The bill amends the General Laws in Chapter 39-26.4, "Net Metering," by introducing new definitions and updating existing ones to clarify terms related to net metering systems in Rhode Island. Notably, it defines a "Community remote net-metering system" and sets criteria for the allocation of net-metering credits, ensuring that no more than 50% of the credits are allocated to one eligible credit recipient. It also revises the sizing requirements for eligible net-metering systems, removing the previous design and size limitations based on the user's average annual consumption. The bill allows for net-metering systems to be owned by the customer of record or a third party and provides for net-metering financing arrangements, treating certain entities such as public entities, educational institutions, hospitals, nonprofits, and multi-municipal collaboratives as having eligible net-metering systems.

Additionally, the bill addresses the calculation of "Excess renewable net-metering credit," removing the previous cap of 125% and stating that excess credits shall be equal to the electric distribution company's avoided cost rate. It grants the commission authority to make determinations regarding the applicability of this credit. The bill also sets a maximum allowable capacity for eligible net-metering systems at 10 megawatts (MW), establishes a cap of 275 MWac for ground-mounted systems, and requires construction or operation by July 1, 2030. It allows for the estimation of production and consumption for net-metered accounts and establishes a monthly billing plan with annual reconciliation. The bill exempts customer accounts associated with eligible net-metering systems from backup or standby rates and mandates the recovery of any revenue shortfall through a uniform surcharge. It also tasks the Rhode Island office of energy resources with redesigning the community solar remote net metering program and takes effect upon passage to prevent utility companies from limiting net metering site eligibility based on prior consumption.