Distributed Generation Standard Contracts

This program is no longer offered. It has been superseded by the Renewable Growth Program. NOTE: The third enrollment period for standard contracts for 2014 closed on November 7. Rhode Island enacted legislation (H.B. 6104) in June 2011 establishing a feed-in tariff for new distributed renewable energy generators up to three megawatts (MW) in capacity. The law requires electric distribution companies to enter into standard contracts for an aggregate capacity of at least 40 MW by the end of 2014. Standard contracts include a fixed payment rate and a 15-year term, and generally vary by generator capacity and type. Eligible renewables include solar energy, wind energy, ocean-thermal energy, geothermal energy, small hydropower, biomass facilities that maintain compliance with current air permits,* and fuel cells using renewable resources. Separate classes have been established for “large” generators and “small” generators. Small generators include solar energy systems between 50 kilowatts (kW) and 500 kW, and wind energy systems between 50 kW and 1.5 MW. The Distributed Generation Standard Contract Board will determine capacity limits for other “small” systems, but limits may not exceed 1 MW. (The Board is authorized to modify this program in several ways, as specified in the authorizing legislation.) Payment rates vary by system size and type. The contracting period is spread over four years. The following annual minimum targets for standard contracts have been established: By December 30, 2011: 5 MW of aggregate capacity By December 30, 2012: 20 MW of aggregate capacity By December 30, 2013: 30 MW of aggregate capacity By December 30, 2014: 40 MW of aggregate capacity The Board must set ceiling prices by October 15 for the following calendar year. Each electric distribution company must conduct one standard contract enrollment period in 2011 and at least three enrollment periods in subsequent program years. Each enrollment period will be open for two weeks. Eligible small and large projects will be assessed separately, and projects from each class will be awarded standard contracts based on the lowest proposed prices received. Eligible systems that are net-metered may apply to sell excess output. * Waste-to-energy combustion systems are explicitly excluded.