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Get a Free QuoteThe Non-Residential Renewable Energy Solutions (NRES) tariff is Connecticut's primary compensation mechanism for commercial solar. Created by Public Act 19-35 and implemented through PURA Docket 20-07-01, NRES replaced ZREC and LREC for new systems. Here is how the two tariff options, three size tiers, and PURA tranche cadence actually work in 2026 — and how to stack NRES with Section 48E, MACRS, Section 6418 transferability, and C-PACE.
Federal tax-credit context for 2026 commercial projects
Section 48E (Clean Electricity ITC) remains available: commercial solar that began construction on or before July 4, 2026 locked in the full timing pathway, and projects starting now still qualify but generally must be placed in service by December 31, 2027. Section 6418 transferability and Section 6417 elective pay allow monetization of the credit. The residential Section 25D credit expired December 31, 2025 and does not apply to commercial NRES projects.
NRES (Non-Residential Renewable Energy Solutions) is Connecticut's current 20-year tariff program for new commercial, industrial, municipal, and nonprofit solar projects. It was created by Public Act 19-35 and implemented through PURA Docket 20-07-01, and it replaced the earlier ZREC and LREC auction programs for systems enrolling in 2022 or later. Participants choose between two options at enrollment: Buy-All, where the utility purchases 100% of the output at a fixed $/kWh rate set at tranche clearing, or Netting, a bill-credit mechanism where only net exports are credited at the tariff rate. Projects enroll in one of three size tiers — Small (0 – 200 kW), Medium (200 kW – 1 MW), or Large (1 – 5 MW+) — with PURA releasing MW capacity in tranches and setting or clearing the applicable $/kWh each round. NRES stacks with Section 48E, MACRS, Section 6418 transferability, Section 6417 elective pay for tax-exempt hosts, and C-PACE financing.
The Non-Residential Renewable Energy Solutions tariff is the commercial counterpart to the residential RRES program. Both were created by the same legislative action — Connecticut Public Act 19-35, commonly called the Clean Energy Act — and both were implemented through PURA Docket 20-07-01 beginning in 2022. Together, RRES and NRES replaced the state's previous set of distinct programs: net metering for new residential systems, and the ZREC and LREC REC auctions for commercial systems.
The structural motivation for NRES was to move Connecticut commercial solar compensation away from an auction-based REC market toward a predictable 20-year tariff that better supports project financing, C-PACE underwriting, and tax-equity structures. ZREC and LREC contracts were 15-year REC purchases with auction-cleared prices; NRES offers a 20-year tariff with the same utility counterparties but simpler mechanics and a standardized Buy-All / Netting option structure.
Public Act 19-35 (2019 Clean Energy Act) directed PURA to establish successor tariffs for both residential and non-residential renewable generation.
Established the NRES framework — size tiers, Buy-All and Netting options, 20-year terms, and the tranche-based procurement cadence. Ongoing proceedings recalibrate rates.
New commercial projects no longer enroll in ZREC, LREC, or pre-2022 net metering. Existing contracts in those programs continue on their original terms until expiration.
Every NRES project selects either Buy-All or Netting at enrollment. The choice is effectively permanent for the 20-year term, and it has large implications for ownership structure, tax treatment, battery economics, and how the project interacts with retail-rate volatility. The matrix below captures the core mechanical differences.
| Feature | Buy-All | Netting |
|---|---|---|
| How it works | Utility purchases 100% of solar output at a fixed tariff rate; host pays standard retail for all consumption as if solar were not on-site | Solar powers the facility first; only net exports are credited at the tariff rate (bill-credit mechanism) |
| Who keeps the power | Utility (delivered to grid via revenue-grade meter) | Host consumes first, exports only surplus |
| Revenue mechanism | Cash payment from utility (monthly or quarterly) | Bill credit that offsets electric bill |
| Metering | Separate revenue-grade production meter feeds the grid | Bi-directional (net) meter measures imports vs exports |
| Rate behavior | Fixed $/kWh for the 20-year contract (set at tranche clearing) | Tariff-rate credit on exports; self-consumed kWh implicitly valued at avoided retail rate |
| Best for | Low-load sites, third-party PPAs, tax-exempt hosts paired with taxable owners, developers monetizing production | High-load facilities with strong daytime consumption (manufacturing, data centers, cold storage, refrigerated logistics) |
| Battery interaction | Minimal impact on tariff revenue; storage may still be useful for demand-charge management or resilience | Battery can meaningfully shift self-consumption and demand-charge savings, improving project IRR |
| Ownership structure | Common with third-party PPAs and tax-equity structures; decouples compensation from the host's retail bill | Natural fit for host-owned systems using cash, loan, or C-PACE financing |
| Tax credit interaction | Section 48E ITC typically claimed by the system owner (often a developer); host buys kWh via PPA | Section 48E claimed by the owner-host (or elective pay for tax-exempts via Section 6417) |
NRES segments projects into three size tiers with distinct procurement processes, interconnection requirements, and typical deal structures. The tier is usually self-evident from system nameplate, but edge cases — phased builds, multi-parcel sites, campus aggregation — can push a project across a boundary and should be modeled deliberately before tranche application.
