39-26.4-3. Net metering.

(a) The following policies regarding net metering of electricity from eligible net-metering

systems and community remote net-metering systems and regarding any person that is a renewable

self-generator shall apply:

(1)(i) The maximum allowable capacity for eligible net-metering systems, based on

nameplate capacity, shall be ten megawatts (10 MW).

(vi) The maximum aggregate capacity of remote net metering allowable for ground-

mounted eligible net-metering systems, as defined by § 39-26.4-2(6), with the exception of systems

under § 39-26.4-3(e) and systems that have, as of April 15, 2023, submitted a complete application

to the appropriate municipality for any required permits and/or zoning changes or have requested

an interconnection study for which payment has been received by the distribution company, or if

an interconnection study is not required, a completed and paid interconnection application by the

distribution company as of June 24, 2023, shall be two hundred seventy-five one hundred seventy-

five megawatts, alternating current ( 275 175 MWac), excluding off-shore wind. None of the

systems to which this cap applies shall be in core forests unless on a preferred site located within

the core forest. A project counts against this maximum if it is in operation or under construction by

1 July 1, 2030 December 31, 2032 , as determined by the local distribution company. All eligible

2 ground-mounted net-metering systems must be under construction or in operation by July 1, 2030

3 December 31, 2032 . This restriction shall not apply to the following: (A) The eligible net-metering

system is interconnected behind the same meter as the net-metering customer’s load; and/or (B)

The energy generated by the eligible net-metering system is consumed by net-metered electric

service account(s) of the same owner of record that are actually located on the same or contiguous

parcels as the eligible net-metering system.

(2) For ease of administering net-metered accounts and stabilizing net-metered account

bills, the electric distribution company may elect (but is not required) to estimate for any twelve-

month (12) period:

(i) The production from the eligible net-metering system or community remote net-

metering system; and

(ii) Aggregate consumption of the net-metered accounts at the eligible net-metering system

site or the sum of the consumption of the eligible credit-recipient accounts associated with the

community remote net-metering system, and establish a monthly billing plan that reflects the

expected credits that would be applied to the net-metered accounts over twelve (12) months. The

billing plan would be designed to even out monthly billings over twelve (12) months, regardless of

actual production and usage. If such election is made by the electric distribution company, the

electric distribution company would reconcile payments and credits under the billing plan to actual

production and consumption at the end of the twelve-month (12) period and apply any credits or

charges to the net-metered accounts for any positive or negative difference, as applicable. Should

there be a material change in circumstances at the eligible net-metering system site or associated

accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the

electric distribution company during the reconciliation period. The electric distribution company

also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing

credits or carry-forward credits or charges to the next billing period. For residential-eligible net-

metering systems and community remote net-metering systems twenty-five kilowatts (25 KW) or

smaller, the electric distribution company, at its option, may administer renewable net-metering

credits month to month allowing unused credits to carry forward into the following billing period.

(3) If the electricity generated by an eligible net-metering system or community remote

net-metering system during a billing period is equal to, or less than, the net-metering customer’s

usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient

accounts associated with the community remote net-metering system during the billing period, the

customer shall receive renewable net-metering credits, that shall be applied to offset the net-

metering customer’s usage on accounts at the eligible net-metering system site, or shall be used to

credit the eligible credit-recipient’s electric account.

(4) If the electricity generated by an eligible net-metering system or community remote

net-metering system during a billing period is greater than the net-metering customer’s usage on

accounts at the eligible net-metering system site or the sum of the usage of the eligible credit-

recipient accounts associated with the community remote net-metering system during the billing

period, the customer shall be paid by excess renewable net-metering credits for the excess

electricity generated; provided that, for any excess electricity generated by a system with a

nameplate capacity in excess of twenty-five kilowatts (25 KW), excess renewable net-metering

credits shall be limited to excess up to an additional twenty-five percent (25%) beyond the net-

metering customer’s usage at the eligible net-metering system site, or the sum of the usage of the

eligible credit-recipient accounts associated with the community remote net-metering system

during the billing period; unless the electric distribution company and net-metering customer have

agreed to a billing plan pursuant to subsection (a)(2). Subject to the completion of any applicable

annual reconciliation of renewable net-metering credits and excess renewable net metering credits,

customers shall have the option to cash out any credit balance remaining provided that the amount

of the cash out shall be the lower of:

(i) The credit balance shown from the annual reconciliation of the applicable account; or

(ii) The credit balance on the applicable account on the date the electric distribution

company processes the cash out.

