NEW YORK - A new law passed last summer helped Rhode Island improve its grade to a “B” in an environmental group’s annual report on electricity net metering.

A net-metering policy allows an electricity customer who has added a renewable-energy installation, such as a solar panel or wind turbine, to deduct the electricity generated by the installation from the total amount of kilowatt-hours on his or her electric bills.

The 2008 report on state net-metering policies from the nonprofit Network for New Energy Choices, “Freeing the Grid”, gave Rhode Island a “B,” reflecting an expansion of the state's policy by a law passed in July by the General Assembly.

The report recommended that Rhode Island policymakers increase the program's limit on overall enrollment in net metering to 5 percent of the utility's peak load. The current limit is 2 percent.

The grade was an improvement for the state. Last year's report gave Rhode Island a “C.” The state earned a 9, the lowest possible number grade before getting a “C.” Massachusetts, Connecticut and 12 other states received a “B,” while just six states received an “A” grade.

This year's report is a more accurate reflection than last year's of where things stand for net metering in Rhode Island, according to Karina Lutz, deputy director of People’s Power & Light, a local nonprofit that manages renewable-energy purchasing programs and which advocated for the net-metering law.

“The new net metering/net billing law we promoted and saw passed this year solved a lot of problems with the existing policies, and greatly expanded the ability of renewable energy generators to let their meters run backwards whenever they are producing more energy than they need,” Lutz said in an e-mail. “If properly regulated by the Division of Public Utilities and Carriers, the new law will encourage much more distributed generation [or decentralized power generation].”

Lutz added: “And we agree, as the report states, such policies will greatly benefit society as a whole, not just those who take advantage of it for their own homes and businesses.”