AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING -- PORTABLE SOLAR GENERATION DEVICES (Excludes portable solar generation devices intended primarily to offset part of a customer's electricity consumption from the definition of eligible net-metering system.)

S2359

2026 -- S 2359
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LC003849
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING -- PORTABLE
SOLAR GENERATION DEVICES

Introduced By:
Senators Valverde, Kallman, DiMario, DiPalma, Lauria, Quezada,
McKenney, Britto, Gu, and Rogers

Date Introduced:
January 30, 2026

Referred To:
Senate Environment & Agriculture
It is enacted by the General Assembly as follows:
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SECTION 1. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net
2
Metering" is hereby amended to read as follows:
3

39-26.4-2. Definitions.
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Terms not defined in this section herein shall have the same meaning as contained in
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chapter 26 of this title. When used in this chapter:
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(1) “Community remote net-metering system” means a facility generating electricity using
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an eligible net-metering resource that allocates net-metering credits to a minimum of one account
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for a system associated with low- or moderate-income housing eligible credit recipients, or three
9
(3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of
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the credits produced by the system are allocated to one eligible credit recipient, and provided further
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at least fifty percent (50%) of the credits produced by the system are allocated to the remaining
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eligible credit recipients in an amount not to exceed that which is produced annually by twenty-
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five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer
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credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of
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the eligible credit recipient accounts measured by the three-year (3) average annual consumption
16
of energy over the previous three (3) years. A projected annual consumption of energy may be used
17
until the actual three-year (3) average annual consumption of energy over the previous three (3)
18
years at the eligible credit recipient accounts becomes available for use in determining eligibility

1
of the generating system. The community remote net-metering system may be owned by the same
2
entity that is the customer of record on the net-metered account or may be owned by a third party.
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(2) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling
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two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25)
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yards from mapped roads, with eligibility questions to be resolved by the director of the department
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of environmental management. Such determination shall constitute a contested case as defined in
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§ 42-35-1.
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(3) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not
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include Block Island Power Company or Pascoag Utility District, each of whom shall be required
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to offer net metering to customers through a tariff approved by the public utilities commission after
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a public hearing. Any tariff or policy on file with the public utilities commission on the date of
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passage of this chapter shall remain in effect until the commission approves a new tariff.
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(4) “Eligible credit recipient” means one of the following eligible recipients in the electric
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distribution company’s service territory whose electric service account or accounts may receive
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net-metering credits from a community remote net-metering system. Eligible credit recipients
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include the following definitions:
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(i) Residential accounts in good standing.
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(ii) “Low- or moderate-income housing eligible credit recipient” means an electric service
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account or accounts in good standing associated with any housing development or developments
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owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative,
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or private developer that receives assistance under any federal, state, or municipal government
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program to assist the construction or rehabilitation of housing affordable to low- or moderate-
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income households, as defined in the applicable federal or state statute, or local ordinance,
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encumbered by a deed restriction or other covenant recorded in the land records of the municipality
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in which the housing is located, that:
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(A) Restricts occupancy of no less than fifty percent (50%) of the housing to households
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with a gross, annual income that does not exceed eighty percent (80%) of the area median income
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as defined annually by the United States Department of Housing and Urban Development (HUD);
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(B) Restricts the monthly rent, including a utility allowance, that may be charged to
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residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of
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a household earning eighty percent (80%) of the area median income as defined annually by HUD;
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(C) Has an original term of not less than thirty (30) years from initial occupancy.
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Electric service account or accounts in good standing associated with housing
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developments that are under common ownership or control may be considered a single low- or

