Vermont Utility Guide

Net Metering, or ‘NEM,’ policies can vary by state and utility based on how the program is designed. Under Vermont's Net Metering Statute, excess solar production will 'net,' or subtract, with consumption at nearly the same retail rate the utility charges you per kWh with the exception of a non-bypassable Energy Efficiency Charge of just 1 cent per kWh. Most notably, there is a ‘Siting Adjustor’ of 4 cents per kWh charged on all solar production.

If you produce more than you consume in a monthly billing cycle, Excess Net Metering Credits will be calculated, and may reduce the Siting Adjustor charge or carry forward to the next billing cycle for up to one year. Net Metering Credits will never reduce the Customer Charge ($22 per month) or Energy Efficiency Charge. While it’s counterproductive to receive production charges, net metering remains favorable and a valuable benefit in Vermont.
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The Vermont Public Utility Commission (PUC) approves a Siting Adjustor and REC Adjustor every two years under a Biennial Update. For customers submitting new solar interconnection applications beginning August 1, 2024, utilities are directed to charge 4 cents per kWh on all solar produced under what’s called a ‘Siting Adjustor.’ As shown in the table below, the charge has changed over time for new applicants. Category 1 is defined as systems under 15 kW. The 4 cent charge will apply for the life of the system (i.e. 25+ years).

In addition, if you choose to retain the system’s Renewable Energy Credits, or ‘RECs,’ another 4 cents per kWh on all solar produced will be charged. Thankfully, the REC Adjustor is zero, no charge, for the life of the system as long as you agree to allow the utility to claim the RECs to meet statewide energy goals. RECs are the non-tangible, environmental attributes of solar electricity. There is really no purpose for homeowners to retain them. Your installer will select ‘Transfer Ownership’ on the Utility Interconnection Application.

In this sample bill from VEC,

The customer received Net Metering Credits for -433 kWh at $78.44.

There's a Siting Charge of 860 kWh * $0.04/kWh = $34.40

Of the $78 Net Metering Credits, $35.43 were applied to reduce the bill as low as it could go to $25.99 (the Customer Charge and Energy Efficiency charges cannot be offset with NEM credits). The remaining Available Credit of $43 can be used in the future for a rolling 12 months.

The utilities install a Production Meter to measure total solar generated for billing the Siting and REC Adjustors. Solar produced and immediately consumed in your home, or stored in a battery system, will also be charged by the Siting and REC Adjustors.

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Your utility charges a production meter installation fee on your first electric bill after the installation of the solar system. This is approximately $110 in Green Mountain Power, $273.80 in Vermont Electric Cooperative, and $150 in Burlington Electric Department.

Palmetto LightReach’s installation partners will make a payment to your utility account to offset these fees.

Learn more about net metering from your utility Green Mountain Power, Vermont Electric Cooperative, or Burlington Electric Department.