Renewable Energy Growth Program

December 08, 2022

Summary

In 2014, H.B. 7727 created the Renewable Energy Growth (REG) program with the goal to promote installation of grid connected renewable energy within the load zones of electric distribution companies at a reasonable cost. This tariff-based incentive program is designed to finance the development, construction, and operation of renewable energy distributed generation projects through competitive bidding processes over five years to achieve specific megawatt (MW) targets. This program is implemented by the utilities under supervision and review of the Public Utilities Commission (PUC).

For the period of at least five years, the EDCs shall file tariffs with the PUC that are designed to provide multi-year performance-based incentives to eligible renewable distributed generation projects. Tariffs shall be developed by the utilities and will be reviewed and approved by the PUC. Proposed tariffs shall include a ceiling price and term lengths of 15 to 20 years. After being approved by the PUC, the terms under the tariffs are not to be altered in any way that would undermine the reliance of those tariffs. 

Program Goal

The REG program originally had a target install total of 160 MW of distributed renewable energy during its five-year term from 2015-2020. The first year of the program (2015) has an annual target of 25 MW, 40 MW for second year, 40 MW for third and fourth year, and rest of the 160 MW for the fifth year. There is also an annual target of at least 3 MW for small scale solar projects for first 4 years of the program. In 2017, S.B. 112A extended the program to the end of 2029, and increased the annual target to 40 MW per year, with a total cumulative procurement of 400 MW of renewable energy between 2020 and 2029.

Program Description

The Small-Scale Solar Program provides incentives for systems up to 25 KW and are designed for residential and small business owners. Applicants can enroll via the interconnection application to receive a standard performance-based incentive for the period of years in an applicable tariff. The incentives depend on the size and ownership of the system, and the duration of the contract term. The incentives will be provided on a first come, first served basis until the program reaches its capacity target.

The PUC has approved the solar incentive for National Grid for 2022. Incentive amounts are listed in the table below.

Renewable Energy Class (Nameplate kW)	Annual Enrollment Target (Nameplate MW)	Ceiling Price/Standard PBI (cents/kWh)
Small-Scale Solar  (1-15 kW DC)	6.95	31.05 (15-yr Tariff)
Small-Scale Solar (>15-25 kW DC)		27.55 (20-yr Tariff)

Applications for projects in all renewable energy classes are accepted in the Third Open Enrollment. The program also has a capacity target of 1.476 MW for commercial-scale solar carports and 0.005 MW for large-scale solar carports.

H.B. 8534 enacted on July 2016 added a virtual net metering Shared Solar Facilities program as the part of the Renewable Energy Growth program. The program seeks to facilitate solar adoption in multifamily, campuses, multi-structure, business parks, multi-tenant, multi-owner commercial facilities, and public entities with multiple accounts. The program will be available for adoption after the PUC approves the program tariff submitted by the utility.