An Act To Protect and Expand Access to Solar Power in Maine
Maine Legislature, Session 128, LD 1373
Committee: Energy, Utilities and Technology
Sponsors: BERRY, DENNO, DION, ACKLEY, MAREAN, POULIOT, RYKERSON, SEAVEY, DOW, JACKSON
Amends: 35-A MRSA §3209-A, 35-A MRSA §3475

Legislative Document
No. 1373
H.P. 952
House of Representatives, April 11, 2017
An Act To Protect and Expand Access to Solar Power in Maine
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative BERRY of Bowdoinham.
Cosponsored by Representative DENNO of Cumberland, Senator DION of Cumberland and
Representatives: ACKLEY of Monmouth, DeCHANT of Bath, MAREAN of Hollis, 
POULIOT of Augusta, RYKERSON of Kittery, SEAVEY of Kennebunkport, Senators: DOW 
of Lincoln, JACKSON of Aroostook.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3209-A, as enacted by PL 2011, c. 262, §1, is repealed and 
the following enacted in its place: 
§3209-A.  Net energy billing 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Eligible facility" means an electric generating facility that uses a renewable 
capacity resource as defined in section 3210, subsection 2, paragraph B-3 or is an 
efficient combined heat and power system as defined in section 3201, subsection 7-A 
and that: 
(1)  In an investor-owned transmission and distribution utility territory, does not 
have an installed capacity greater than 2 megawatts; or 
(2)  In a consumer-owned transmission and distribution utility territory, does not 
have an installed capacity greater than 100 kilowatts unless the consumer-owned 
utility elects, pursuant to rules adopted by the commission, to allow an eligible 
facility to have an installed capacity of up to 2 megawatts. 
B.  "Net energy billing" means a billing and metering practice under which a 
customer is billed on the basis of net usage over the billing period, taking into 
account accumulated unused kilowatt-hour credits from previous billing periods. 
C.  "Shared ownership" means a shared financial interest as defined by the 
commission of an eligible facility by multiple persons who have distinct billing 
accounts with a transmission and distribution utility. 
D.  "Third-party ownership" means ownership of an eligible facility by a party other 
than the customer of a transmission and distribution utility whose billing account 
receives net energy billing credits. 
2.  Net energy billing.  A customer of a transmission and distribution utility may 
elect net energy billing in accordance with this section and rules adopted by the 
commission.  A transmission and distribution utility may not charge any fee or 
assessment to a customer that elects to use net energy billing. 
A.  A customer who elects net energy billing must receive bill credits per kilowatt-
hour of electricity generated equal to the customer's transmission and distribution and 
generation service rates per kilowatt-hour. 
B.  Unused bill credits expire 12 months from when they are received. 
C.  The commission by rule shall permit eligible facilities with shared ownership or 
3rd-party ownership to be eligible for net energy billing.  The commission may not 
limit the number of participants in a shared ownership project but may set a minimum 
share size. 
3.  Cost and benefits review.  The commission shall undertake a comprehensive 
review of the ratepayer costs and benefits from net energy billing within an investor-
owned transmission and distribution utility's territory in accordance with this subsection.  
The review must be conducted when an investor-owned transmission and distribution 
utility enters into net energy billing agreements for a total generating capacity of: 
A.  Five percent of its annual peak demand; 
B.  Eight percent of its annual peak demand; and 
C.  Every additional 3% of its annual peak demand beyond 8%. 
The commission shall consider all identifiable costs and benefits over multiple time 
periods.  The commission shall consider any costs of net energy billing separately from 
the reduced purchase of electricity from transmission and distribution utilities arising 
from generation by the customer. 
4.  Rules.  The commission shall adopt rules governing net energy billing in 
accordance with this section.  Rules adopted pursuant to this section are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 2.  35-A MRSA §3475 is enacted to read: 
§3475.  Solar energy rebate program; fund 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Eligible commercial customer" means a customer of a transmission and 
distribution utility located in the State that is an owner or tenant of commercial 
property located in the State, including but not limited to nonresidential property that 
is owned by a municipality or a not-for-profit organization. 
B.  "Eligible resident" means a resident of the State whose household income is less 
than 200% of the median household income of the State. 
C.  "Eligible 3rd-party owner" means an owner of a qualified solar energy system 
located in the State that is connected to the electric meter of an eligible resident or 
eligible commercial customer. 
D.  "Low-income or moderate-income resident" means an eligible resident whose 
household income is less than 100% of the median household income in the State. 
E.  "Qualified solar energy system" means a solar photovoltaic system or a solar 
thermal system that is installed after July 1, 2017. 
F.  "Qualified solar photovoltaic system installer" means a person who has been 
qualified by the Efficiency Maine Trust to install solar photovoltaic systems designed 
to generate electricity and who holds all necessary licenses for such work from the 
State. 
G.  "Qualified solar thermal system installer" means a person who has been qualified 
by the Efficiency Maine Trust to install solar thermal systems and who holds a 
current license from the State as a master plumber, as a master oil burner technician 
or as a propane and natural gas technician or has been certified as a type II, type III or 
universal heating, ventilation and air conditioning refrigeration technician through a 
certification program approved by the United States Environmental Protection 
Agency. 
H.  "Solar photovoltaic system" means a solar energy device with a peak generating 
capacity of 200 kilowatts or less used for generating electricity for use in a residence 
or place of business that is connected to the electric grid. 
I.  "Solar thermal system" means a configuration of solar collectors and a pump, heat 
exchanger and storage tank or fans designed to heat water or air for the purpose of 
space heating, domestic water heating or both space and domestic water heating. 
Solar thermal system types may include forced circulation, integral collector storage, 
thermosyphon and self-pumping systems. 
