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Municipal officials urge legislature to restore 20‑year net‑metering terms to secure financing
Summary
Senate Bill 538FN would grandfather municipal ‘host’ net‑metering projects into 20‑year compensation terms for projects started by Dec. 31, 2031. Municipal and county officials said the guarantee is necessary to secure financing and protect expected taxpayer savings; the Department of Energy flagged risk shifting to ratepayers and potential staffing needs to process applications.
Senate Bill 538FN seeks to reinstate a limited grandfathering window for municipal net‑metering hosts so projects that begin construction or financing within a five‑year window can obtain a 20‑year compensation term. Supporters told the Science, Technology and Energy Committee they need predictable 20‑year terms to secure bank financing and to make municipal pro‑formas work; several municipalities, counties and municipal associations described planned landfill and municipal array projects that depend on the longer term to be financially viable.
John Taber (Portsmouth), county officials and municipal energy committee members said the 20‑year term materially affects bond underwriting and long‑term cash‑flow assumptions. County witnesses described multi‑year revenue impacts they would lose without the extended terms. Clean Energy New Hampshire and the Conservation Law Foundation said evidence shows net‑metering projects can provide system value — citing ISO‑NE and VDER data — while DOE testified the PUC previously shifted from a rolling 20‑year eligibility to a 2040 date certain in docket DE22060 and warned of risk transfer from developers to other ratepayers if the state guarantees 20‑year compensation.
DOE said the department is neutral but expects additional administrative workload and may need at least one additional full‑time employee to process any increase in applications. The bill would allow eligible customer generators to switch to newer tariffs if they become available, and sponsors limited the grandfathering window to projects that meet criteria by Dec. 31, 2031. The committee heard extensive public comment in favor of the change, including examples of municipal projects that estimated six‑figure annual savings once operational.
The committee did not adopt final action on SB 538FN at the April 6 hearing; sponsors and agencies are expected to provide technical amendments and fiscal clarifications before any vote.
