en.Wedoany.com Reported - Connecticut Governor Ned Lamont has signed HB 5340, a comprehensive energy policy bill. The bill extends the state's long-running Renewable Energy Solutions program through 2035, launches a follow-up community solar program, mandates automated residential solar permitting, and establishes new rules allowing the use of portable plug-in solar panels for residential use.
In addition to policies promoting solar development, HB 5340 includes two provisions that restrict new solar installations. One provision immediately suspends certain large-scale solar development projects, while the other imposes limits on the total annual funding and installed capacity for new solar installations statewide.
Some environmental groups have expressed concerns about the restrictive provisions in the bill. Environment Connecticut, an advocacy organization, stated in a press release that these two provisions would "create new barriers" for solar energy, specifically noting that the latter policy is an "unprecedented cap" that could force future homeowners to delay installation plans while awaiting regulatory approval. Nevertheless, the organization stated that, given the value of other important provisions in the bill, it ultimately worked with lawmakers to advance its passage.
The various new policies in HB 5340 will take effect in phases over the coming years. Regulations for balcony solar panels will take effect on October 1, 2026; tariffs for the Renewable Energy Solutions program and community solar project solicitations will begin on January 1, 2028; and a statewide automated residential permitting solution must be in place by July 1, 2028.
In terms of the state solar market, Connecticut typically ranks in the middle tier. According to data from the Solar Energy Industries Association (SEIA), the state ranks 27th nationally in total solar installed capacity, with approximately 5.53% of its electricity coming from solar, close to the national average of 6% cited by Hitachi Energy's market insight report. As of March 2026, data from the U.S. Energy Information Administration (EIA) shows that Connecticut's small-scale solar installed capacity (systems under 1 MW) is nearly 1.4 GW, while utility-scale solar photovoltaic installed capacity stands at 495 MW. These figures place the state 11th nationally in small-scale installed capacity and 37th in utility-scale installed capacity.
HB 5340 sets a cap of 180 MW on utility clean energy procurement targets from residential, non-residential, and community solar programs, subject to a total budget of $85 million. These limits will take effect in 2028. In 2025, EIA data shows the state added 129 MW of small-scale capacity and 46.7 MW of capacity greater than 1 MW but not exceeding 5 MW, totaling 175.7 MW, already approaching the new statutory cap. However, the law excludes residential solar installations paired with energy storage from the new cap, leaving room for the industry to adapt by prioritizing solar-plus-storage residential installations.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
