Connecticut Utility Guide | Palmetto Help Center
Connecticut Utility Guide
Net Metering with a Solar Production Charge
April 3, 2026
Top Takeaways
- 1-to-1 Net Metering
- Solar Production Charge of 4 cents per kWh for 20 years
- Energy Storage Solutions incentives available for batteries
History of Net Metering
Connecticut has a long history of offering favorable net metering policies and incentive programs. The following applies to Eversource Energy & United Illuminating Company (UI) as other municipal utilities in CT determine their own policies. The original net metering program ended on January 1, 2022 with existing solar customers grandfathered until 2040. The current program is under Residential Renewable Energy Solutions (RRES).
Residential Renewable Energy Solutions (RRES) has two options for solar customers: 1) Netting Tariff or 2) Buy-All. The Buy-All option may be discontinued soon as less than 1% of solar homes have selected it. Palmetto customers are on the Netting Tariff.
Netting Tariff
The Netting Tariff continues the 1-to-1 net metering policy. Excess solar production is credited at the same retail rate the utility charges per kWh. The main difference from the pre-2022 program is there can be a Solar Production Charge -- called a Solar Energy Adjustment on Eversource bills. The charge is on total solar production produced for 20 years as measured from a production meter.
The Solar Production Charge, or "Solar Energy Adjustment," rate depends on the year the RRES application is submitted to the utility regardless of when it's approved. Applications are typically submitted before the system installation. Customers are locked into the rate at the time the solar application is submitted for 20 years.
Year the RRES application is submitted:
- 2026 - $0.0402 per kWh charge
- 2025 - $0.005 per kWh charge
- 2024 - no charge or credit
- 2022 & 2023 - Eversource customers have a $0.03 credit instead of a charge
Solar Production Charge
New solar Netting Tariff applications submitted in 2026 will be charged $0.04 per kWh produced every month for 20 years.
For example, a system producing 600 kWh in a month will be charged $24.12.
Monthly Billing
Your utility bill will show the following:
- Fixed Monthly Charge $9-13 per month
- Solar Production Charge (called Solar Energy Adjustment in Eversource)
- Delivery Charges (if net usage is > 0 kWh)
- Net Supply Credit (if net usage is < 0 kWh)
If you produce more than you consume in a month, you will see the credits appear as a Net Supply Credit. Net Usage is kWh from the utility - kWh sent to the utility. The rate credited for Net Usage or Net Supply is at the total retail rate per kWh the utility charges you and fluctuates slightly each month.
The Net Supply Credit can apply to all charges on your electric even the Fixed Monthly Charge and Solar Production Charge making a $0 Amount Due possible.
Any excess credits (negative account credits) will carry forward month to month and year to year to apply to future charges. Many solar customers produce excess credits in spring through fall months and later use them in the winter to offset charges while solar production is lower.
Eversource Sample NEM Bill
Energy Storage Incentives
The Connecticut Energy Storage Solutions (ESS) Program is a voluntary energy battery storage incentive program offered to customers of Eversource Energy and The United Illuminating Company (UI). The ESS Program is administered by the Connecticut Green Bank in partnership with Eversource and UI.
ESS Program Options
The Program consists of two incentive offerings referred to as 'Active Dispatch' or 'Passive Dispatch.' Participation in the ESS Program is completely voluntary for Palmetto customers.
- Passive Dispatch is an Upfront Incentive with mandatory participation in pre-scheduled summer events during weekdays (anticipated 5pm-8pm June-August)
- Active Dispatch is a Performance Based Incentive managed by Eversource and UI with optional participation in unplanned events throughout the year. Active customers only get paid from the utility for participating (estimated 30-60 events in the summer, and 1-5 in winter) when peak demand is high on the grid.
