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What You Should Know About Vermont's Net-Metering Rate Changes

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One effective strategy for homeowners and business owners to maximize the benefits of their solar investments is through net-metering, which is when utilities provide credits for surplus solar energy fed into the grid. Every two years, Vermont's Public Utility Council (PUC) reviews the current compensation rates for solar energy and determines whether adjustments are necessary. They recently announced the compensation rate will decrease by $0.02 per kWh starting August 1st.

This decision came on June 1st, and gives the utility until Jun 15th to update their tariffs, which will then take effect on August 1st. 

Vermonters who already have solar panels and net-metering agreements with their utility will not be affected by the upcoming rate decrease. In fact, along with these changes comes the announcement of a new blended residential rate for solar net metering, which will increase the base net-metering rate to $0.1839 per kWh, up from $0.1765. This will also take effect on August 1st, 2024. The value of your solar does increase with rising utility rates, and we are seeing that in effect at the state level with this update.  

For those considering transitioning to solar, there is still an opportunity to secure the current rate by submitting the necessary permits before August 1st. Those who sign before August 1st, will earn $0.1639 on their solar going forwards. After the August 1st deadline, any new solar customers will earn $0.1439 (two cents less). 

This effectively means that customers who submit permits after August 1st will receive 12% less credit for their solar energy production, due to the additional $0.02 reduction per kWh. If you are considering solar, it's essential to act soon to secure the existing net-metering rates and maximize the benefits of your solar system!

Green Mountain Solar will be able to process the permit applications for customers who sign project agreements with us by the end of July so they can be locked in to the current net-metering rate. Get in touch with us to set up a free site visit and get started on your solar journey, while ensuring you get the most out of your investment.

 

 

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