This bill makes several changes to the definitions and requirements for net metering in Rhode Island. It adds new definitions for "Community remote system" and "Eligible credit recipient" and provides specific criteria for housing developments to qualify as eligible credit recipients. The bill also clarifies that certain entities, such as public entities, educational institutions, hospitals, nonprofits, and multi-municipal collaboratives, are eligible for net metering. Additionally, the bill defines "preferred sites" as sites that have had previous development or disturbance and specifies that certain net-metering systems will not include the distribution kilowatt-hour charge unless an interconnection study has been requested and payment has been received.

The bill also establishes policies for net metering, including the maximum allowable capacity for eligible net-metering systems and community remote net-metering systems, the calculation of renewable net-metering credits, and the rates applicable to net-metered accounts. It exempts electric distribution company customer accounts associated with eligible net-metering systems from back-up or standby rates and allows for the recovery of costs incurred by the electric distribution company through a per-kilowatt-hour surcharge on customer bills. The bill also amends the General Laws to clarify the purpose of the Renewable Energy Growth Program and includes definitions for various terms used in the chapter. The bill aims to promote the installation of grid-connected renewable energy generation, protect important forest areas, diversify energy generation sources, stimulate economic development, improve distribution system resilience and reliability, and reduce distribution system costs.