NRES replaced LREC/ZREC and virtual net metering
If you have seen older references to LREC/ZREC or virtual net metering (including on parts of our own site), here is where things stand. Connecticut's Low and Zero Emission Renewable Energy Credit program and the state's commercial virtual net metering program have closed to new projects. Their successor is NRES, a six-year program that launched in February 2022 and is administered by Eversource and UI under the oversight of the Public Utilities Regulatory Authority (PURA). Projects that already hold LREC or ZREC contracts keep them; new commercial projects bid into NRES.
NRES gives selected projects a 20-year tariff. At bid time you choose one of two compensation structures, and the choice is binding:
- Buy-All. The utility purchases all generation at your tariff price. Compensation arrives as an on-bill credit or a quarterly cash payment. The building's own bill is unchanged, which suits owners with a tenant-metered or low-load site.
- Netting. Generation first serves the building, and net exports are credited in dollars on the bill. This suits sites with daytime load where offsetting retail kWh is worth more than the buy-all price.
State, Agricultural, and Municipal (SAM) customers can share compensation across accounts, which partly fills the role virtual net metering used to play for towns and farms.