Net Metering
Net metering is a program that allows members to connect small-scale, renewable energy systems to the grid and receive credit on their electric bills for the power that system generates. The most common type of net metering is for solar, but wind, hydro and methane can also be connected under the net metering program.
Note: The information below pertains to applications on or after 1/1/2017. For information on net metering systems installed prior to 2017, please contact 1-800-832-2667.
Click here for an overview of VEC's net metering interconnection procedures.
Starting March 1, 2024, with the new Public Utility Commission rules 5.100 and 5.500, the PUC has updated the interconnection and net metering certificate of public good (CPG) processes:
For projects 0-15kW:
- Apply via ePUC using Net-Metering Registration.
- VEC communicates any issues to project via email by 15th day following complete application.
- PUC issues/denies CPG. All CPGs issued are conditioned on the CPG holder complying with all VEC interconnection requirements.
For projects >15-150kW:
- Applicant sends completed “Rule 5.500 Application for Interconnection of Distributed Energy Resources Not Greater than 150 kW” to [email protected].
- VEC reviews and must issue interconnection approval letter to applicant stating any requirements or no requirements for interconnection by the 31st day following a completed application unless the project fails the preliminary screening criteria and requires further analysis as laid out within the rule.
- Applicant files for CPG on ePUC using appropriate Net-Metering Registration/Application and attaches VEC approval letter as part of filing.
For projects >150kW-500kW:
- Sends completed “Rule 5.500 Application for Interconnection of Distributed Energy Resources Greater than 150 kW” to [email protected] and the $600 application fee.
- VEC reviews and must issue interconnection approval letter to applicant stating any requirements for interconnection by the 31st day following a completed application unless the project fails the preliminary screening criteria and requires further analysis as laid out within the rule.
- Applicant files for CPG on ePUC using appropriate Net-Metering Registration/Application and attaches VEC approval letter as part of filing.
Pre-Application Report
There is an optional Pre-Application Report that applicants can request to evaluate potential projects. The cost is $300. For more information or to submit an application, please click here.
Net-Metering Registration Eligibility – After receiving interconnection approval (15kW or less systems exempt), you may register for a CPG for the following types of systems using ePUC’s Registration:
- Ground-mounted photovoltaic systems with a capacity of 15 kW or less,
- Roof-mounted photovoltaic systems with a capacity of 500 kW or less,
- Mixed Ground- and Roof-Mounted Systems of up to 500 kW Where the Ground-Mounted Portion Does Not Exceed 15 kW, and
- Hydroelectric facilities with a capacity of 500 kW or less.
Net-Metering Application Eligibility – After receiving interconnection approval, you may apply for a CPG for the following types of systems using ePUC’s Application:
- Ground-mounted photovoltaic systems with a capacity of greater than 15 kW and up to and including 500 kW, and
- Other eligible technology systems other than photovoltaic systems with a capacity of up to and including 500 kW.
The first step is to select an installer. VEC does not offer recommendations for specific installers, but we do suggest that you do some research and consider asking neighbors or others in your community for recommendations. VEC often recommends asking for more than one quote to compare prices.
The installer you choose will typically file the net metering registration on your behalf. After the application waiting period has passed, you will have the right to install the system.
After the system has been installed, you or the installer will contact VEC to request a solar production meter, which tracks how many kilowatt-hours the system produces. VEC will install this meter within three business days. Once your system is online and producing energy, the net metering credit will appear on your bill.
There is no cap on the number of systems that can come online. Therefore, no one will be barred from participating unless their application is denied by the PUC.
For excess energy sent back to the grid, net metering members will receive the blended residential rate, currently $.16606 per kilowatt-hour (kWh).
Members who choose to retain the Renewable Energy Certificates (RECs) will be charged four cents per kWh for every kWh produced for the life of the system. (See explanation of RECs below).
For applications dated 9/1/22 or later, systems 150 kilowatts and smaller will be charged two cent per kWh for every kWh produced. Systems larger than 150 kW will be charged five cents per kWh.
RECs are the claim to the renewability of the power a system generates. Applicants for net metering projects must decide whether or not they want to "retain ownership of any environmental attributes associated with the system,” ie retain the RECs associated with the system.
If you choose to retain the RECs, you will be charged four cents per kilowatt-hour for the energy the system produces.
Your installer should be familiar with the credit difference. Once you choose how you want to handle the RECs, you will not be able to change your decision, according to the PUC's Rule 5.100 - Rule Pertaining to Construction and Operation of Net-Metering Systems.
Most applicants since 2017 have chosen "no" on their applications in order to receive higher credit.
Under Vermont law, utilities cannot resell net metering RECs, so your RECs will stay in Vermont. VEC will use them to help comply with Vermont’s Renewable Energy Standard (RES).
You will see the appropriate credit on your monthly bill. The customer charge and energy efficiency charge are considered “non-bypassable,” meaning that net metering credits cannot be used to pay them. Net metering participants must still pay these two charges.
Credits will remain on account for 12 months to be applied to future bills. If a credit is not used within 12 months of the time it’s generated, it will expire.
Members have the option of setting up a group to transfer credits to another account on VEC’s system. These credits must be transferred prospectively, meaning they can be transferred only at the time they are generated. They may not be transferred at the time that they would expire.
To set up a group or amend an existing group, please submit this form.
There is a one-time account set-up charge. That charge depends on how many accounts are involved, and they are as follows:
- Single-member systems and groups up to three accounts: $33
- Group systems with four to 15 accounts: $66
- Group systems with greater than 15 accounts: $132
VEC also charges for the installation of the second meter, which tracks the kWh generated. Currently, that charge is $160.80 for the meter and $75 for installation, both one-time charges.
No. Pre-2017 systems will continue to receive their current compensation for 10 years from the time the system was commissioned. After that, the systems will be subject to the statewide blended rate for excess generation and will be required to pay the non-bypassable charges identified in the PUC order.