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Sen. David Waters seeks 20‑year net‑metering guarantee for municipal projects; DOE warns of cost and administrative tradeoffs

Energy and Natural Resources Committee · January 14, 2026

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Summary

Sen. David Waters introduced SB 538 to ensure a 20‑year net‑metering eligibility term (or the longer of 20 years or a future tariff) for municipal group host projects to restore financing certainty; the Department of Energy reported neutrality but raised concerns about a rolling 20‑year legacy and cost shifting, while industry witnesses warned of a market retreat without clarity.

Senator David Waters introduced Senate Bill 538 to extend or clarify net‑metering eligibility terms for municipal group host projects so that projects receive a 20‑year eligibility period from the project’s first year of compensation (or the longer of 20 years or eligibility through 01/01/2040). Waters told the committee the change is intended to grandfather projects in the pipeline and restore bankable certainty for municipal projects in towns including Pelham, Wilton, Concord and others.

The Department of Energy said it was neutral but raised policy concerns about moving from a date‑certain legacy period (through 2040) to a rolling 20‑year guarantee from each project’s online date. Deputy Commissioner Chris Elms described administrative complexity in tracking rolling terms for each project, potential cost‑shifting to nonparticipants, and the risk that a long rolling guarantee constitutes a form of long‑term subsidy to developers.

Industry witnesses and local governments said the measure is a narrow fix for projects stalled by regulatory and interconnection delays. Nick Paul (Clean Energy NH) testified that projects are leaving the state and cited an industry check that he said found roughly 274 megawatts of projects abandoned and about a dozen solar firms exiting New Hampshire; he said municipal projects need bankable certainty to secure financing. Jim Monahan (DuPont Group) and representatives of counties and towns said they supported a targeted grandfathering approach and offered to work with DOE on technical fixes. Senator Pearl proposed a possible five‑year sunset as a compromise; supporters said they would consider the suggestion.

The committee closed the hearing with no recorded committee vote on SB 538; sponsors and stakeholders indicated a willingness to continue technical work with DOE and other parties.