Hartford Business Journal

HARTFORDBUSINESS.COM | FEBRUARY 9, 2026 11 another in Plymouth approved Jan. 8, was accelerated to meet the federal deadline, Dobbins said. The state Siting Council has seen a spike in activity tied to the solar push, receiving about a dozen petitions for new projects in July and August 2025 alone, according to Executive Director Melanie Bachman. The council's Jan. 8 meeting agenda included six commercial solar projects ranging from 0.97 MW to 4.65 MW. Beyond Connecticut, Verogy has nearly 200 projects in its national pipeline, Dobbins said. State responds Even as federal incentives wind down, Connecticut is continuing to back solar development as part of its long-term energy strategy. The state has a goal of becoming carbon free by 2040, but most of its electricity still comes from natural gas (about 60%) and nuclear power (roughly 33%), according to the U.S. Energy Information Administration. Solar accounts for only about 4% of in-state generation. Against that backdrop, state regula- tors are adjusting the timeline for the Non-Residential Renewable Energy Solutions Program, or NRES, to help businesses pursuing projects ahead of the July federal deadline. The program provides a key state incentive: 20-year utility contracts awarded through a state-run procurement program, under which Eversource and United Illuminating agree to buy electricity and renewable energy credits from approved solar projects at fixed prices. That long-term, predictable revenue stream helps make projects financially viable. In a Dec. 17 decision, the Public Utilities Regulatory Authority directed Eversource and United Illuminating to offer the entire 2026 NRES solic- itation in a single February procure- ment round — instead of splitting it between February and August as in past years — aligning the state incentive schedule more closely with the federal tax-credit deadline. Eversource's 2026 allocation includes 80 MW for small, medium and large zero-emission projects, plus an additional 20 MW for school solar projects. Companies do not need to participate in NRES to build solar or claim federal tax credits, but many pursue both to strengthen project economics. Solar developers supported the compressed procurement window, but Trahan said it creates another layer of complexity for businesses. "Winning developer bidders will have to move quickly for what may be twice the number of projects," Trahan said. "Otherwise their customers will miss out on the federal tax credit." To further offset the reduced federal support, PURA also increased the maximum prices utilities can pay for solar power under NRES by roughly 25% to 37% over 2025 levels. Small projects of up to 200 KW can receive as much as $250.42 per megawatt-hour, medium projects up to 1 MW can receive up to $236.74, and larger projects up to 5 MW can receive up to $182.94. Businesses that miss the February procurement will have future opportunities, as the state plans to continue the NRES program in 2026. Looking beyond the tax credit Developers say losing the ITC will raise costs in the short term, but not by the credit's full 30% value. "It's not like projects are going to get 30% more expensive," said Fidel of Earthlight Technologies. Fidel, who has worked in solar for 17 years, said returns today — even without the tax credit — are stronger than when she entered the industry, largely because Connecticut utility rates have climbed. "Businesses have to protect themselves against those utility rate increases," she said. Fidel added that financing could become simpler in a "post-ITC" market, as projects may no longer require complex tax-equity partnerships that match investors seeking tax credits with system owners. "Solar finance transactions get so much simpler when you don't have to put tax equity partnerships together, and you don't even think about the tax side of things," Fidel said. "I do think that over time, it simplifies solar transactions tremendously to not have to rely on the ITC." She noted that the cost of solar continues to fall relative to grid elec- tricity, strengthening the business case even without subsidies. Companies that initially looked to solar for environ- mental reasons increasingly find the economics stand on their own. "While it seems like the sky is falling, the sky is not falling," Fidel said. "We still have access to the most powerful source of energy out there with solar." Earthlight Technologies is installing rooftop solar at Stonington's Harbor Heights Luxury Apartment Homes, a project affected by the pending expiration of a federal solar tax credit. 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