Small commercial rooftops, main-street retail, municipal buildings
Utility Level 1/2 review; simpler interconnection study
Rooftop solar on warehouse, office, nonprofit, small manufacturer
Lowest administrative burden. Tariff mechanics are most analogous to residential RRES.
Industrial rooftops, multi-building campuses, large retail/logistics
Utility Level 3 study likely; may trigger distribution upgrades
Large rooftop solar + carport combinations, mid-size industrial load centers
Often the sweet spot for C-PACE-financed projects. Tranche pricing is typically distinct from Small and Large.
Ground-mount solar, brownfields, landfill caps, major C&I sites
Full interconnection study; may require substation upgrades, ISO-NE review
Greenfield ground-mount, community-scale carports, large industrial hosts
Pricing typically set through competitive solicitation for this tier. Longer development timelines (12 – 24 months) are the norm.
NRES rates are not a single static number. PURA releases MW capacity in tranches on a periodic cadence, and each tranche may clear at a different $/kWh as PURA recalibrates based on prior subscription levels, policy priorities, interconnection queue conditions, and cost-of-capital trends. For that reason, pricing figures quoted in older articles, out-of-date spreadsheets, or blog posts should never be used as the basis for a project financial model without confirmation.
Connecticut Public Utilities Regulatory Authority authorizes a block of MW capacity to be procured under NRES each program year, allocated across Small, Medium, and Large tiers.
Eversource CT and United Illuminating open application windows. Smaller tiers typically use posted rates, while larger tiers may run competitive solicitations with bid caps.
Each successful applicant locks in the tranche-specific $/kWh for the full 20-year tariff term. Rates vary tranche-to-tranche as PURA recalibrates based on market response and policy goals.
Cleared projects proceed to interconnection study, construction, and commissioning. Milestone and in-service deadlines are enforced, with security requirements on larger tiers.
Once the utility grants Permission to Operate (PTO), the 20-year NRES tariff clock starts. The locked-in rate applies for the full contract term regardless of future tranche pricing.
New projects enroll in NRES. Existing ZREC and LREC contracts continue unchanged. Virtual Net Metering (VNM) was not replaced by NRES — it remains available for specific host categories such as municipalities, state and federal agencies, and agricultural users under the CT General Statutes, and can coexist with NRES for qualifying projects.
| Program | Status | Mechanism | Eligibility Now | What Replaced It |
|---|---|---|---|---|
| NRES (current) | Active for new 2022+ commercial systems | 20-year tariff (Buy-All or Netting) at PURA-set tranche rates | New non-residential renewable projects on CT utility systems | Functions as the commercial successor to ZREC and LREC |
| ZREC (Zero Emission REC) | Closed to new enrollment — legacy contracts continue | 15-year REC contract auctions for zero-emission generation (mostly solar) | Existing ZREC contract holders remain on their original terms | Retired in favor of NRES under PA 19-35 and PURA Docket 20-07-01 |
| LREC (Low Emission REC) | Closed to new enrollment — legacy contracts continue | 15-year REC contract auctions for low-emission generation | Existing LREC contract holders remain on their original terms | Retired in favor of NRES under PA 19-35 and PURA Docket 20-07-01 |
| Virtual Net Metering (VNM) | Still available for municipal, agricultural, and state/federal hosts | Bill-credit share allocated across multiple meters on one account | Limited to specific host categories under CT General Statutes — not a general C&I replacement | Coexists with NRES; does not replace it for general commercial projects |
If your facility is already earning revenue from a ZREC or LREC contract, that contract runs to its original expiration date on its original pricing. A separate new project at the same site — an expansion, a carport, a battery addition with its own eligible generation — would typically enroll in NRES while leaving the existing contract undisturbed.
