The bill amends Chapter 39-26.4 of the General Laws, titled "Net Metering," to enhance 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 systems with a nameplate capacity of 25 kW or less cannot have their eligibility restricted based on prior consumption, thereby increasing flexibility for various stakeholders. For systems with a nameplate capacity exceeding 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 act also extends the date for the exclusion of distribution kilowatt-hour charges from renewable net-metering credits for remote public entity and multi-municipal collaborative systems from January 1, 2050, to January 1, 2060. It is intended to take effect upon passage, ensuring that utility companies cannot limit eligibility based on prior consumption and that excess energy generated is credited to consumers.