S 2797Renewable Energy

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

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

Introduced

Population
Affected

Introduced Mar 4, 2026Committee Senate Environment & Agriculture

Plain-English Summary

This legislation introduces a ban on several renewable energy practices and incentives in Rhode Island. Specifically, it prohibits the renewal or creation of net metering contracts, which currently allow property owners to receive credit for electricity generated by solar panels. It also prevents the state from entering into long-term contracts (defined as longer than five years) to purchase solar or wind energy. Furthermore, the bill forbids the use of any state funds to subsidize the purchase or installation of heat pumps.

For younger readers

This new law stops the state government from helping to pay for certain energy machines. First, it says that people can no longer make new deals to sell the extra electricity from their home solar panels back to the power company. Second, the state is not allowed to sign long contracts to buy power from wind or sun energy companies. Third, the government cannot give anyone money to help them buy "heat pumps," which are machines used to heat and cool homes.

Who & Where It Applies

Impacted groups

Solar energy companiesHomeownersHVAC contractorsUtility companiesEnvironmental advocates

Impacted communities

All

Constitutional & Fiscal Check

The bill prohibits entering into "any" customer-sited energy contracts. While states have broad authority to regulate public utilities, a total ban on specific types of private contracts might face challenges regarding the Liberty of Contract under the Due Process Clause, though this doctrine is rarely successful today. If interpreted to cancel existing contracts, it would violate the Contract Clause, but the text specifies "renew or enter into," implying forward-looking application.

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Could potentially lower electricity rates for low-income renters who do not own homes and therefore cannot utilize net metering, yet currently help subsidize the infrastructure for those who do.
Prevents the state from being locked into long-term contracts with large corporate energy providers, theoretically allowing for flexibility if more efficient or community-owned energy solutions become available.
Might discourage the clear-cutting of forests or green spaces for industrial-scale solar or wind farms by removing the security of long-term state purchasing guarantees.
Severely undermines the state's efforts to combat climate change and reduce carbon emissions by halting the expansion of solar and wind energy adoption.
Eliminates financial support for heat pumps, making energy-efficient heating and cooling unaffordable for working-class families and leaving them reliant on expensive fossil fuels.
Destroys the financial incentive for homeowners and small businesses to install solar panels, which will likely lead to job losses in the local green energy sector.

For Conservatives

Eliminates government subsidies for heat pumps, thereby reducing state spending and preventing taxpayer funds from distorting the free market for heating equipment.
Protects taxpayers/ratepayers from the financial risks associated with long-term government contracts for renewable energy, which can be volatile or less efficient than traditional sources.
Ends the practice of net metering, ensuring that traditional utility customers are not forced to cross-subsidize the grid costs of those with private solar installations.
Restricts the freedom of private property owners and utility companies to negotiate their own energy contracts without government interference.
Limits the ability of the state to secure potentially low-cost energy deals in the future if solar or wind becomes the cheapest option on the market.
Could negatively impact local small business owners and independent contractors who specialize in HVAC and solar installations, potentially hurting the local economy.

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.