Hartford — Gov. Dannel Malloy's bill pushing renewable energy cleared the legislature's Energy and Technology Committee on Thursday but is far from a done deal, with lawmakers and solar advocates worried some provisions could curtail the state's growing solar industry.

The keystone of Senate Bill 9 is ramping up the state's renewable portfolio standard — requiring 40 percent of the state's electricity to come from solar, wind and fuel cells by 2030.

While only a few lawmakers voted against sending the bill to the floor, several gave it half-hearted approval and argued the measure needs substantial work before this year's short session wraps up in May. State Sen. Paul Formica, R-East Lyme, and state Reps. Holly Cheeseman, R-East Lyme, and Joe de la Cruz, D-Groton, voted in favor of moving the bill along.

Many lawmakers said solar advocates and installers had hammered their inboxes and voicemails with concerns about proposed changes to the way residential customers are compensated for solar power they generate.

"We should be careful about where we tread with this topic," state Rep. Chris Perone, D-Norwalk, said. "I don't feel the bill is ready for prime time yet."

The Department of Energy and Environmental Protection has called for transitioning away from net metering, in which utilities credit residential customers at retail rates for excess energy their solar panels feed into the grid. DEEP and utilities say the model unfairly shifts electricity distribution costs to non-solar ratepayers across the state.

The bill instead calls for a bid among utilities, run by the Public Utilities Regulatory Authority, to set a fixed price to compensate solar residential customers. The bill initially included only a "buy all, sell all" model, requiring customers to sell all their solar power to the utility at the rate set by PURA.

A mix of solar industry members and environmentalists maligned the plan, saying it would kill incentive to install solar panels and block homeowners from storing solar power with batteries or taking advantage of smart home systems.

"Ending net metering would end a customer's right to consume their own solar power, and would hamper the development of a clean, modern, efficient electric grid," said Emily Lewis of the Acadia Center on Thursday.

But DEEP spokesman Chris Collibee said regulators and lawmakers responded to the pushback by including in the bill a second compensation option available to residential solar customers: a "use/buy/sell" model that would let customers use or store power they generate as they see fit, or sell power into the grid at the rate set by PURA.

The original "buy all, sell all" option "may be better for people who aren't home a lot or using a lot of power during the day," Collibee said.

"But there might be some who want to reduce their load, and some interested in emerging technologies," he said. "This is consumer-friendly and letting the customer decide what works for them. We are listening to advocates and industry leaders and continue to work on the bill."

Net metering battle wages on

Mike Trahan, executive director of Solar Connecticut, an industry association, argued DEEP has failed to prove net metering has shifted substantial costs to non-solar homeowners.

"They're trying to paint net metering as the boogeyman," Trahan said. "There's 25,000 homes with solar installed right now. Just how much of an economic burden are they passing on to the 1 million ratepayers? We think net metering keeps thousands of solar workers on the job and creates tens of millions of dollars in tax revenue."

Trahan also worries the bill caps spending on residential solar incentives at $35 million at a time when the state is deploying about ten times as many megawatts of solar power as it did six years ago.

"Why would a business come here or stay here if the state is working against you?" he said.

Stephen Lassiter, public policy manager for installer Sunrun, said the state should avoid "hasty decisions" that prompted layoffs in some states.

"In Nevada, lawmakers actually reinstated the simple net metering billing structure due to intense consumer backlash for more affordable, reliable, cleaner energy options, options that Connecticut residents are clamoring for, too," Lassiter said.

But Lewis, of the Acadia Center, noted the bill had several positive initiatives, including protecting funds dedicated to energy efficiency so lawmakers couldn't raid the money to cover state deficits. Additionally, the bill ensures electric customers with oil heat will have fair access to efficiency programs, Lewis said.

In a statement, Malloy said the state was "one step closer to taking real and substantive action to secure our state's clean energy future."

"Today's vote is a victory for all of Connecticut in support of meeting our aggressive climate change goals and we thank the committee for their work on this legislation," DEEP Commissioner Rob Klee said.

The bill also targets reductions to energy consumption and helps the Connecticut Green Bank become self-sustaining. The Green Bank spurs private investment and helps customers finance solar installations and efficiency projects.

"Today's decision bought more time for folks to work things out," Green Bank President and CEO Bryan Garcia said. "We shall see what comes from the extra time."

b.kail@theday.com