HB 1718 — relative to authorizing energy storage in connection with net metering.

CHAPTER 309 HB 1718-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 19Feb2026...

Watters, Dist 4 COMMITTEE:

CHAPTER 309 HB 1718-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 19Feb2026...

1309:1 Limited Electrical Energy Producers Definitions.DefinitionsAmend RSA 362-A:1-a, II-b to read as follows:

Amend RSA 362-A:1-a, II-b to read as follows:

2309:2 New Paragraph;

3309:3 Customer Energy Storage Systems.

4309:4 New Paragraph;

HB 1718-FN - VERSION ADOPTED BY BOTH BODIES - Page 2 - XXIV.

The commission may determine terms and conditions for how a customer-generator may use and be compensated for exports to the grid from energy storage added to renewable energy CHAPTER 309 HB 1718-FN - FINAL VERSION - Page 2 - generation sources in conjunction with net metering and related tariff provisions.

The commission shall require such energy storage, if configured to allow electricity to be exported to the grid, to be charged only from such generation facility, unless charging is under the control of an entity other than the customer-generatorcustomer- generator or as otherwise authorized by the commission in an adjudicated proceeding.

5309:5 Customer Energy Storage;

6309:6 Customer Energy Storage Systems;

(b) New Hampshire's consumers of electricity have a right to install, interconnect, and use energy storage systems on their property, subject to appropriate size and safety requirements established by the [commission]department,[commission] department, without the burden of unnecessary restrictions or regulations and without unduly discriminatory rates or fees, provided that such storage systems conform to local zoning ordinances and building codes.

7309:7 Limited Electrical Energy Producers Definitions.AmendDefinitionsAmend RSA 362-A:1-a, II-b to read as follows:

HB309:8 1718-FN - VERSION ADOPTED BY BOTH BODIES - Page 3 - 8 New Paragraph;

The commission shall require such energy storage, if configured to allow electricity to be exported to the grid, to be charged only CHAPTER 309 HB 1718-FN - FINAL VERSION - Page 3 - from such generation facility, unless charging is under the control of an entity other than the customer-generatorcustomer- generator or as otherwise authorized by the commission in an adjudicated proceeding.

9309:9 Contingency.

10309:10 Effective Date.

LBAApproved: 26-3131 5/18/26 HB 1718-FN- FISCAL NOTE AS AMENDED BY THE SENATE (AMENDMENT # 2026-1909s) AN ACT relative to authorizing energy storage in connection with net metering.

FISCALJuly IMPACT:10, 2026 Effective Date:

ThisI. bill does not provide funding, nor does it authorize new positions.

EstimatedSections State1,4,7, Impact FY 2026 FY 2027 FY 2028 FY 2029 Revenue $0 $0 $0 $0 Revenue Fund(s) None Indeterminable Indeterminable Indeterminable Increase Increase Increase $64,000 $131,000+ $137,000+ (Utility (Utility (Utility Expenditures* $0 Assessments) Assessments) Assessments) Indeterminable Indeterminable Indeterminable Increase Increase Increase (State's utility (State's utility (State's utility costs) costs) costs) Funding Source(s) Utility Assessments under RSA 363-A:1, General Fund, Highway Fund, and Various8 Agencyeffective Fundsas Appropriations*provided $0in $0section $09 $0II. Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2026 FY 2027 FY 2028 FY 2029 County Revenue $0 $0 $0 $0 County Expenditures $0 Indeterminable Indeterminable Indeterminable Increase Increase Increase Local Revenue $0 $0 $0 $0 Local Expenditures $0 Indeterminable Indeterminable Indeterminable Increase Increase Increase METHODOLOGY:

ThisRemainder billeffective authorizesJanuary energy1, storage2027 to be added to net-metered renewable generation systems without affecting eligibility size limits, provided the storage system is charged solely from the renewable generation facility when exporting electricity to the grid unless otherwise authorized by the Public Utilities Commission (PUC).

The bill also authorizes the PUC to determine the terms and conditions under which customer-generators may use and be compensated for exports to the grid from energy storage connected to renewable energy generation sources in conjunction with net metering and related tariff provisions.

In addition, the bill clarifies statutory provisions related to customer energy storage systems.

The Department of Energy states this bill updates the definition of eligible customer generator to allow energy storage to be added to and charged solely from a renewable generation facility without affecting the one megawatt size limit.

The Department indicates these changes align with its current administrative responsibilities and that reviewing net metering applications under the updated criteria would not require additional staff or resources.

Additionally, the Department states it is not possible to determine the fiscal impact on electricity costs, net metering compensation, or Class II renewable energy certificate obligations, and notes that costs could increase or decrease depending on system configuration.

Because the State accounts for approximately 1% of total electricity purchases, an electric rate increase of $0.001 per kilowatt hour would result in an estimated State cost increase of about $77,000 per year.

The Public Utilities Commission states this bill would require rulemaking and adjudicatory proceedings to establish terms and conditions for compensation of exports from storage systems charged solely from renewable energy.

The Commission indicates it currently employs and is authorized to employ one full-time classified utility analyst, who is working at or near the position’s maximum utilization rate.

Accordingly, the Commission anticipates needing one additional Miscellaneous Business Operations Specialist (13-1190 MISC BUS OPS SPECS-5 SOC11-06) beginning January 1, 2027 to assist the Commission with analyzing, establishing, and administering alternative net metering utility tariffs for energy storage systems.

The Commission estimates annual expenditures of $64,000 in FY 2027 (part year), $131,000 in FY 2028, and $137,000 in FY 2029, funded through the Utility Assessment under RSA 363-A:1.

To the extent utility assessments increase county and local utility expenditures could also see an increase.

AGENCIES CONTACTED:

Department of Energy and Public Utilites Commission