Senate Bill No. 420 - Summary

• Increases the capacity limit for customer-owned renewable energy generation systems from 100 kilowatts to 200 kilowatts for net metering eligibility.

• Changes net metering credit structure to allow excess energy credits to accumulate month-to-month at a 1:1 ratio (instead of being paid at avoided fuel costs), with credits expiring by the end of the March billing period in each 12-month cycle.

• Extends the interconnection application review period from 30 to 45 days for systems 26 kilowatts or less and establishes a one-year completion deadline after approval.

• Authorizes electrical corporations to recover all prudently incurred net metering costs through a regulatory asset tracked on their books, to be amortized over three years in the next general rate proceeding.

• Modifies the renewable energy portfolio standard to escalate requirements to 15% by 2021, with solar rebates declining from $2/watt (2014) to $0/watt (after June 30, 2018), and allows utilities to suspend rebates if the 1% rate cap is reached.