(a) Not later than July 1, 2016, the Connecticut Green Bank shall negotiate and develop master purchase agreements with each electric distribution company. Each such agreement shall require the electric distribution company to purchase, annually, fifteen-year tranches of solar home renewable energy credits produced by qualifying residential solar photovoltaic systems. Each electric distribution company’s annual obligation to purchase fifteen-year tranches of solar home renewable energy credits produced by qualifying residential solar photovoltaic systems begins on the date that the Public Utilities Regulatory Authority approves the master purchase agreement pursuant to subsection (e) of this section and the obligation to purchase additional fifteen-year tranches expires on December 31, 2022, or after the deployment of three hundred fifty megawatts of residential solar photovoltaic installation, in the aggregate, whichever occurs earlier.

(b) Solar home renewable energy credits shall be owned by the Connecticut Green Bank, until transferred to an electric distribution company pursuant to a master purchase agreement in accordance with subsection (a) of this section. A solar home renewable energy credit shall have an effective life covering the year of its production and the following calendar year. The obligation of the electric distribution companies to purchase solar home renewable energy credits pursuant to the master purchase agreement shall be apportioned as follows: (1) In the service area of an electric distribution company that has a service area of not more than seventeen cities and towns, twenty per cent of the annual aggregate credits; and (2) in the service area of an electric distribution company that has a service area of eighteen or more cities and towns, eighty per cent of the annual aggregate credits.

(c) Notwithstanding subdivision (1) of subsection (h) of § 16-244c, an electric distribution company may retire the solar home renewable energy credits it procures through the master purchase agreement to satisfy its obligation pursuant to § 16-245a or such company may resell such renewable energy credits, with the proceeds from resale to be netted against contract costs.

(d) To develop a master purchase agreement, the Connecticut Green Bank and an electric distribution company shall negotiate in good faith the final terms of the draft master purchase agreement. Thirty days after the date negotiations commence, either the Connecticut Green Bank or an electric distribution company may initiate a docket proceeding before the Public Utilities Regulatory Authority to resolve any outstanding issues pertaining to the master purchase agreement.

(e) Upon completion of negotiations on a master purchase agreement the Connecticut Green Bank and the electric distribution company shall, not later than January 1, 2017, and thereafter as applicable, jointly file, with the authority, an application for approval of the agreement by the authority. No such master purchase agreement may become effective without approval of the authority. The authority shall hold a contested case, in accordance with the provisions of chapter 54, to approve, reject or modify an application for approval of the master purchase agreement.

(f) The purchase price of solar home renewable energy credits shall be determined by the Connecticut Green Bank, and such purchase price shall decline over time commensurate with the schedule of declining performance-based incentives and expected performance-based buydowns. Such purchase price shall not exceed the lesser of either (1) the price of small zero-emission renewable energy credit projects for the preceding year, or (2) five dollars less per renewable energy credit than the alternative compliance payment pursuant to subsection (k) of § 16-245. Any solar project located on a property that contains or will contain any residence of a customer of an electric distribution company that is determined to meet the Connecticut Green Bank criteria as a residential dwelling for the residential solar investment program shall not be eligible for small zero-emission renewable energy credits pursuant to sections 16-244r and 16-244s or for low-emission renewable energy credits pursuant to § 16-244t.

(g) The electric distribution companies’ costs associated with complying with this section shall be recoverable on a timely basis through a fully reconciling, nonbypassable rate component. Nothing in this section shall preclude the resale or other disposition of energy or associated renewable energy credits purchased by an electric distribution company, provided the electric distribution company shall net the cost of payments made to projects under the master purchase agreement against the proceeds of the sale of energy or renewable energy credits and the difference shall be credited or charged to electric distribution company customers through a reconciling component of electric rates as determined by the authority that is nonbypassable when switching electric suppliers.

(h) Each electric distribution company shall annually file with the authority an accounting of all costs and fees incurred by such electric distribution company while complying with the master purchase agreement.

(i) Any certificates issued by the New England Power Pool Generation Information System for Class I renewable energy credits produced by a qualifying residential solar photovoltaic system after the electric distribution company obligation, pursuant to subsections (a) and (b) of this section, to purchase solar home renewable energy credits from such system expires shall be transferred from the Connecticut Green Bank to the electric distribution companies as follows: (1) In the service area of an electric distribution company that has a service area of not more than seventeen cities and towns, twenty per cent of such certificates; and (2) in the service area of an electric distribution company that has a service area of eighteen or more cities and towns, eighty per cent of such certificates. The electric distribution company shall either (A) resell such credits into the New England Power Pool Generation Information System renewable energy credit market, to be used by any electric supplier or electric distribution company to meet the requirements of § 16-245a, so long as the revenues from such sale are credited to the electric distribution company’s customers, or (B) retain such certificates to meet such company’s requirements under § 16-245a. In considering whether to sell or retain such certificates, the company shall select the option that is in the best interest of such company’s ratepayers.