Net metering is a metering program designed for and applied to small, simple grid connected energy systems - typically wind or solar or hydro - where the member wants to off-set some, or all of the power needs for their home or business. Net metering can also encompass a group of members collaborating on a "group" system.

Net Metering Q& A

• How does net metering work?
• Is solar practical in VT?
• Are there incentives?
• What about tax credits?
• Are there any other tax breaks or exemptions?
• What are the steps involved in setting up a Net Metered System?
• Are there specific standards for equipment and interconnection that must be followed?
• Where can I learn more?
• Are there other benefits to installing a renewable energy system?
• What about wind?

How does net metering work?

Net metering allows members to generate and use power, often simultaneously, using the a renewable energy system such as wind, solar, hydro or farm methane and your existing meter.  With net metering, the meter will measure electricity flowing in both directions.  On a monthly basis, you pay only for the "net metered" consumption. You can offset some or all of the power consumed in your home or business, but you will not receive a payment for excess power from VEC.  Net Metered customers must pay the same monthly service charges and other monthly fees required of other members.

Here’s how it works at any given time:

If you are generating some, but not all of your power, net metering simply allows your meter to slow down - using the renewable power being generated to offset some of what would otherwise be supplied from VEC.

If you generate more energy than you use, your electric meter runs backward providing you a credit for the power produced.  Credit for this excess generation goes into a "bank" and be carried over for up to 12-months. When you need energy it comes out of the bank.

If your home or business needs electricity, and there is no generation from your renewable energy system, VEC provides the electricity off from our distribution system, your electric meter registers your usage and you are billed accordingly.

Is solar practical in VT?

More Vermonters are looking to solar and wind as practical supplemental power alternatives.  Vermont may be cold, but it actually gets comparatively more sunlight than many areas where solar has already been demonstrated to be effective.  Improvements in equipment coupled with recent State and Federal tax incentives have made solar and wind increasingly attractive to Vermonters.

Solar in Vermont

http://www.independentpowerllc.com/pdf/vermont-palumbo.pdf

NREL map of PV resource in US:

• http://www.seia.org/galleries/default-file/PVMap_USandGermany.pdf

Are there incentives?

Yes.  Vermont has a renewable resource center, or "RERC", which has the State’s incentive information and can be found at:  http://www.rerc-vt.org/

What about tax credits?

Information of Federal tax credits can be found at: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s4

Are there any other tax breaks or exemptions?

Yes.  All equipment purchased to construct and install a net metered renewable energy system is exempt from the state's 6% sales tax (Sec. 27. 32 V.S.A. § 9741(46). This five percent savings in the cost of a net metered system provides Vermonter's with an extra incentive to produce green power.

What are the steps involved in setting up a Net Metered System?

In order to install a net metered system you must first obtain a "Certificate of Public Good for Interconnected Net Metered Power Systems" from the Vermont Public Service Board.  Often the vendor and/or installer/ will help with this process. The application and paperwork is available at:

• http://publicservice.vermont.gov/energy-efficiency/ee_files/netmetering/net_metering_form.pdf

Are there specific standards for equipment and interconnection that must be followed?
Interconnection safety and technological information can be found at:

• http://publicservice.vermont.gov/energy-efficiency/ee_files/netmetering/interconnection.pdf

Where can I learn more?

The Vermont Department of Public Service at http://publicservice.vermont.gov/energy-efficiency/ee_renewables.html

Additional Vermont renewable energy resources and educational support can be found at  http://www.revermont.org/

For a directory of Vermont Solar & Wind Providers visit http://www.revermont.org/installers.php

Additional information concerning Vermont Public service Board (PSB) Orders, Rules, Regulations, interconnection requirements, etc. can be found at the PSB website at  http://www.state.vt.us/psb.

Are there other benefits to installing a renewable energy system?

Beyond any financial benefits there are significant environmental benefits to using renewable sources of energy. Sun and wind are renewable energy resources that do not create pollution over the systems lifetime. Solar and wind also do not impact water or air quality as with many other sources of power.

What about wind?

Vermont has good local wind regimes particularly at higher elevations, but proper siting is key to having a viable system.  The comparatively high initial capitol investment and long term maintenance are also important factors when considering wind.

In Vermont there is also a Small Scale Wind Demonstration Program where they have monitored wind speed and generation output from some area sites.  Data from that site can be accessed here:  http://www.vtwindprogram.org/proddir/prod/168/9/

A siting guide for wind can be found at http://publicservice.vermont.gov/energy-efficiency/ee_files/wind/psb_wind_siting_handbook.pdf

A wind generation discussion board:  http://groups.yahoo.com/group/renewable-energy/

American Wind Association:  
http://www.awea.org/smallwind/