Allows preferred sites to be developed without being subject to the cap or rate reduction in the net metering statute.
Summary
S1121 revises Rhode Island’s net metering law to expand and rework how renewable energy projects are counted, credited, and administered. The bill keeps the existing 10 MW maximum for eligible net-metering systems, but it adds and clarifies several siting and capacity rules, including limits on development in core forests, exceptions for preferred sites, and deadlines for certain ground-mounted projects to be under construction or operating by July 1, 2030. It also preserves and updates provisions for community remote net metering, including aggregate caps, billing reconciliation options, and crediting rules for excess generation.
A major feature of the bill is a redesign of the community solar remote net metering program by the Rhode Island Office of Energy Resources. The bill requires that up to 50% of a project be reserved for a commercial or industrial anchor tenant, while the remaining 50% must be allocated to low- and moderate-income residents and/or residents in disadvantaged or environmental justice communities. It also directs the office to account for federal energy funding and tax credits when setting credit rates, submit a benefit-cost analysis with any proposal, and seek a Public Utilities Commission ruling within 150 days. If approved, the redesigned program would be capped at 20 MW per year for two years until a 40 MW total cap is reached.
Impact
The bill would amend Rhode Island General Laws chapter 39-26.4 governing net metering, affecting eligible net-metering systems, community remote net-metering systems, electric distribution companies, the Office of Energy Resources, and the Public Utilities Commission. It changes how certain projects are sited and counted against capacity caps, creates exceptions for preferred sites and some previously advanced projects, and requires distribution companies to use updated billing, crediting, and reconciliation procedures. It also shifts program design authority to the Office of Energy Resources for the community solar remote net metering program and requires PUC review of any proposed redesign.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears supportive of expanding and refining net metering rather than opposing it. The bill’s structure suggests a policy goal of encouraging renewable energy development while steering projects toward preferred sites and ensuring community solar benefits reach low- and moderate-income households and environmental justice communities. The inclusion of cost-recovery provisions for utilities also indicates an effort to balance renewable energy expansion with utility rate impacts.
Contention
The main points of contention likely involve land use, utility cost recovery, and program eligibility. Environmental and land conservation interests may focus on the restrictions on core forest development and the exceptions for preferred sites, while renewable energy developers may be concerned about caps, deadlines, and siting limits. Utilities and ratepayer advocates may scrutinize the requirement that costs and credits be recovered through a uniform surcharge, as well as the exemption from standby or backup rates. There may also be debate over the mandated allocation of community solar subscriptions between anchor tenants and low- and moderate-income or environmental justice participants, and over whether the proposed caps and timelines are sufficient to support project financing.
An Act to direct certain electric utilities to undertake comprehensive assessments and establish pilot programs related to surplus interconnection service; report.