Governor Submits Budget Amendment Finalizing $1 Billion Energy Relief Plan
Published on Wednesday, April 29, 2026
Revised Virtual Net Metering Proposal Saves Ratepayers Up to $258 Million While Protecting Operating Projects
PROVIDENCE, RI — Governor Dan McKee today submitted a budget amendment revising the FY27 proposal governing large-scale solar projects under Rhode Island's Virtual Net Metering (VNM) program. The revised proposal delivers a more cost-effective program that will save ratepayers up to $258 million over five years. With this submission, the Governor's $1 billion ratepayer relief plan is finalized and before the General Assembly.
“The biggest hardship I hear from Rhode Islanders right now is their growing energy bills,” said Governor McKee. “This proposal protects the projects that are already up and running, aligns our solar program with the region, and gets us one step closer to delivering $1 billion in real relief to the families and businesses who need it most.”
In developing these refinements, pursuant to the Governor’s Executive Order 26-01, the Administration engaged with a broad range of stakeholders, including representatives of labor, residential and commercial solar developers, and consumer interests, and received support for this proposal from numerous solar developers, including Nautilus Solar Energy, Ameresco, Dispatch Energy, CleanCapital, Altus Power, and Nexamp.
The revised solar proposal:
- Protects existing projects and offtakers: The proposal is fully voluntary for operating projects and projects in the queue. All eligible projects can remain on the current compensation structure with no changes, ensuring existing contracts and revenue streams are preserved. (Offtakers include but are not limited to municipalities, universities, school districts, and hospitals).
- Adds a predictable, fixed-rate option: A new voluntary, opt-in compensation structure starts at $0.19/kWh with a 2.75% annual escalator for a 25-year term, providing long-term price certainty for developers and offtakers while lowering costs for ratepayers by hundreds of millions.
- Improves cost-effectiveness going forward: The proposal lowers the VNM cap to 125 MW and transitions future projects to the Renewable Energy Growth program, which is more cost-effective and better aligned with neighboring states’ approaches.
The Governor’s budget amendment also clarifies the initial proposal’s approach to adding lower-cost nuclear and large-scale hydropower to reduce Renewable Energy Standard (RES) costs by establishing a separate Clean Energy Standard tier, aligning Rhode Island with other states, and simplifying implementation.
Neither the Governor’s initial proposal nor these revisions apply to residential rooftop solar.
With this latest amendment, the Governor has submitted his full proposal to the General Assembly to lower utility bill charges by $1 billion over the next five years. In addition to the reforms in the budget amendment, those actions include:
- Reforming the RES by aligning the schedule with the Act on Climate and expanding eligibility to lower-cost clean resources like nuclear and large-scale hydropower, reducing a charge that would otherwise triple for ratepayers by 2031.
- Aligning energy efficiency spending with neighboring states, bringing a program that has grown out of step with the region back in line with what Connecticut and New York spend.
- Eliminating bonus payments to utility shareholders, ending a cost built into current rate structures that ratepayers should not be bearing.
- Reforming utility paving requirements, reducing an immediate cost driver that is adding unnecessary pressure to the delivery charges.