Law raises ‘net-metering’ cap by 1%

On Aug. 6, the governor signed a modest solar energy bill that raises the “net-metering” cap by 1 percent, a change that will enable some proposed municipal solar projects to move forward.

The net-metering provision in the Green Communities Act allows local governments to obtain credits, at a fair market price, from utilities for a portion of the electricity they generate from solar panels and other small renewable energy sources.

The net-metering cap was set at 2 percent when the Green Communities Act became law six years ago, meaning that renewable sources would account for no more than 2 percent of a utility’s total capacity. The cap was increased to 3 percent last year, but some municipalities were still finding that the cap was keeping them from being able to move forward on otherwise financially viable projects.

The solar bill, which was passed by the House and Senate on July 31, raises the cap on public projects from 3 percent to 5 percent of a utility’s total power generation, while raising the cap for private projects to 4 percent. The Legislature did not take action, however, on a proposed comprehensive overhaul of the state’s net metering allocation system for renewable energy projects.

A panel of representatives from utilities, the administration and the solar industry had drafted a comprehensive bill that would have lifted the cap entirely. Instead, the Legislature created a task force to study the long-term feasibility of net metering in Massachusetts.

Small-scale solar dealers and installers expressed concerns about not having a seat at the table during the negotiations, and some utility companies expressed concerns about the costs associated with the removal of a cap on power purchased from renewable projects.