Rhode Island
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 07/21/2009
| Incentive Type: |
Net Metering |
| State: |
Rhode Island |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Wind
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
Agricultural,
Institutional
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| Applicable Utilities: | Investor-owned utilities |
| System Capacity Limit: | 3.5 MW for municipalities and Narragansett Bay Commission; 2.25 MW for certain systems serving municipalities; 1.65 MW for all other systems |
| Aggregate Capacity Limit: | 2% of utility's peak load (1 MW reserved for systems under 25 kW) |
| Net Excess Generation: | Customers have an option to either accumulate excess generation to the next bill (for 12-months) or receive monthly compensation (via check) for excess generation. Certain customer classes have a third option to apply excess generation to up to 10 other accounts during a billing period. |
| REC Ownership: | Not addressed |
| Meter Aggregation: | Allowed for certain customer classes |
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Web Site: |
http://www.energy.ri.gov/policy/index.php
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Authority 1:
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R.I. Gen. Laws § 39-1-27.7
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| Date Enacted: | 2006 |
| Date Effective: | 2006 |
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Authority 2:
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R.I. Gen. Laws § 39-26-6
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| Date Enacted: | 7/2/2007 (subsequently amended) |
| Date Effective: | 7/2/2007 |
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Authority 3:
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Rhode Island PUC Order, Docket No. 3999
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| Date Enacted: | 03/11/2009 |
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Authority 4:
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SB 485
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| Date Enacted: | 07/09/2009 |
| Date Effective: | 06/01/2009 (retroactive) |
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Summary:
The summary below describes net metering in Rhode Island pursuant to legislative changes made in July 2009 (with the passage of SB 485). The Rhode Island Public Utilities Commission must amend its rules to incorporate these changes.
Net metering is available to customers that generate electricity using solar or wind resources. The maximum individual system capacity is limited to 3.5 megawatts (MW) for systems owned by cities, towns or the Narragansett Bay Commission; 2.25 MW for systems developed but not owned by cities and towns, sited on land owned by the city or town, and providing power solely to the city or town; and 1.65 MW for other customers. The aggregate limit on net metering is 2% of peak load, provided that at least 1 MW is reserved for projects less than 25 kW.
If a net-metered customer generates excess electricity during a billing period, a customer has an option to 1) have the net excess generation (NEG) credited to the customer’s next billing period at a rate that is slightly less than the utility’s retail rate; or 2) receive compensation in the form of a monthly check for NEG. If the customer chooses to roll-over NEG to his/her next billing period, he/she must inform the electric utility of that choice. Cities, towns, schools, farms, non-profit affordable housing agencies, state agencies, and the Narragansett Bay Commission (NBC) may either receive 1) compensation in the form of a monthly check for NEG or 2) they may apply NEG to another account owned by that entity (up to ten accounts). If the non-profit affordable housing agency chooses compensation, they are obligated to use the money to benefit the residents. If NEG is rolled-over, at the end of a 12-month period, any remaining NEG shall be used to offset recoverable utility costs.
The Public Utilities Commission (PUC) has approved an interconnection tariff for National Grid customers that generate electricity using net-metered systems and certain other forms of distributed generation (DG).
History
In August 1998, the Rhode Island Public Utilities Commission (PUC) issued an order (Docket 2710) requiring Narragansett Electric (now known as National Grid), an investor-owned utility that serves 99% of the state's mainland customers, to offer net metering to all customers generating electricity using renewable-energy systems with a maximum capacity of 25 kilowatts (kW). In 2006, Rhode Island enacted legislation that allows the PUC to establish standards for net metering. Legislation enacted in July 2007 (H.B. 5566) and July 2008 (H.B. 7809) significantly expanded the availability and appeal of net metering in Rhode Island. Legislation passed in July 2009 further improved net metering in Rhode Island by offering the choice of monthly compensation of indefinite roll-over of NEG for regular customers and meter aggregation (up to 10 meters) for cities, towns, schools, farms, non-profit affordable housing, and NBC.
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Contact:
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Consumer Information
Rhode Island Public Utilities Commission
89 Jefferson Boulevard
Warwick, RI 02888
Phone: (401) 941-4500
Fax: (401) 277-6805
Web Site: http://www.ripuc.state.ri.us
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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