The bill amends the General Laws in Chapter 39-26.4, "Net Metering," to update definitions and provisions related to net metering systems, including the introduction of a "Community remote net-metering system." This new system allows for the generation of electricity using an eligible net-metering resource, with credits allocated to accounts associated with low- or moderate-income housing or to at least three eligible credit-recipient customer accounts, ensuring no more than 50% of credits go to one recipient. The bill also revises the definition of an "Eligible net-metering system," removing the previous requirement that the system's annual production be capped at the renewable self-generator's usage based on a three-year average. It clarifies that eligible net-metering systems can be owned by the customer of record or a third party and that certain entities can designate accounts for net metering.

The bill further modifies the valuation of "Excess renewable net-metering credit," eliminating the 125% cap on production beyond the self-generator's consumption and the credit calculation based on the electric distribution company's avoided cost rate. Instead, it introduces a tiered credit system based on the percentage of energy produced relative to consumption, with the commission retaining authority over credit applicability. The bill sets a maximum capacity for eligible net-metering systems at 10 MW and a maximum aggregate amount for community remote net-metering systems at 30 MW until December 31, 2018. It allows for the estimation of production and consumption over a 12-month period, with reconciliation at the end, and mandates that customers receive credits to offset usage. The bill includes an insertion requiring electric distribution companies to issue checks for excess net-metering credits upon request and a deletion removing the payment for excess electricity generated up to an additional 25% beyond the customer's usage. It exempts customer accounts from back-up or standby rates and outlines the billing process for compliance costs and renewable net-metering credits. The act will take effect upon passage.

Statutes affected:
5033: 39-26.4-2