New Jersey is a signature away from revising its discretionary net metering cap by setting it equal to 2.9% of total annual in-state sales made by each electric supplier during the prior one-year period. Existing law sets the cap at 2.5% of state peak electricity demand. In addition, S. 2420 would clarify that any allowance to cease offering net metering would not affect existing net-metered customers (i.e., existing systems would be grandfathered). The existing cap itself is somewhat “soft,” in that it permits — but does not obligate — the Board of Public Utilities to allow suppliers to cease offering net metering in this event. The bill retains the “soft” character of the cap, allowing the BPU discretion to determine whether it should be instituted. EQ Research estimates that this revision would nearly quadruple the existing soft cap (approximately 500 MW) to approximately 1,900 MW, and create ample room for net-metered systems (currently around 850 MW) to double current penetration levels.