H 7177Renewable Energy

Public Utilities and Carriers - Moratorium on Net Metering, Long-Term Contracts and Subsidies for Heat Pumps

This bill bans new net metering contracts, state long-term solar/wind contracts, and state subsidies for heat pumps starting in 2027.

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Introduced Jan 21, 2026Committee House Corporations

Plain-English Summary

This legislation enacts a moratorium on several state energy initiatives and contracts. Specifically, it prohibits the renewal or creation of net metering contracts, which allow individuals to generate their own electricity (often via solar) and offset their utility bills. It also bans the State of Rhode Island from entering into long-term contracts (defined as exceeding five years) for purchasing solar or wind energy. Furthermore, the bill forbids the use of state funds to subsidize the purchase or installation of heat pumps. These provisions are scheduled to take effect on January 1, 2027.

For younger readers

This new law changes how the state handles energy and electricity. Starting in the year 2027, three main things will happen. First, people will no longer be allowed to sign new agreements to sell their extra home-made power (like from solar panels) to the electric company. Second, the state government is not allowed to sign long contracts to buy wind or solar power. Third, the government will stop giving people money to help them buy "heat pumps," which are machines used to heat and cool homes.

Who & Where It Applies

Impacted groups

Solar energy companiesWind energy providersHomeownersHVAC contractorsUtility companies

Impacted communities

All

Constitutional & Fiscal Check

The bill prohibits "any right to renew... any net metering contracts." If interpreted to retroactively annul renewal options in existing private contracts, this could violate the Contract Clause of the U.S. Constitution (Article I, Section 10). Additionally, the broad prohibition on "customer sited... energy contracts" could be challenged as an excessive burden on interstate commerce or a violation of economic due process, though courts generally defer to state economic regulation.

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Prevents state funds from subsidizing expensive heat pump systems for wealthy homeowners, potentially allowing those resources to be redirected toward direct financial assistance for low-income residents.
Addresses the potential "cost shift" in utility rates where non-solar customers, who are often lower-income renters, may pay higher rates to maintain the grid while solar owners avoid these costs through net metering.
Stops the state from locking into rigid long-term contracts with large corporate energy providers, potentially keeping options open for future community-owned or public energy solutions.
Severely hinders the state's ability to combat climate change by prohibiting the government from purchasing renewable wind and solar energy, directly contradicting environmental justice goals.
Eliminates financial support for heat pumps, making energy-efficient heating and cooling inaccessible to working-class families and increasing reliance on fossil fuels.
Destroys the incentive structure for residential renewable energy generation, preventing individuals and communities from achieving energy independence and lowering their carbon footprint.

For Conservatives

Reduces government spending and taxpayer burden by eliminating state subsidies for the purchase and installation of heat pumps.
Prevents the government from distorting the free market by "picking winners" through the use of long-term contracts with specific solar and wind energy providers.
Ends net metering mandates that force utility companies to credit customer-generated power at set rates, allowing for a more market-driven approach to energy pricing.
Restricts the freedom of contract by legally prohibiting the state and utility companies from entering into specific types of voluntary agreements for energy purchasing.
Infringes on the property rights of homeowners and business owners by effectively preventing them from maximizing the economic value of their private solar energy investments through net metering.
Limits the government's ability to negotiate potentially cost-saving long-term energy deals, essentially tying the hands of future administrations regardless of market conditions.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 24 additions

SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND CARRIERS" is hereby amended by adding thereto the following chapter: 39-36-1. Definitions. As used in this chapter the following words and phrases shall have the following meanings:

(1) “Heat pump” means any device that transfers heat using mechanical energy;

(2) “Long-term contract” means any contract in excess of five (5) years;

(3) “Net metering” means using electrical energy generated by an eligible net-metering system for the purpose of self-supplying electrical energy and power at the eligible net-metering system site;

(4) “Solar energy” means a form of renewable energy that harnesses the power of the sun to generate electricity;

(5) “Wind energy” means a form of renewable energy that harnesses the power of the wind to generate electricity. 39-36-2. Moratorium related to net metering, long-term contracts and subsidies.

(a) Notwithstanding any other provisions of the general laws to the contrary including, but not limited to, chapter 26.4 of title 39, any right to renew or enter into any net metering contracts that are regulated by state law and no customer sited and/or grid-connected power generated energy contracts shall be permitted under any provision of the general laws.

(b) Notwithstanding any other provisions of the general laws to the contrary, including, but not limited to the provisions of chapter 26.1 of title 39, the State of Rhode Island is hereby prohibited from entering into any long-term contracts for the purchasing of solar or wind energy with any energy provider.

(c) Notwithstanding any other provisions of the general laws to the contrary, including, but not limited to, the provisions of chapter 27 of title 39, and notwithstanding any program utilized by the office of energy resources for the State of Rhode Island, no state funds shall be used to subsidize the purchase or installation of heat pumps provided by any utility or governmental agency.

SECTION 2. This act shall take effect on January 1, 2027.