Connecticut Races to Lock in Solar Energy Projects Before Federal Credits Expire
December 18, 2025
The Connecticut Department of Energy and Environmental Protection announced the selection of three solar projects on Thursday that will expand grid capacity, racing to lock in federal clean energy tax credits before they expire.
The agency said the projects would secure affordable, reliable and clean energy sources — but declined to disclose the bid prices.
“The price is kept confidential while negotiations are ongoing,” a department spokesperson responded to queries from CT Examiner.
The selected projects will total approximately 67 megawatts of capacity, enough to supply 12,000 homes in the state, according to DEEP. The agency expects them to be online before the end of 2030.
In its press release, DEEP explained the selection was launched on September 10 and conducted expeditiously to choose advanced-stage projects that could capitalize on federal incentives while they’re still available.
“We are pleased to announce the selection of new grid-scale solar projects that can take advantage of federal tax credits before they expire to help provide affordable, reliable clean energy to Connecticut residents and businesses,” DEEP Commissioner Katie Dykes said. “By working together with New England and state partners, and working quickly to take advantage of competitively priced projects, we are able to secure greater affordability and reliability benefits for Connecticut at a fraction of the cost.”
The Inflation Reduction Act, passed under the Biden Administration, modified tax credits for carbon-neutral technologies, with changes that took effect in January this year. These changes introduced two types of benefits, of which developers could choose only one—an immediate 30% tax credit on the investment value or a tax credit of up to 2.8 cents per kilowatt-hour produced over 10 years from the start of production.
The so-called One Big Beautiful Bill Act, passed this year, determined that credits for solar and wind projects would be eliminated for projects that begin construction after July 4, 2026 and projects that are not in service before the end of 2027. However, projects that begin or are completed before those two deadlines would not be affected.
The cost of renewable energy has been a political football in recent years. Critics blame renewable generation in part for the state’s high cost of electricity, among the most expensive in the country, while renewable energy advocates point to falling costs in recent years, and the need to decarbonize the state’s sources of energy.
Over the past 12 months, the wholesale price of electricity in Connecticut was just above 7 cents per kilowatt-hour. Other large-scale solar projects had costs that doubled that figure.
Revolution Wind, the first offshore wind project expected to start supplying power to Connecticut homes next year, has an agreed 10 cents per kilowatt-hour price in its purchase agreement.
State Sen. Ryan Fazio, R-Greenwich, introduced a proposal in the past legislative session that would have prohibited power purchase agreements at 150% above the wholesale price.
Regional collaboration
The selection of new solar projects was conducted through a multi-state process led by DEEP. Massachusetts and Maine participated, along with Vermont’s largest electric utility. Connecticut chose the largest capacity, accounting for 39% of the 173 megawatts selected collectively by the four states.
“Regional collaboration is critical to expanding and diversifying our energy supply, especially as we work to bring down the cost of electricity for Connecticut ratepayers,” Gov. Ned Lamont said, according to a press release issued by DEEP. “These resources can start providing power in the near future, sooner than any other new generation resources, and will help ensure we have a more reliable and affordable grid.”
Connecticut’s share of the project will be funded through contracts with utilities, subject to review by the Public Utilities Regulatory Authority.
Husky Solar, a 50-megawatt project, is the project that would be located in Connecticut, in the town of Plainfield. The state selected 25% of this project’s capacity, while the remainder was divided between Massachusetts and Maine.
Connecticut also selected two solar projects in Vermont; Viridis Solar, with 50 megawatts, and Fair Haven Solar, with 20 megawatts. Connecticut secured about 80% of each project’s capacity.
The state has significantly expanded its solar capacity over the past decade to nearly 1.7 gigawatts by 2024, enough to power about 245,000 homes, according to data from the Solar Energy Industries Association.
Last year, when Connecticut decided to pass on selecting offshore wind energy in the tri-state auction held with Massachusetts and Rhode Island, the state announced the same day that it had opted for solar and batteries to increase capacity.
Capacity, however, is a maximum estimate that does not reflect energy generation variability. In the total electricity generation mix, natural gas continues to be the most important source. In September 2025, more than 55% of electricity was generated by gas sources, nuclear power accounted for 39% and renewables 4%, according to data from the U.S. Energy Information Administration.
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