2.  Solar energy rebate program.  The Efficiency Maine Trust shall administer a 
solar energy rebate program.  To the extent that funds are available in the fund 
established in subsection 3, an eligible resident, eligible commercial customer or eligible 
3rd-party owner is entitled to a rebate for the installation of a qualified solar energy 
system in accordance with this section and rules adopted under this section. 
A.  After accounting for any allocation for administrative costs pursuant to subsection 
3, in each fiscal year the trust shall allocate 40% of available funds for eligible 
commercial customers, 20% of available funds for low-income or moderate-income 
residents and 40% of available funds for other eligible residents.  At the end of the 
trust's fiscal year, the trust may reallocate any unexpended funds according to this 
formula. 
B.  The trust shall set rebate levels for qualified solar energy systems according to the 
following requirements. 
(1)  From the effective date of this section to June 30, 2019, the rebate for eligible 
residents may not exceed 12% of the cost of installation and the rebate for 
eligible commercial customers may not exceed the lower of 12% of the cost of 
installation or $50,000. 
(2)  For the period from July 1, 2019 to June 30, 2022, the rebate for eligible 
residents may not exceed 10% of the cost of installation and the rebate for 
eligible commercial customers may not exceed the lower of 10% of the cost of 
installation or $40,000. 
(3)  Rebates for low-income or moderate-income residents may not exceed 25% 
of the cost of installation for projects that are eligible for federal renewable 
energy tax credits or 45% of the cost of installation for projects that are not 
eligible for federal renewable energy tax credits. 
C.  Third-party owners are eligible to receive a rebate on behalf of eligible residents 
or eligible commercial customers in accordance with paragraphs A and B. 
D.  To qualify for a rebate, a qualified solar energy system must be installed by a 
qualified solar photovoltaic system installer or a qualified solar thermal system 
installer. 
E.  For the purposes of determining household income for eligible residents, the trust 
may rely on a signed affidavit or affirmation by the applicant attesting to the 
applicant's household income as filed under state or federal tax returns.  The trust 
shall assess the accuracy of income claims through random verification with the 
Department of Administrative and Financial Services, Maine Revenue Services of no 
less than 5% of rebate applications. 
F.  The trust may elect to distribute rebates for low-income or moderate-income 
residents through agreements with one or more providers of affordable housing 
development or services, as long as the trust does so through a public selection 
process and is reasonably confident that participating households are likely to meet 
the definition of low-income or moderate-income residents. 
3.  Funding level; fund.  The commission shall assess transmission and distribution 
utilities to collect funds for the solar energy rebate program under subsection 2 in 
accordance with this subsection.  The assessments by the commission under this 
subsection must be in accordance with the following schedule: 
A.  For the period from July 1, 2017 to June 30, 2019, the assessment is 0.017 cent 
per kilowatt-hour; 
B.  For the period from July 1, 2019 to June 30, 2021, the assessment is 0.013 cent 
per kilowatt-hour; and 
C.  For the period from July 1, 2021 to June 30, 2022, the assessment is 0.008 cent 
per kilowatt-hour. 
The Efficiency Maine Trust shall establish a solar energy rebate program fund to be used 
solely for the purposes of this section.  The commission shall transfer all assessments 
made under this subsection to the trust to be deposited in the fund.  Any interest on funds 
in the fund must be credited to the fund.  Funds not spent in any fiscal year remain in the 
fund to be used for the purposes of this section only.  The trust may use up to 5% of the 
fund to cover the costs of verification of eligibility and administration of the solar energy 
rebate program. 
4.  Rules.  The Efficiency Maine Trust shall adopt rules necessary to implement the 
provisions of this section, including procedures and standards for demonstrating 
eligibility for a rebate under this section and for quality assurance protocols.  Rules 
adopted under this section are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
5.  Report.  The Efficiency Maine Trust shall report by December 31st of each year 
to the joint standing committee of the Legislature having jurisdiction over utilities and 
energy matters a description of actions taken by the trust pursuant to this section during 
the prior 12 months. 
SUMMARY 
This bill amends the laws governing net energy billing.  It prohibits a charge to a 
customer that elects to use net energy billing.  It provides specific provisions related to 
net energy billing including: 
1. It provides that customers using net energy billing receive bill credits netted 
against delivery and supply charges on a one-to-one basis; 
2. It provides that unused bill credits accumulate on a 12-month rolling basis; 
3. It limits the installed capacity of an eligible facility to 2 megawatts in the territory 
of an investor-owned transmission and distribution utility and to 100 kilowatts in the 
territory of a consumer-owned transmission and distribution utility, except that the 
consumer-owned transmission and distribution utility may elect to allow an eligible 
facility with installed capacity up to 2 megawatts; 
4. It allows an eligible facility with shared ownership or 3rd-party ownership to be 
eligible for net energy billing and prohibits the Public Utilities Commission from limiting 
the number of participants in a shared ownership project, but allows the commission to 
set a minimum share size; and 
5. It requires a comprehensive review of ratepayer benefits and costs from net 
energy billing when any investor-owned transmission and distribution utility in the State 
enters into net energy billing agreements for a total generating capacity equal to 5% of 
the annual peak demand and again for every additional 3% of the utility's annual peak 
demand thereafter. 
This bill also establishes a solar energy rebate program to be administered by the 
Efficiency Maine Trust. The program is to be funded through an assessment collected by 
the Public Utilities Commission from transmission and distribution utilities. Available 
funds are to be distributed in the following manner: 40% to eligible commercial 
customers, 20% to low-income or moderate-income residents and 40% to other eligible 
residents.  This bill requires the trust to adopt routine technical rules to administer the 
program and requires the trust to submit an annual report to the Legislature that describes 
the actions of the trust related to the rebate program.