reducing costly and unnecessary red tape. This bill also makes it easier for families to buy a small plug-in solar system that they can install as easily as a toaster to save money on their electricity bills.”
To learn more about Connecticut’s arrangement of renewable energy programs, visit portal.ct.gov/pura/electric/office-of-technical-and-regulatory-analysis/clean-energy-programs/new-clean-energy-programs.
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