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moderate-income housing eligible credit recipient for purposes of this section. The value of the
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credits shall be used to provide benefits to tenants.
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(iii) “Educational institutions” means public and private schools at the primary, secondary,
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and postsecondary levels.
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(iv) “Commercial or industrial customers” means any nonresidential customer of the
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electric distribution company.
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(5) “Eligible net-metering resource” means eligible renewable energy resource, as defined
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in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding
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all other listed eligible biomass fuels.
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(6) “Eligible net-metering system” means a facility generating electricity using an eligible
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net-metering resource that, for any system with a nameplate capacity in excess of twenty-five
12
kilowatts (25 KW), is reasonably designed and sized to annually produce electricity in an amount
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that is equal to, or less than, the renewable self-generator’s usage at the eligible net-metering system
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site measured by the three-year (3) average annual consumption of energy over the previous three
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(3) years at the electric distribution account(s) located at the eligible net-metering system site. A
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projected annual consumption of energy may be used until the actual three-year (3) average annual
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consumption of energy over the previous three (3) years at the electric distribution account(s)
18
located at the eligible net-metering system site becomes available for use in determining eligibility
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of the generating system. For any system with a nameplate capacity equal to or less than twenty-
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five kilowatts (25 KW), eligibility shall not be restricted based on prior consumption. The eligible
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net-metering system may be owned by the same entity that is the customer of record on the net-
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metered accounts or may be owned by a third party that is not the customer of record at the eligible
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net-metering system site and which may offer a third-party, net-metering financing arrangement or
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net-metering financing arrangement, as applicable. Notwithstanding any other provisions of this
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chapter, any eligible net-metering resource: (i) Owned by a public entity, educational institution,
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hospital, nonprofit, or multi-municipal collaborative; or (ii) Owned and operated by a renewable-
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generation developer on behalf of a public entity, educational institution, hospital, nonprofit, or
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multi-municipal collaborative through a net-metering financing arrangement shall be treated as an
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eligible net-metering system and all accounts designated by the public entity, educational
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institution, hospital, nonprofit, or multi-municipal collaborative for net metering shall be treated as
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accounts eligible for net metering within an eligible net-metering system site; or (iii) Owned and
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operated by a renewable-generation developer on behalf of one or more commercial or industrial
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customer(s) through net-metering financing arrangement(s) shall be treated as an eligible net-
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metering system within an eligible net-metering system site. Notwithstanding any other provision

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to the contrary, effective July 1, 2060, an eligible net-metering system means a facility generating
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electricity using an eligible net-metering resource that is interconnected behind the same meter as
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the net-metering customer’s load. "
Eligible net-metering system" does not include a portable solar
4
generation device.
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(7) “Eligible net-metering system site” means the site where the eligible net-metering
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system or community remote net-metering system is located or is part of the same campus or
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complex of sites contiguous to one another and the site where the eligible net-metering system or
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community remote net-metering system is located or a farm on which the eligible net-metering
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system or community remote net-metering system is located. Except for an eligible net-metering
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system owned by or operated on behalf of a public entity, educational institution, hospital,
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nonprofit, or multi-municipal collaborative or for a commercial or industrial customer through a
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net-metering financing arrangement, the purpose of this definition is to reasonably assure that
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energy generated by the eligible net-metering system is consumed by net-metered electric service
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account(s) that are actually located in the same geographical location as the eligible net-metering
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system. All energy generated from any eligible net-metering system is, and will be considered,
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consumed at the meter where the renewable energy resource is interconnected for valuation
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purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public
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entity, educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a
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commercial or industrial customer through a net-metering financing arrangement, or except for a
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community remote net-metering system, all of the net-metered accounts at the eligible net-metering
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system site must be the accounts of the same customer of record and customers are not permitted
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to enter into agreements or arrangements to change the name on accounts for the purpose of
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artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid
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this restriction. However, a property owner may change the nature of the metered service at the
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accounts at the site to be master metered in the owner’s name, or become the customer of record
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for each of the accounts, provided that the owner becoming the customer of record actually owns
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the property at which the account is located. As long as the net-metered accounts meet the
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requirements set forth in this definition, there is no limit on the number of accounts that may be net
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metered within the eligible net-metering system site.
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(8) “Excess renewable net-metering credit” means a credit that applies to an eligible net-
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metering system or community remote net-metering system for that portion of the production of
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electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five
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percent (125%), except for any system with a nameplate capacity equal to or less than twenty-five
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kilowatts (25 KW) for which excess renewable net-metering credit applies to all production of

