The bill amends existing laws concerning on-premises energy generation, particularly net metering systems. It expands the definition of "net metering system" to include systems with an electrical generating capacity of up to one megawatt for both consumer-owned and investor-owned utilities. The deadline for electric utilities to offer net metering is extended to December 31, 2029, and the cumulative generating capacity threshold for net metering systems is increased from four percent to six percent of the utility's peak demand during 1996. Additionally, electric utilities are required to enter into contracts of at least 25 years with eligible customer-generators, which can be transferred to future owners of the system.

The bill also introduces provisions for meter aggregation, allowing customer-generators to combine their net metering systems across contiguous parcels. Unused kilowatt-hour credits at the end of the year will be allocated to electric utilities for distribution to low-income customers through energy assistance programs. A new requirement mandates that customers purchasing solar energy systems must have a written contract with a solar energy contractor, detailing work, warranties, production projections, and cancellation rights. The bill establishes a work group to explore the future of net metering in Washington, with recommendations due by December 1, 2026, and aims to update the state's net metering policy by January 1, 2030.

Statutes affected:
Original Bill: 80.60.020, 80.60.030
Substitute Bill: 80.60.020, 80.60.030