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Incentives/Policies for Renewables & Efficiency

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Net Metering   

Last DSIRE Review: 04/03/2014
Program Overview:
State: Vermont
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, CHP/Cogeneration, Anaerobic Digestion, Small Hydroelectric, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Agricultural, Institutional
Applicable Utilities:All utilities
System Capacity Limit:2.2 MW for military systems; 20 kW for micro-CHP; 500 kW for all other systems
Aggregate Capacity Limit:15% of utility's 1996 peak demand or peak demand during most recent calendar year (whichever is greater).
Net Excess Generation:Credited to customer's next bill at retail rate; excess credits not used within 12 months of generation granted to utility
REC Ownership:Customer retains RECs, has the option of voluntarily granting to utility
Meter Aggregation:Group net metering allowed
Web Site:
Authority 1:
Date Enacted:
Date Effective:
30 V.S.A. § 219a to § 219b
1998 (subsequently amended)
Authority 2:
Date Enacted:
Rule 5.100
2001 (subsequently amended)
Authority 3:
Date Enacted:
Order Implementing Registration Process For a Net Metering CPG (10 kW or less)
Authority 4:
Date Enacted:
Date Effective:
HB 702

Vermont's original net-metering legislation was enacted in 1998, and the law has been expanded several times, most recently by HB 702 of 2014. Any electric customer in Vermont may net meter after obtaining a Certificate of Public Good from the Vermont Public Service Board (PSB). Solar net metered systems 15 kilowatts (kW) or less follow an expedited process for the Certificate of Public Good, if the customer successfully completes registration (that is, informing the PSB about the project) and complies with his/her electric utility interconnection requirements. In this case, after 10 days from receiving the certificate of compliance with the interconnection requirements, a Certificate of Public Good is automatically "deemed issued," and the customers may proceed with installation. An application for a Certificate of Public Good for Interconnected Net Metered Power Systems for all other systems that are less than 150 kW is available on the program web site listed above. Systems greater than or equal to 150 kW must make a filing for the Certificate of Public Good. 


Availability and Eligibility

Net metering is generally available to systems up to 500 kW in capacity that generate electricity using eligible renewable-energy resources, including combined heat and power (CHP) systems which use biomass. CHP systems that use a non-renewable fuel are limited to 20 kW, and has to meet an efficiency standard. Renewable energy facilities established on military property for on-site military consumption may net meter for facilities up to 2.2 megawatts (MW, AC).

“Renewable energy” is defined as “energy produced using a technology that relies on a resource that is being consumed at a harvest rate at or below its natural regeneration rate.” Biogas from sewage-treatment plants and landfills, and anaerobic digestion of agricultural products, byproducts and wastes are explicitly included. (The term "renewable energy" explicitly excludes solid waste that is not agricultural or silvicultural, as well as nuclear fuel, coal, oil, propane and natural gas.)

Net metering is available on a first-come, first-served basis until the cumulative capacity of net-metered systems equals 15% of a utility’s peak demand during 1996 or the peak demand during the most recent full calendar year, whichever is greater. Renewable energy facilities on military installations do not affect the cap. Any customer net excess generation (NEG) is carried over to the customer’s next bill. Any NEG shall be used within 12-months of the month earned, if not, it is granted to the utility with no compensation for the customer. Net metering is also available under a time-of-use metering arrangement.

Group Net Metering

Vermont also allows “group net metering.” In order to set up such a net metering system, the group must file with the PSB and other relevant parties, the following information:

  • The customers and meters that are to be included as part of the group;
  • The method for adding/removing meters and information regarding credit allocation to each customer-meter;
  • The contact person responsible for communications, but not those related to billing, payment or disconnect; and
  • A dispute resolution process.

The utility is required to bill all customers of the group individually.


Utilities may require a customer to comply with generation interconnection, safety and reliability requirements, as determined by the PSB, and may charge reasonable fees for interconnection, establishment, special metering, meter reading, accounting, account correcting, and account maintenance of net-metered systems greater than 15 kW in capacity. (Interconnection requirements for systems 150 kW or less are accessible at the program web site listed above. Interconnection requirements for systems greater than 150 kW must follow the interconnection procedures specified in PSB Rule 5.500). 



Utilities must offer additional credits or incentives to net metering customers using solar energy, above and beyond the benefits provided by net metering itself. The additional credit amount is a per-kilowatt-hour (kWh) adder, minus the residential rate per kWh charged by the company. For solar net metered systems of 15 kW or less, the adder is $0.20. For systems larger than 15 kW, the adder is $0.19. Customers will receive the adder, at the rate available at the time the system is connected, for 10 years. After 10 years, the customer will receive the retail rate. 

For example, if the highest residential rate charged by a utility is $0.15 per kWh, then the additional credit offered for 10 kW PV system will be $0.05 per kWh. If the highest residential rate charged by a utility is $0.22 per kWh, then no credit will be offered. The solar net metered customer will receive the credit stipulated in the rate schedule for a period of at least ten years. All solar net metered customers are eligible, regardless of rate class. In exchange for the additional payment, the energy production associated with the payment can count towards the Utility’s SPEED goals.


Future Considerations

Legislation passed in 2014 creates a process to result in the establishment of a revised net metering program by January 1, 2017. Specifically, the Department of Public Service must prepare a report by October 1, 2014 that evaluates the current state of net metering in Vermont. The PSB must follow up this report with one or more workshops involving interested parties, and finally, a rulemaking process. 

  Andrew Perchlik
Vermont Department of Public Service
Clean Energy Development Fund
112 State Street, Drawer 20
Montpelier, VT 05620-2601
Phone: (802) 828-4017
Fax: (802) 828-2342
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.