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electrical energy beyond one hundred percent (100%) of the renewable self-generator’s own
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consumption at the eligible net-metering system site or the sum of the usage of the eligible credit
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recipient accounts associated with the community remote net-metering system during the
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applicable billing period.
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For electrical energy produced greater than one hundred percent (100%) of the renewable
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self-generator’s own electricity consumption at the eligible net-metering system site or the sum of
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the usage of the eligible credit recipient accounts associated with the community remote net-
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metering system during the applicable billing period, excess renewable net-metering credits shall
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be equal to the wholesale electricity rate, which is hereby declared to be the ISO-New England
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energy clearing price. When applying the ISO-New England energy clearing price to calculate the
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value of excess renewable net-metering credits, the electric distribution company, subject to
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commission approval and subject to amendment from time to time, may use an annual average,
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monthly average, or other time increment and may use Rhode Island zone pricing or other
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applicable locational pricing. The commission shall have the authority to make determinations as
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to the applicability of this credit to specific generation facilities to the extent there is any uncertainty
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or disagreement.
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(9) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings
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associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are
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owned by the same entity operating the farm or persons associated with operating the farm; and (ii)
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The buildings are on the same farmland as the project on either a tract of land contiguous with, or
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reasonably proximate to, such farmland or across a public way from such farmland.
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(10) “Hospital” means and shall be defined and established as set forth in chapter 17 of
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title 23.
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(11) “Multi-municipal collaborative” means a group of towns and/or cities that enter into
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an agreement for the purpose of co-owning a renewable-generation facility or entering into a
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financing arrangement pursuant to subsection (15).
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(12) “Municipality” means any Rhode Island town or city, including any agency or
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instrumentality thereof, with the powers set forth in title 45.
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(13) “Net metering” means using electrical energy generated by an eligible net-metering
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system for the purpose of self-supplying electrical energy and power at the eligible net-metering
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system site, or with respect to a community remote net-metering system, for the purpose of
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generating net-metering credits to be applied to the electric bills of the eligible credit recipients
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associated with the community net-metering system. The amount so generated will thereby offset
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consumption at the eligible net-metering system site through the netting process established in this

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chapter, or with respect to a community remote net-metering system, the amounts generated in
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excess of that amount will result in credits being applied to the eligible credit-recipient accounts
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associated with the community remote net-metering system.
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(14) “Net-metering customer” means a customer of the electric distribution company
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receiving and being billed for distribution service whose distribution account(s) are being net
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metered.
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(15) “Net-metering financing arrangement” means arrangements entered into by a public
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entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or a commercial
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or industrial customer with a private entity to facilitate the financing and operation of a net-metering
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resource, in which the private entity owns and operates an eligible net-metering resource on behalf
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of a public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or
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commercial or industrial customer, where: (i) The eligible net-metering resource is located on
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property owned or controlled by the public entity, educational institution, hospital, municipality,
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multi-municipal collaborative, or commercial or industrial customer as applicable; and (ii) The
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production from the eligible net-metering resource and primary compensation paid by the public
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entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or commercial or
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industrial customer to the private entity for such production is directly tied to the consumption of
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electricity occurring at the designated net-metered accounts.
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(16) “Nonprofit” means a nonprofit corporation as defined and established through chapter
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6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. §
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501(d).
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(17) “Person” means an individual, firm, corporation, association, partnership, farm, town
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or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or
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any department of the state government, governmental agency, or public instrumentality of the
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state.
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(18) "Portable solar generation device" means a moveable photovoltaic generation device
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that:
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(i) Has a maximum power output of not more than one thousand two hundred watts
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(1,200W);
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(ii) Is designed to be connected to a building's electrical system through a standard one
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hundred twenty volt (120V) alternating current outlet;
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(iii) Is intended primarily to offset part of the customer's electricity consumption;
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(iv) Meets the standards of the most recent version of the National Electrical Code; and
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(v) Is certified by Underwriters Laboratories or an equivalent nationally recognized testing

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laboratory.
2

(18)
(19)
“Preferred site” means a location for a renewable energy system that has had prior
3
development, including, but not limited to: landfills, gravel pits and quarries, highway and major
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road median strips, brownfields, superfund sites, parking lots or sites that are designated
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appropriate for carports, and all rooftops including, but not limited to, residential, commercial,
6
industrial, and municipal buildings.
7

(19)
(20)
“Project” means a distinct installation of an eligible net-metering system or a
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community remote net-metering system. An installation will be considered distinct if it is installed
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in a different location, or at a different time, or involves a different type of renewable energy.
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Subject to the safe-harbor provisions in § 39-26.4-3(a)(1), new and distinct projects cannot be
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located on adjoining parcels of land within core forests, except for preferred sites.
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(20)
(21)
“Public entity” means the federal government, the state of Rhode Island,
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municipalities, wastewater treatment facilities, public transit agencies, or any water distributing
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plant or system employed for the distribution of water to the consuming public within this state
15
including the water supply board of the city of Providence.
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(21)
(22)
“Public entity net-metering system” means a system generating renewable energy
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at a property owned or controlled by the public entity that is participating in a net-metering
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financing arrangement where the public entity has designated accounts in its name to receive net-
19
metering credits.
20