(5) The rates applicable to any net-metered account shall be the same as those that apply

to the rate classification that would be applicable to such account in the absence of net metering,

including customer and demand charges, and no other charges may be imposed to offset net-

metering credits.

(b) The commission shall exempt electric distribution company customer accounts

associated with an eligible net-metering system from back-up or standby rates commensurate with

the size of the eligible net-metering system, provided that any revenue shortfall caused by any such

exemption shall be fully recovered by the electric distribution company through rates.

(c) Any prudent and reasonable costs incurred by the electric distribution company

pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net-

metering credits or excess renewable net-metering credits provided to accounts associated with

eligible net-metering systems or community remote net-metering systems, shall be aggregated by

the distribution company and billed to all distribution customers on an annual basis through a

uniform, per-kilowatt-hour (KWh) surcharge embedded in the distribution component of the rates

reflected on customer bills.

(d) The billing process set out in this section shall be applicable to electric distribution

companies thirty (30) days after the enactment of this chapter.

(e) The Rhode Island office of energy resources shall redesign the community solar remote

net metering program to reflect the provisions of this chapter and to include a commercial or

industrial anchor tenant up to but not to exceed fifty percent (50%) of the project. The remaining

fifty percent (50%) must be allocated or subscribed to low- and moderate-income (LMI) residents

and/or those living in areas defined as disadvantaged and environmental justice communities. The

Rhode Island office of energy resources shall design the net metering credit rate and factor in

federal energy funding and tax credits to develop the most cost-effective rate for community solar

projects. It is expected that these projects will be operational for a twenty-year (20) period. The

Rhode Island office of energy resources shall file a benefit and cost analysis with any program

proposal filed to the Rhode Island public utilities commission. Once the Rhode Island office of

energy resources files a program proposal to the Rhode Island public utilities commission, a docket

shall be established, and the Rhode Island public utilities commission shall issue a ruling on the

program no later than one hundred and fifty (150) days. If a program is approved, it will be subject

to no greater than twenty megawatts (20 MW) per year for two years until the forty megawatts (40

MW) cap is met. Eligible net-metering systems shall be sited outside of core forests with the

exception of development on preferred sites in the core forest.

(f)(1) An eligible net-metering system owned by, or operated on behalf of, a public entity,

educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a commercial

or industrial customer through a net-metering financing arrangement, or an eligible community

remote net-metering system may make a one-time, irrevocable election by the later of: (i) the date

that is ninety (90) days after the commission approves a tariff pursuant to § 39-26.4-3(f)(2); or (ii)

the date that is sixty (60) days after execution of an interconnection agreement, to receive a fixed

renewable net-metering credit rate of nineteen cents ($0.19) per kilowatt-hour. Such fixed credit

rate shall be increased by 2.75% on a compound annual basis beginning January 1, 2028, and on

28 January 1 of each year thereafter. The fixed credit rate elected pursuant to this subsection shall

apply for a term of twenty-five (25) years from the date of such election and shall be governed by

§ 39-26.4-3(f)(4). Eligible net-metering systems making an election under this subsection shall

remain subject to the requirements of § 39-26.4-3(a)(4).

(2) No later than August 15, 2026, the electric distribution company shall file a tariff with

the commission to implement the fixed renewable net-metering credit for eligible net metering

systems that elect such credit, under terms and conditions set forth in the tariff. The tariff shall set

forth, at a minimum, the rights and obligations of the eligible net-metering systems and the electric

distribution company, including the conditions governing the calculation and payment of credits

by the electric distribution company. The commission shall approve a tariff no later than December

1, 2026.

(3) The commission shall have the authority to determine the final terms and conditions in

the tariff that is filed with the commission pursuant to this section. Once approved, the commission

shall retain exclusive jurisdiction over all payments, terms, conditions, rights, enforcement, and

implementation of the tariff, subject to appeals pursuant to chapter 5 of this title.

(4) It is the intention of the general assembly in enacting this provision that the developers,

owners, investors, customers, and lenders of eligible net-metering systems receiving credits under

the tariff be able to rely on the tariff for the entire term of the tariff for purposes of obtaining

financing. Consistent with that intention and expectation, the terms under the tariff, once approved

by the commission, shall not be altered in any way that would undermine such reliance on those

tariffs during the applicable terms of the tariff; and in no circumstance will the credit rate paid to

an eligible net-metering system be reduced during the term of the tariff once a project has elected

to receive a tariff under the terms of this chapter.

SECTION 6. Chapter 39-26 of the General Laws entitled "Renewable Energy Standard" is

hereby amended by adding thereto the following section: