Net metering is program instituted by Vermont law designed for and applied to small scale, grid connected energy systems, typically wind, solar, hydro or farm methane 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, and recent changes allow quite large renewable systems to connect through Net Metering.

VEC supports and encourages renewables.  The information below is intended to help you with understanding net metering systems. 

Please note that despite very favorable state and federal incentives, and proactive Net Metering laws in Vermont, often times the payback on net metered investments can still be significant.  If you have not already looked at efficiency improvements for your home, farm or business, we encourage you to compare those investments as well.  Reducing our collective energy needs is an important first step, not to be overlooked.  For more information go to www.efficiencyvermont.org.

Here are a few Frequently Asked Questions about net metering:

How does net metering work?

What renewable resources are available in Vermont?

Are there incentives?

What about tax credits?

Are there any other tax breaks or exemptions?

Are there other benefits to installing a renewable energy system?

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

Are there specific standards for equipment and interconnection that must be followed?

What are the changes to Net Metering since Act 47 (aka the Vermont Energy Act of 2011) was passed?

What is the new Solar Energy Credit as a result of Act 47?

Are all net metering systems eligible for the Solar Energy Credit?

How do I go about getting the Solar Energy Credit?

Can I accrue credits, month to month – in the summer for example with a solar system – that can be used at a later date?

Do I have to have a second meter?

What is a required for the second meter?

Is there a monthly fee associated with the additional meter?

Where can I learn more?

Q. How does net metering work?
A. Net metering allows members to generate and use power, often simultaneously, using 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 consumers 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’, as they say.  In VEC’s case meters are digital, but effectively the generation results in a lower ending meter reading, than the one you started with, providing you a credit for the power produced.  Credit for this excess generation is monetized and "banked" to be used against future charges.  Credits can be carried over for up to 12-months. When you use energy, if credits are available they come out of the bank to reduce or eliminate entirely the assessed charges.

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.

Q. What renewable resources are available in Vermont?
Briefly stated, the typical renewable resources found in Vermont are:  
1. Solar Electric– using sunlight, as opposed to thermal energy capture (as with solar hot water systems), to directly generate electricity through a photovoltaic, or “PV” panel.  A group of panels are arranged in an “array” to determine the capacity of the system.  More Vermonters are looking to solar as a practical supplemental power alternative. Vermont may be cold, but it actually gets comparatively more sunlight than many areas where solar has already been demonstrated to be effective.  This form of renewable energy is increasingly the majority of VEC’s net metered systems. 

Here are a few items to consider when evaluating this source of renewable energy for your home or business: 

Pros
+lends itself to many sites.  Typically a good solar exposure is all that is needed
+silent, no moving parts (except in the case of trackers) modular, low maintenance
+predictable energy production
+cost and availability of components and qualified installers has steadily improved, particularly in the last five years.
Cons
-may not be suitable for all sites
-arrays can be large and may raise aesthetic concerns
- costs;  even with available incentives the payback on a system can range on average 8-10 years

2. Wind - harnessing a portion of the power in the wind to spins a turbine is not a new concept – Vermont has good local wind regimes particularly at higher elevations, but proper siting is key to having a viable system.  The comparatively high initial capital investment and long term maintenance are also important factors when considering wind.  Usually measuring the wind at a site with a device called a wind-odometer, and/or retrieving any available wind-mapping data is recommended before investing in a wind system.

Here are a few items to consider when evaluating this source of renewable energy for your home or business: 

Pros
+can have a lower cost per kW overall if installed at a good site
+clean, steady, renewable – turn-key systems and maintenance contracts available
+Vermont has an abundance of wind particularly at higher elevations, on high towers
Cons
-noise and aesthetic issues can be challenged by neighbors
-local zoning/ordinances may limit or preclude towers.  It has been said that “putting a wind turbine on too short a tower is like installing solar panels in the shade.”  Generally the higher the tower the better.
- long-term maintenance costs can be a factor in the overall economics

3. Micro-hydro – Micro-hydro typically refers to small-scale member or community owned run-of-stream hydro generation – generating electricity from the force of falling water through a turbine.

Here are a few items to consider when evaluating this source of renewable energy for your home or business: 

Pros
+Can be a steady source of power
+Abundant, steady, renewable
Cons
-very site specific
-compared to other renewable sources, can be expensive and challenging to harness
-compared to other renewable sources, permitting process is extensive.  Net Metering does not remove other state and federal water quality standards that may apply.
More here:
http://www.revermont.org/main/technology/hydro/

4. Farm methane (biomass) – Net metered bio-mass systems are typically farm methane.  Manure is collected in a large digester where methane is collected and in turn used to power an engine driven generator.

Here are a few items to consider when evaluating this source of renewable energy: 

Pros
+can be a good choice for large scale dairy operations
+Side benefits may include thermal heat recovery, production of mulch and/or bedding materials
Cons
-usually limited to very large scale dairy operations
-comparatively higher initial capital costs, usually not attempted without multiple sources of state and/or federal grant or incentive funding and financing.

Q. Are there incentives?
A. Yes.  Vermont has a renewable resource center, or "RERC", which has the State’s incentive information and can be found at:  http://rerc-vt.org/incentives/faq.htm

Q. What about tax credits?
A. Information of Federal tax credits can be found at: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Q. Are there any other tax breaks or exemptions?
A. 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 savings in the cost of a net metered system provides Vermonter's with an extra incentive to produce green power.

Q. Are there other benefits to installing a renewable energy system?
A. 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.

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

Application form can be found at:  http://psb.vermont.gov/sites/psb/files/forms/5100_Application_Form_2010-1.pdf

‘Short form’ for systems under 5 kW, procedures:
http://psb.vermont.gov/sites/psb/files/orders/2011/2011-2/219a%20Registration%20Procedure.pdf

‘Short form’ for systems under 5 kW, application form:
http://psb.vermont.gov/sites/psb/files/orders/2011/2011-2/219a%20Registration%20Form.pdf

Where to find installers:
http://www.revermont.org/main/partnership-program/find-a-partner-installer/

Q. Are there specific standards for equipment and interconnection that must be followed?
A. Equipment and interconnection standards can be found at:
http://psb.vermont.gov/sites/psb/files/rules/OfficialAdoptedRules/5100appendixA.pdf

Q.  What are the changes to Net Metering since Act 47 (aka the Vermont Energy Act of 2011) was passed?
A. On September 30, 2011, the Public Service Board (PSB) approved VEC’s revised Net Metering Tariff which incorporates Act 47 changes. A brief summary of the changes in the legislation affecting net metering are outlined below: 

a) Monthly credits are to be monetized, or converted to dollars (net generation x kWh rate) versus kWh credits.
b) The monetized credits can offset all account charges (including monthly service charges, street lights, miscellanous service charges or fees, etc.).
c) Unused monetized credits can be applied to future bills for up to 12-months
d) Solar (photovoltaic or “PV”) systems are eligible for Solar Energy Credit of $0.02882/kWh for the total (or gross) metered solar energy generated (discussed further below).
e) Group system members will receive individual bills versus a single, aggregated Group billing statement.
f) Solar systems of 5 kW or less have a more streamlined, 10-day regulatory approval process.  The procedure and forms can be found here:
http://psb.vermont.gov/sites/psb/files/orders/2011/2011-2/219a%20Registration%20Procedure.pdf
http://psb.vermont.gov/sites/psb/files/orders/2011/2011-2/219a%20Registration%20Form.pdf
g) The maximum net metered system size has increased from 250 kW to 500 kW.
h) The prior cap of 2% of the utility’s peak has been increased to 4% of the utility’s peak.

A copy of VEC's Net Metering Tariff can be found here.

Q.  What is the new Solar Energy Credit as a result of Act 47?
A.  The Solar Energy Credit is an additional benefit for solar net metered systems.  For Coop members the adder is established based on a $.20 per kWh rate minus the Residential (SC#1) rate of $.17118, or $.02882 per kWh.  The Solar Energy Credit is applied to the total array output, and thus requires an additional meter.
More about Act 47 can be found at http://www.leg.state.vt.us/docs/2012/bills/Passed/H-056.pdf

Q.  Are all net metering systems eligible for the Solar Energy Credit?
A.   No, only solar (PV) systems are eligible.  The Solar Energy Credit does not apply to wind, hydro or biomass (typically farm methane) systems.

Q.  How do I go about getting the Solar Energy Credit?
A.  Simply contact VEC and let them know that wish to elect to receive the Solar Energy Credit.  They will review metering requirements with you.

Q.  Can I accrue credits, month to month – in the summer for example with a solar system – that can be used at a later date?
A.  Yes.  Credits, now accrued as dollars, can be carried for up to 12-months from the month they are generated.  Credits can be applied to all charges, including the monthly service charge(s), or fixed fees such as streetlights.

Q.  Do I have to have a second meter?
A.  If you elect to receive the Solar Energy Credit, yes, however particularly for small scale systems (typically under 1.5-2.0 kW) the benefits afforded by the Solar energy Credit may not justify the costs.  This is particularly true for an existing system where the costs of installing a second meter socket may be high.

Q.  What is a required for the second meter?
A.  VEC will furnish, own and read the required additional meter.  The member must install or make available an appropriate meter socket capable of reading the total output of the PV generation.  The meter socket must be outside in an accessible location, typically near the net metering disconnect, and if applicable within reasonable proximity to the existing meter.

Q.  Is there a monthly fee associated with the additional meter?
A.  Yes.  If it is a residential service and the second meter does not require service upgrade or establishment of a new service, and is billed to the same account, the monthly fee is considerably lower, currently $5.46 per month.  Otherwise the normal monthly fees apply; currently $16.73 per month for Residential (SC#1) or $17.74 per month for General Service (SC#2, e.g. commercial and mixed rate groups).

Q. Where can I learn more?
The Vermont Department of Public Service at http://publicservice.vermont.gov/energy-efficiency/ee_renewables.html

5.100 Public Service Board original Rules governing Net Metering
http://psb.vermont.gov/sites/psb/files/rules/OfficialAdoptedRules/5100adoptedrule_2.pdf

Public Service Board background information and forms
http://psb.vermont.gov/utilityindustries/electric/backgroundinfo/netmetering

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

For a directory of Vermont Solar & Wind Providers visit
http://www.revermont.org/main/partnership-program/find-a-partner-installer/

Renewable Energy Resource Center
http://www.rerc-vt.org/

VPIRG has a solar neighborhood program
http://www.vpirgenergy.org/how-it-works/

Transfer of ownership form
http://psb.vermont.gov/sites/psb/files/forms/nmtransferapp.pdf

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/