The bill amends the Arkansas Renewable Energy Development Act of 2001 to establish specific requirements for compensating residential net-metering customers for net excess generation. It mandates that electric utilities must pay these customers at the retail rate for any excess energy generated, calculated on a kilowatt-to-kilowatt basis. Additionally, customers have the option to cash out their net excess generation, which can occur only once every six months and will be compensated at the wholesale rate. Customers can choose to receive this payment either as a credit on their utility bill or directly.

Furthermore, the bill stipulates that municipal utilities must adhere to the same compensation procedures outlined for residential net-metering customers. This ensures consistency across different types of utility providers in the state regarding how they handle net excess generation for residential customers. Overall, the amendments aim to enhance the financial incentives for residential customers who generate renewable energy.

Statutes affected:
HB 1047: 23-18-604(b), 23-18-605