Palmetto customers with storage interested in participating can choose to:
a) Enroll in both Active & Passive Dispatch (full participation) b) Participate Active Only c) not enroll at all
| Passive Dispatch Option Upfront Incentive |
Active Dispatch Option Performance Based Incentive |
| Summary: Enrolled customers receive an upfront discount for 10 years of mandatory participation each summer. Key Details: - Contractor/ Installer provides participating customer an upfront discount - Discount amount is based on system size in kWh - Contractor/ Installer enrolls customer - Mandatory participation once enrolled - Incentive clawback for underperformance - 10 year term - Pre-scheduled participation events: Monday-Friday, June-August from 5-8pm ET - Utilities can dispatch up to 80% of the stored energy leaving at least 20% for reserve |
Summary: Enrolled customers receive two annual payments for 10 years based on average annual performance in voluntary events. Key Details: - Utility pays customer directly twice per year - Payment based on average kW performance over summer and winter seasons - Customer can enroll directly at any time; the process varies by battery manufacturer. - Voluntary participation once enrolled, more performance = higher payments - No underperformance penalties - 10 year term - Events called by utility based on grid needs |
ESS Program Incentive Values
Passive Dispatch values went into effect August 2025, and are scheduled to decline as more applications are reserved. View current incentive rates on the program's reporting page
| Passive Dispatch | Active Dispatch |
| Standard customers: $212.50/kWh* upfront one time (last updated November 2025) Higher incentive values exist for qualified Underserved Communities or Low to Moderate Income account holders. |
Summer: $200/kW (Years 1-5), and then $115/kW (Years 6-10) Winter: $25/kW (Years 1-5), and then $15/kW (Years 6-10) |
Sample Incentive Calculation
Based on current incentive values (last updated Nov 2025), a standard customer that installed a 13.5 kWh storage system with an average Active Dispatch performance of 3 kW per event season could expect:
Passive: 13.5 kWh * $212.50/kWh = $2,868 upfront, plus
Active: (3kW * $200/kW) + (3kW * $25/kW) = $675 (Year 1) or ~ $5,000 (10 year term)
| Battery Provider | Model | Nameplate Capacity | Estimated Discount per unit |
| Tesla | Powerwall 3 | 13.5 kWh | $2,868 |
| Enphase | IQ Battery 3T | 3.5 kWh | $743 |
| Enphase | IQ Battery 5P | 5.0 kWh | $1,062 |
| Enphase | IQ Battery 10T | 10.5 kWh | $2,231 |
| SolarEdge | Home Battery 10k | 9.7 kWh | $2,061 |
| Schneider | Boost - BAT10K1 | 10.56 kWh | $2,244 |
Learn more at https://energystoragect.com/
Work with an Approved Contractor https://energystoragect.com/eligible-contractors/
Frequently Asked Questions
What is the Incentive enrollment process?
A) Fully enrolled customers (Passive & Active):
- An Approved Contractor is required to submit an application on behalf of the customer
- Enrollment through online application portal
B) Active Only customers (no upfront discount):
- Customer can self enroll their system at any time
- Customers should contact their battery manufacturer for specific enrollment process. Typically done through the battery manufacturer's app or online customer account.
- An application through the Program's online application portal is not required for Active Only
What is the difference between Passive and Active Dispatch?
Passive dispatch will discharge up to 80% of your battery automatically on weekdays in June, July, and August from 5-8PM. You are required to opt-in to passive dispatch to receive the up-front discount on your home battery.
Active dispatch events are in addition to passive events. The utilities can call up to 60 events each summer and 5 events each winter. The utilities will pay customers directly after each season. Payments are based on average participation over the season measured in kWs.
The dispatch events time windows are different for each option.
Should I enroll in both options or active only?
This decision should be made by each customer. Full enrollment customers will have mandatory obligations under the Passive Dispatch option, but will receive an upfront discount. Full enrollment customers may maximize their savings potential by participating in both options.
Customers enrolled in active only are not required to respond to any events. Events are entirely optional, with compensation based on average participation over the season. This offers customers greater flexibility, however, potentially lower savings potential.
Who will receive each incentive?
Passive Dispatch incentives are paid by the program directly to Approved Contractors who pass through incentives to customers via an upfront discount.
Active dispatch incentives are paid from the utilities directly to customers after each season.
Who applies for each incentive option?
- Fully enrolled customers (Passive & Active) are enrolled by their Approved Contractor.
- Active only customers can self-enroll at any time through their battery manufacturer's process, which is usually through their mobile app.
How long do I have to participate?
Fully enrolled customers (Passive & Active) are required to participate for a 10 year term to avoid penalties (clawbacks) of the upfront, passive incentive.
Active only customers are also enrolled for a 10 year term, but participation remains optional with customers receiving no compensation for not participating.
Is unenrollment allowed?
Un-enrollment is permitted. Fully enrolled customers may be subject to penalties (clawbacks) of the upfront discount. Active only customers will not have any penalties for un-enrolling.
Do standalone storage systems qualify if I do not have solar?
Yes, storage systems without solar qualify. However, If enrolling a standalone system, there may be additional electric costs incurred as it will always charge from the grid at retail and any excess exported energy is not compensated through a tariff as it may when paired with solar.