The bill amends the General Laws in Chapter 39-26.4, "Net Metering," to update definitions and provisions related to net metering systems in Rhode Island. It introduces a new definition for "Community remote system," which is a facility that generates electricity using an eligible net-metering resource and allocates net-metering credits to accounts associated with low- or moderate-income housing or to at least three eligible credit-recipient customer accounts, with no more than 50% of the credits allocated to one recipient. The bill also defines terms such as "Core forest," "Electric distribution company," "Eligible credit recipient," "Eligible resource," and "Eligible system," with an insertion specifying that systems over 25 kW must be designed to produce no more electricity annually than the site's usage based on a three-year average. It clarifies ownership and credit transfer rules for community remote net-metering systems, excludes certain utility companies from the definition of "Electric distribution company," and sets a future effective date of July 1, 2060, for the definition of an eligible net-metering system.

Significant changes include the insertion of new language regarding the treatment of excess renewable credits, where for systems 25 kW or less, excess credits apply to all production beyond 100% of the generator's consumption, and the credits shall be equal to the ISO-New England energy clearing price. The bill removes the provision that excess credits should be equal to the electric distribution company's avoided cost rate. It also defines "project," "public entity," "republic entity system," "renewable credit," and "third party," and introduces a new section setting policies for net metering, including maximum capacities, siting requirements, and aggregate capacity limits. The bill establishes a new billing plan for net-metered accounts, allowing for annual reconciliation and the option for customers to cash out credit balances. It exempts certain accounts from back-up rates and mandates the redesign of the community solar remote net metering program. The act would take effect upon passage.