Connecticut HB 5340 Extends the Solar Program Through 2035 and Exempts Battery Storage From Future Caps

Connecticut House Bill 5340, enacted in 2026, extends the Residential Renewable Energy Solutions program through 2035 and exempts battery storage systems from the capacity caps that would have limited residential solar programs beginning in 2028. The extension provides a longer planning horizon for Greater Hartford and Tolland County homeowners considering solar panel or solar-plus-battery installations. Here is what HB 5340 changes, what it means for homeowners who are evaluating a solar investment, and how it interacts with the rest of Connecticut's renewable energy incentive landscape.

What HB 5340 Changes and Why the Extension Matters for Connecticut Solar Customers

The Residential Renewable Energy Solutions program is the primary framework through which Connecticut homeowners with solar panels receive compensation for the excess electricity their systems generate and feed back to the grid. Under RRES, qualifying solar customers receive bill credits at a rate set by the program for electricity delivered to the grid when their solar panels generate more power than the home consumes. The program provides the billing structure and the rate guarantees that make the financial case for solar installation predictable over the life of the solar panels, which typically have a useful life of 25 to 30 years.

Before HB 5340 was enacted, the RRES program was scheduled to face significant changes and capacity constraints beginning in 2028. Enrollment caps would have limited how many new customers could participate in the program at the existing favorable rates, and the program's future beyond 2028 was uncertain. This uncertainty made it difficult for homeowners evaluating a solar investment to model the program benefits over the full life of the panels with confidence. HB 5340 addresses this directly by extending the program through 2035 and removing the enrollment caps that would have restricted new participation.

The battery storage exemption from capacity caps is a particularly important element of HB 5340. Battery storage systems are increasingly common additions to residential solar installations, and in Connecticut's incentive structure they are eligible for the separate Energy Storage Solutions program incentives. By exempting battery storage from the 2028 capacity caps that would have constrained solar-only installations, HB 5340 ensures that homeowners who add storage to their solar system are not inadvertently excluded from program benefits. A solar-plus-battery installation retains full RRES program eligibility through 2035 regardless of whether solar-only installations might face cap limitations in some scenarios.

What HB 5340 Means for Homeowners Evaluating Solar Now

For homeowners in Greater Hartford and Tolland County who have been deferring a solar decision because of questions about the long-term program structure, HB 5340 provides the program clarity they have been waiting for. A solar installation completed in 2026 or 2027 will participate in a program framework that is now legislatively committed through 2035, giving homeowners a nine-year window of program stability to factor into their return-on-investment calculations. The financial case for solar in Connecticut has always required modeling the program benefits over a multi-year period; a legislatively extended program reduces the uncertainty in those projections.

The interaction of HB 5340 with the other 2026 incentive changes is worth understanding. The federal 30C EV charger tax credit expires June 30, 2026, which removes one incentive from the Connecticut energy upgrade landscape. The Eversource residential EV charger rebates became income-restricted as of January 1, 2026. However, solar panel installations benefit from the federal residential clean energy tax credit of 30 percent of installation cost, which is not the same as the 30C EV charger credit and continues under current federal law through at least 2032. Combined with the RRES extension through 2035, the financial picture for solar in Connecticut is more stable than the EV charger incentive landscape.

TJF Electric is a licensed Connecticut electrical contractor with specific experience in residential solar system electrical work, including the panel upgrades and circuit work that solar installations require. We do not install the solar panels themselves, but we handle the electrical side of solar and battery storage projects throughout Greater Hartford and Tolland County, including coordination with solar installers, permit applications, and inspection. Call us to discuss the electrical scope of a solar or battery project and how HB 5340's program extension affects the timeline considerations for your installation. This article provides general information and does not constitute financial or tax advice.

Solar-Plus-Battery Installations and the Combined Incentive Picture in Connecticut

Adding battery storage to a solar installation in Connecticut activates two separate incentive programs simultaneously: the RRES program framework for the solar panels (now extended through 2035 under HB 5340) and the Energy Storage Solutions program incentives for the battery (restructured as of April 1, 2026 with standard enrollment at $30/kWh and performance track at $300 to $550/kW/year). For homeowners who are investing in both solar and storage at the same time, the combination of these programs represents the most financially supported scenario in Connecticut's current incentive landscape.