(22)
(23)
“Renewable net-metering credit” means a credit that applies to an eligible net-
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metering system or a community remote net-metering system up to one hundred percent (100%) of
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either the renewable self-generator’s usage at the eligible net-metering system site or the sum of
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the usage of the eligible credit-recipient accounts associated with the community remote net-
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metering system over the applicable billing period. This credit shall be equal to the total kilowatt
25
hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the
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sum of the eligible credit-recipient account usage during the billing period multiplied by the sum
27
of the distribution company’s:
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(i) Last resort service kilowatt-hour charge for the rate class applicable to the net-metering
29
customer, except that for remote public entity and multi-municipality collaborative net-metering
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systems that submit an application for an interconnection study on or after July 1, 2017, and
31
community remote net-metering systems, the last resort service kilowatt-hour charge shall be net
32
of the renewable energy standard charge or credit;
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(ii) Distribution kilowatt-hour charge;
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(iii) Transmission kilowatt-hour charge; and

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(iv) Transition kilowatt-hour charge.
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For projects after April 15, 2023, subject to the allowable two hundred seventy-five
3
megawatts alternating current (275 MWac), under § 39-26.4-3(a)(1)(vi), the credit shall be reduced
4
by twenty percent (20%).
5
Notwithstanding the foregoing, except for systems that have requested an interconnection
6
study for which payment has been received by the distribution company, or if an interconnection
7
study is not required, a completed and paid interconnection application, by December 31, 2018, the
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renewable net-metering credit for all remote public entity and multi-municipal collaborative net-
9
metering systems shall not include the distribution kilowatt-hour charge commencing on January
10
1, 2060.
11

(23)
(24)
“Renewable self-generator” means an electric distribution service customer of
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record for the eligible net-metering system or community remote net-metering system at the eligible
13
net-metering system site which system is primarily designed to produce electrical energy for
14
consumption by that same customer at its distribution service account(s), and/or, with respect to
15
community remote net-metering systems, electrical energy which generates net-metering credits to
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be applied to offset the eligible credit-recipient account usage.
17

(24)
(25)
“Third party” means and includes any person or entity, other than the renewable
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self-generator, who or that owns or operates the eligible net-metering system or community remote
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net-metering system on the eligible net-metering system site for the benefit of the renewable self-
20
generator.
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(25)
(26)
“Third-party, net-metering financing arrangement” means the financing of
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eligible net-metering systems or community remote net-metering systems through lease
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arrangements or power/credit purchase agreements between a third party and renewable self-
24
generator, except for those entities under a public entity net-metering financing arrangement. A
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third party engaged in providing financing arrangements related to such net-metering systems with
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a public or private entity is not a public utility as defined in § 39-1-2.
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SECTION 2. Chapter 39-26.4 of the General Laws entitled "Net Metering" is hereby
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amended by adding thereto the following section:
29

39-26.4-3.1. Portable solar generation device -- Exemptions -- Requirements.

30

(a) A portable solar generation device that meets the requirements of this chapter is exempt
31
from:
32

(1) interconnection standards and utility technical requirements; and
33

(2) requirements for submission of a complete interconnection application to the electric
34
distribution company, along with proof of system eligibility, permits, and technical compliance,

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leading to an approved agreement before grid connection; and
2

(3) is not subject to the net metering program requirements under this chapter.
3

(b) A portable solar generation device shall include a device or feature that prevents the
4
system from energizing the building's electrical system during a power outage.
5

(c) An electrical distribution company:
6

(1) May not require a customer using a portable solar generation device to:
7

(i) Obtain the electrical corporation's approval before installing or using the system;
8

(ii) Pay any fee or charge related to the system; or
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(iii) Install any additional controls or equipment beyond what is integrated into the system;
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(iv) Is not liable for any damage or injury caused by a portable solar generation device.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING -- PORTABLE
SOLAR GENERATION DEVICES
***
1
This act would exclude portable solar generation devices intended primarily to offset part
2
of a customer's electricity consumption from the definition of eligible net-metering system.
3
This act would take effect upon passage.
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LC003849
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