Both Eversource CT and UI administer NRES under the same PURA framework, so the tariff options, contract term, and size tiers are identical. The real differences show up in the underlying commercial retail rates (which matter heavily for Netting decisions), interconnection queue behavior, and the local distribution-system upgrades that can be triggered by Medium and Large tier projects.
| Feature | Eversource CT | United Illuminating |
|---|---|---|
| Service Territory | ~75% of CT (1.27M customers) | Southwest CT (~340K customers) |
| NRES Tariff Availability | Yes — Buy-All and Netting options | Yes — Buy-All and Netting options |
| Commercial Retail Rate (blended avg) | ~$0.22 – $0.28/kWh | ~$0.24 – $0.30/kWh |
| Netting Value to Host | Tied to Eversource CT retail class | Tied to UI retail class — generally higher avoided rate |
| Interconnection Queue Speed | 8 – 16 weeks for standard study (capacity-dependent) | 8 – 14 weeks for standard study (capacity-dependent) |
| Large-Tier Procurement | Competitive solicitation under PURA framework | Competitive solicitation under PURA framework |
| Metering Requirements | Revenue-grade production meter for Buy-All; net meter for Netting | Revenue-grade production meter for Buy-All; net meter for Netting |
The tariff choice should not be made by rule of thumb. These six drivers dominate the outcome for almost every NRES project. A defensible recommendation combines them into a site-specific financial model — not a generic spreadsheet.
High daytime load (manufacturing, data center, grocery, cold storage) favors Netting because self-consumed kWh are implicitly valued at retail. Low-load sites (vacant warehouses, seasonal use) favor Buy-All because the host cannot consume enough on-site to capture the full retail value.
Host-owned systems (cash, loan, C-PACE) usually pair with Netting. Third-party-owned systems (PPA, lease, tax equity) usually pair with Buy-All because the economic counterparties are the utility and the developer, not the host's electricity bill.
A taxable host with capacity to use the ITC and MACRS can own the system directly and lean into Netting. A tax-exempt host uses Section 6417 elective pay, which works cleanly with either option but often pairs with Buy-All under a PPA-style service agreement.
Buy-All locks a fixed $/kWh for 20 years — revenue is immune to retail-rate changes but cannot capture upside if electricity prices surge. Netting rides the retail rate: savings rise if retail rates rise, and compress if they fall.
If a battery will be deployed for demand-charge management or resilience, Netting usually captures more economic value because stored energy offsets on-site retail cost. Under Buy-All, the battery is valuable mainly for resilience and demand response rather than tariff optimization.
The Section 48E begin-construction safe harbor closed July 4, 2026, so new-start projects must be placed in service by December 31, 2027 — scheduling remains critical. NRES tranche timing must align with the §48E placed-in-service window; missing it changes the economics materially.
NRES is only one layer of the capital stack. A well-structured CT commercial solar project uses the tariff as contracted revenue and then adds federal tax credits, depreciation, tax-credit monetization, and low-cost financing on top. The layers below combine routinely — none of them are mutually exclusive with NRES.
How it works: 20-year fixed-price contract with Eversource CT or United Illuminating, set at tranche clearing
Note: Primary revenue layer for CT commercial solar. Choose Buy-All or Netting at enrollment.
How it works: The begin-construction window closed July 4, 2026; projects starting now must be placed in service by December 31, 2027. Prevailing-wage / apprenticeship requirements apply for projects ≥ 1 MW to access the full 30%.
Note: Domestic content, energy community, and low-income adders can stack to higher effective credit rates. See our prevailing-wage guide.
How it works: 5-year MACRS on 85% of depreciable basis (50% of ITC reduces basis). Bonus depreciation rules vary by placed-in-service year.
Note: Typically worth 20 – 28% of project cost in present value to taxable owners.
How it works: Taxable owners can sell all or part of Section 48E credits to an unrelated third party for cash. Reduces need for traditional tax equity on mid-market projects.
Note: Transfer price is typically 90 – 95 cents on the dollar in current markets. One-time, all-or-partial, cash-only transfer.
How it works: Available to tax-exempt entities — municipalities, nonprofits, tribes, public schools, co-ops — in lieu of ITC tax liability.
Note: Critical enabler for NRES projects on tax-exempt hosts that historically could not use ITC.
How it works: CT Green Bank C-PACE covers up to 100% of eligible project costs; repayment via property tax assessment over 15 – 25 years.
Note: Often the mechanism that makes NRES Netting cash-flow positive from year one for host-owned projects.
How it works: CT Green Bank may provide loan loss reserves, soft-cost support, or specific rebates for storage paired with solar.