The electrical work for a solar-plus-battery installation is more complex than for solar alone. A properly integrated solar-plus-battery system requires a correctly sized electrical panel, a battery-ready inverter or hybrid inverter that manages both solar input and battery charging and discharging, dedicated circuits for the battery, proper metering for the RRES billing arrangement, and a transfer switch or subpanel if the battery is intended to provide backup power for critical loads during a grid outage. Each of these components must be installed by a licensed Connecticut electrician to comply with the state's electrical code and to satisfy the permit and inspection requirements for both the RRES enrollment and the ESS program application.

TJF Electric has performed the electrical installation scope on residential solar-plus-battery projects and understands how to configure the electrical system correctly for both program enrollments. Whether you are working with a solar installer who needs a licensed electrician for the electrical scope, or you are planning the full project and need an electrical assessment, we can provide a detailed evaluation of your home's electrical system and a proposal for the complete electrical installation. Contact TJF Electric at any time to schedule a consultation for solar, battery storage, or combined projects.

5 Reasons HB 5340 Changes the Solar Decision for Connecticut Homeowners

Connecticut homeowners who deferred a solar or battery decision because of program uncertainty now have stronger reasons to move forward. Here is what changed.

1. The program framework is now committed through 2035: Before HB 5340, homeowners modeling a 25-year solar investment faced significant uncertainty about program terms after 2028. The legislatively extended program through 2035 gives homeowners a much longer window of program stability to use in financial projections.
2. Battery storage is protected from future enrollment caps: HB 5340's explicit exemption of battery storage from capacity caps means solar-plus-battery installations retain full program access regardless of how solar-only program caps might evolve after 2028. This makes the combined investment more predictable.
3. The 30 percent federal solar tax credit is still available and is separate from the expiring EV charger credit: Some homeowners confuse the 30C EV charger credit (expiring June 30, 2026) with the residential clean energy credit for solar (30 percent, available through at least 2032). Solar installations are not affected by the 30C expiration.
4. Battery storage incentives can be stacked with solar program benefits: The RRES extension for solar and the restructured ESS incentives for batteries are separate programs that apply simultaneously to a solar-plus-battery installation. Combining them creates the most financially supported scenario in Connecticut's 2026 incentive landscape.
5. Electrical panel upgrades are often needed before solar and should be planned together: Many Greater Hartford area homes need a panel upgrade before solar installation, and a panel upgrade done in advance of solar can be sized for the full future electrical load including the battery. Planning the electrical side early reduces total project cost.

Frequently asked questions

Does HB 5340 affect my existing solar installation's billing rate under RRES?

HB 5340 extends the RRES program and provides continuity for existing participants. If you are already enrolled in the RRES program, the extension means your program participation continues under a framework with legislative commitment through 2035. Specific rate adjustments within the program framework are set by the Public Utilities Regulatory Authority and may change over time; extension of the program itself does not freeze the rate, but it does ensure program continuity. Contact your utility's energy programs team for the current rate that applies to your specific RRES enrollment.

I have solar panels but no battery. Does HB 5340 benefit me?

Yes. HB 5340 extends the RRES program framework that applies to your existing solar installation through 2035, providing program continuity. If you later add battery storage, the battery exemption from capacity caps in HB 5340 means your solar-plus-battery configuration will retain program eligibility. Adding battery storage to an existing solar system is a project TJF Electric can assess and support on the electrical side.

When is the best time to install solar or battery storage given HB 5340?

HB 5340 removes the urgency that program expiration uncertainty had previously created, since the program framework now extends through 2035. However, the federal 30 percent clean energy tax credit for solar has a clear phase-down schedule beginning in 2033 (dropping to 26 percent) and ending in 2035 (dropping to 22 percent). Installing in 2026 or 2027 captures the full 30 percent credit. There is no reason to rush irrationally, but there is also value in not waiting indefinitely given the federal credit schedule.