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 provisions that exempt systems with a nameplate capacity of 25 kilowatts or less from prior consumption restrictions, thereby broadening access to net metering for smaller systems. The bill also revises the treatment of excess renewable net-metering credits, allowing all production beyond 100% of a self-generator's consumption to qualify for credits based on the wholesale electricity rate.

Additionally, the bill specifies that for systems with a nameplate capacity in excess of 25 kilowatts, excess renewable net-metering credits shall be limited to an additional 25% beyond the net metering agreement. It 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 timeline for excluding the distribution kilowatt-hour charge for remote public entity and multi-municipal collaborative net-metering systems from January 1, 2050, to January 1, 2060. It clarifies definitions related to renewable self-generators and third-party financing, ensuring that third parties are not classified as public utilities. Furthermore, it sets a maximum allowable capacity of eligible net-metering systems at ten megawatts (10 MW) and establishes guidelines for developing systems in core forests. The Rhode Island office of energy resources is tasked with redesigning the community solar remote net metering program to include provisions for low- and moderate-income residents, while also capping the total capacity of community solar projects. The act aims to enhance the accessibility and efficiency of net metering and will take effect upon passage.