An Act To Clarify Tariff Rates For Nonresidential Customers Participating In Net Energy Billing With A Distributed Generation Resource

LD 1777 sets new payment rates for businesses and other nonresidential customers in Maine who generate electricity from solar panels or similar systems (distributed generation resources) and send excess power to the grid under net energy billing. For systems over 1 megawatt, the payment rate equals the utility's standard rate for the customer plus 75% of transmission/distribution costs for small commercial customers, with exceptions for projects that began construction before September 2022 or are collocated with a customer using at least half the output. Smaller systems (1 megawatt or less) receive a base rate calculated from 2020 utility rates, increasing by 2.25% annually starting in 2023. The bill also caps all rates at 1.5 times the average rate in neighboring states to ensure fairness and competitiveness, with changes effective January 1, 2026.