An Act To Amend Title 26 Of The Delaware Code Relating To Public Utilities And Net Metering.
SB 239 amends Delaware’s net energy metering statute in Title 26 to revise how customer-generators are credited for excess electricity and to remove the existing 8% cap on the total net-metered generating capacity an electric utility must accept. The bill keeps the core net-metering framework in place, including crediting customers for excess production, allowing credits to carry forward, and preserving interconnection and safety requirements, but it changes the valuation of monthly excess kWh credits for commission-regulated utilities beginning January 1, 2024. Under the bill, those credits are valued using the volumetric supply and distribution components of the customer’s rate schedule, excluding societal benefits charges, and they may not offset fixed monthly customer charges.
The bill also clarifies that the customer-generator generally retains ownership of renewable energy credits unless transferred by agreement, assigns responsibility for supply-related excess kWh credits to the supplier rather than only the distribution company, and allows certain nonresidential customers to be assessed a fee in limited circumstances if interconnection and administration costs outweigh broader system and policy benefits. It preserves rules on nondiscriminatory service, meter ownership and cost-sharing, and safety standards for generating systems and grid-integrated electric vehicles, while allowing equipment to remain connected if a customer abandons the property unless it poses a safety or reliability risk.
In practical terms, SB 239 would affect electric utilities, municipal electric companies, electric cooperatives, solar and other distributed generation customers, and suppliers operating under Delaware’s net-metering rules. The most significant legal change is the removal of the 8% statewide utility cap on customer-generation, which could expand access to net metering for additional customers after a utility reaches that threshold. The bill also shifts some cost recovery and billing responsibilities and may alter the economics of rooftop solar and other distributed energy systems by limiting how excess credits are applied.
The general sentiment reflected by the bill’s sponsorship and unanimous Senate third-reading vote is supportive of expanding and stabilizing net metering in Delaware. The absence of recorded committee transcript debate suggests little visible opposition in the available record, and the 17-0 Senate vote indicates broad agreement. The bill’s synopsis frames the measure as a straightforward removal of the cap, suggesting the main policy goal is to preserve continued growth of customer-owned generation rather than to restrict it.
The main point of potential contention is cost allocation: utilities may view the removal of the cap and the crediting rules as increasing administrative and system costs, while supporters likely see the bill as protecting customer-generators and renewable energy adoption. Another possible issue is the new valuation method for excess credits, which excludes societal benefits charges and prevents credits from reducing fixed monthly charges, potentially affecting customer savings and utility revenue recovery. These provisions suggest the bill balances pro-solar expansion with utility concerns about grid costs and rate design.
SB 239 would amend Title 26, Section 1014(e) of the Delaware Code governing public utilities and net energy metering. It removes the 8% cap that currently allows an electric utility to stop offering net-metering services once customer-generation reaches a specified share of peak demand, and it revises how excess generation credits are calculated and carried forward. The bill also changes the treatment of renewable energy credits, interconnection costs, meter costs, and limited fee authority for certain nonresidential customers, while preserving existing safety, nondiscrimination, and interconnection requirements.
The available record shows strong support for the bill. It was sponsored by Senator Hansen and multiple House and Senate co-sponsors, and it passed Senate third reading unanimously, 17-0. With no committee transcript available, there is no recorded public debate in the provided materials, but the vote and sponsorship pattern indicate broad bipartisan or cross-chamber agreement on expanding net metering access.
The likely areas of contention are utility cost recovery and rate design. Electric utilities and distribution companies may be concerned that removing the 8% cap could increase the number of net-metered customers and associated administrative or infrastructure costs, while supporters would argue that the cap unnecessarily limits distributed renewable generation. Another point of debate is the new credit valuation rule, which excludes societal benefits charges and prevents excess credits from offsetting fixed monthly charges; this may be viewed by customer-generators as reducing compensation, while utilities may see it as necessary to avoid shifting costs to non-participating customers.