This bill amends Minnesota Statutes 2024, specifically section 216B.164, to modify provisions related to net metering. Key definitions are clarified, including the terms "capacity," which now specifies the production capability of a qualifying facility, and "net metered facility," which refers to facilities designed to offset energy use through renewable or high-efficiency generation sources. The bill also introduces changes to the compensation structure for customers with qualifying facilities, particularly those with capacities below 40 kilowatts and 1,000 kilowatts, ensuring that compensation for net input into the utility system is based on average retail energy rates and includes provisions for kilowatt-hour credits that can be carried forward.

Additionally, the bill stipulates that any kilowatt-hour credits carried forward by customers will now be compensated at a per kilowatt-hour rate if they are canceled at the end of the calendar year, replacing the previous provision that offered no additional compensation. The amendments aim to enhance the clarity and fairness of net metering practices, ensuring that customers are adequately compensated for their contributions to the utility system while maintaining a reasonable cost structure for utilities.

Statutes affected:
Introduction: 216B.164