Note: Availability rotates by program year — confirm current openings with Green Bank before modeling.
NRES tranche rates move over time, but federal incentives — particularly Section 48E at a 30% base plus adders, MACRS at roughly 20 – 28% of project cost in present value, and Section 6418 cash monetization at 90 – 95 cents on the dollar — typically account for more of the project economics than the tariff delta between Buy-All and Netting. A project that under-models the federal stack will reach the wrong tariff decision even with perfect NRES math.
NRES is not the only pathway to commercial solar in Connecticut. Third-party PPAs, direct ownership off-tariff, and tax-equity structures remain viable under specific conditions. The matrix below summarizes how each option allocates capital, revenue, tax benefits, and host risk.
| Option | Capex | Revenue | Tax Credits | Host Impact | Best When |
|---|---|---|---|---|---|
| NRES Buy-All | Developer or host | Fixed tariff rate for 20 years | Owner claims Section 48E + MACRS | Pays retail for 100% of consumption; receives tariff cash | Low-load site, third-party PPA, tax-exempt host paired with taxable developer |
| NRES Netting | Host (cash, loan, C-PACE) | Retail-offset savings + tariff credit on exports | Host claims Section 48E + MACRS (or 6417 elective pay) | Reduces electric bill directly; keeps all economic value | High-load site, host wants maximum equity in the project |
| Third-Party PPA (off-tariff) | Developer | Developer sells kWh to host at negotiated $/kWh | Developer claims Section 48E + MACRS | Pays PPA rate for on-site solar kWh, no capex | Host has no tax appetite and does not want to own; often layered on top of NRES Buy-All |
| Direct Ownership (off-tariff) | Host | Avoided retail cost only (no NRES tariff value) | Host claims Section 48E + MACRS | Full bill-offset savings; no tariff revenue stream | Only rational when NRES queues are full or site is ineligible — generally inferior to NRES Netting |
A typical CT commercial NRES project from first site visit to tariff start runs 9 – 18 months in the Small and Medium tiers and 12 – 24 months in the Large tier. Timing matters: the Section 48E begin-construction safe harbor closed July 4, 2026, so new starts must be placed in service by December 31, 2027 — a hard planning constraint that has to align with PURA tranche timing.
NuWatt models 12 – 24 months of interval data, maps roof or ground-mount capacity, and runs an initial NRES Buy-All vs Netting comparison for the specific site.
We model Section 48E, MACRS, Section 6418 transferability or 6417 elective pay, C-PACE or balance-sheet financing, and tranche-rate scenarios to identify the optimal structure.
Based on load, ownership, and tax position, we recommend Buy-All or Netting and target a specific upcoming PURA tranche window for application submission.
We submit the interconnection application to Eversource CT or United Illuminating, manage the study, and coordinate any distribution-system studies required for Medium or Large tier projects.
Engineered drawings, municipal permits, prevailing-wage documentation (for ≥ 1 MW), and construction are executed under a single point of accountability.
Final inspection, utility witness test, and Permission to Operate. The 20-year NRES tariff clock starts on the PTO date at the locked-in tranche rate.
The master guide to Connecticut commercial solar — sizing, financing pathways, and deal structures.
The residential counterpart to NRES — useful context for understanding the shared PURA framework.
A deeper dive into how Netting actually works on Eversource and UI commercial bills.
How to use CT Green Bank C-PACE to fund NRES Netting projects with no capex out of pocket.
Loan loss reserves, soft-cost support, and storage incentives that pair with NRES.
5-year MACRS mechanics and how the half-basis adjustment interacts with Section 48E.
Section 6418 cash sales and Section 6417 direct pay for tax-exempt hosts under NRES.
How to preserve the full 30% Section 48E on projects of 1 MW or more.
The Non-Residential Renewable Energy Solutions (NRES) tariff is Connecticut's current compensation mechanism for new commercial, industrial, municipal, and nonprofit solar projects. It was created by Public Act 19-35 (the 2019 Clean Energy Act) and implemented through PURA Docket 20-07-01, which also created the residential RRES program. NRES replaced the earlier ZREC (Zero Emission REC) and LREC (Low Emission REC) auctions for new projects starting in 2022. Existing ZREC and LREC contracts continue under their original 15-year terms, but all new commercial solar now enrolls in NRES.
NuWatt builds every CT commercial solar proposal around the current NRES tranche economics — Buy-All vs Netting, size tier, interconnection realities, Section 48E, MACRS, 6418 transferability, and C-PACE stacked together. No templated PDFs, no out-of-date ZREC math.