The bill amends Chapter 39-26.4 of the General Laws, titled "Net Metering," to clarify definitions and eligibility criteria for net-metering systems. It introduces key definitions, including "net-metering resource" and "excess renewable net-metering credit," which now links its value to the wholesale electricity rate, specifically the ISO-New England energy clearing price, rather than the previously used avoided cost rate.

The bill stipulates that for systems with a nameplate capacity of 25 kW or less, eligibility shall not be restricted based on prior consumption. For systems with a nameplate capacity in excess of 25 kW, excess renewable net-metering credits are limited to excess generation up to an additional 25% beyond the net consumption.

Additionally, the bill allows customers to cash out any remaining credit balance after an annual reconciliation, with the cash-out amount being the lower of the credit balance shown from the reconciliation or the balance on the date the electric distribution company processes the cash out.

The timeline for excluding the distribution kilowatt-hour charge for remote public entity and multi-municipal collaborative net-metering systems is extended from January 1, 2050, to January 1, 2060. The act is intended to enhance the accessibility and efficiency of net metering and is set to take effect upon passage.