The bill amends the General Laws in Chapter 39-26.4, "Net Metering," by introducing new definitions and clarifying existing ones. It defines a "Community remote net-metering system" as 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. It also defines terms such as "Core forest," "Electric distribution company," "Eligible credit recipient," and "Eligible net-metering resource." The bill specifies that "Eligible net-metering systems" must be designed to produce electricity equal to or less than the user's average annual consumption over the previous three years for systems over 25 kW, while smaller systems are not restricted by prior consumption. It allows for ownership by the customer of record or a third party and includes provisions for systems owned by public entities, educational institutions, hospitals, nonprofits, and multi-municipal collaboratives.

Additionally, the bill changes the definition of "excess renewable net-metering credit" for systems 25 kW or less, stating that excess credit applies to all production beyond the generator's own consumption and shall be equal to the wholesale electricity rate, specifically the ISO-New England energy clearing price. It also introduces a new section, 39-26.4-3, setting policies for net metering, including maximum capacities, siting requirements, and aggregate limits. The bill allows for a billing plan that evens out monthly billings over a 12-month period, with a reconciliation at the end of the period. It exempts customer accounts associated with eligible net-metering systems from back-up or standby rates and mandates that any costs incurred by the electric distribution company for compliance be billed to all distribution customers annually through a surcharge. The bill directs the Rhode Island office of energy resources to redesign the community solar remote net metering program and takes effect upon passage, prohibiting utility companies from limiting net metering site eligibility based on prior consumption.