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Vermont Net-Metering Rules

Date Last Updated5/15/2013
Policy TypeNet-Metering Policy
Policy Administrator/Contact OfficeVermont Department of Public Service
Policy Initiation Date4/21/1998
Policy SummaryNet-metering legislation, which includes provisions for CHP, was enacted for the first time in Vermont in 1998. Net-metering is generally available to systems <500 kW in capacity that generate electricity using eligible renewable energy resources, and to micro-CHP systems <20 kW.

A net-metering system is one that meets the size definition provided in the rules, operates in parallel with facilities of the electric distribution system, is intended primarily to offset the customer's own electricity requirements; is located on the customer's premises or, in the case of a group net-metering system, on the premises of a customer who is a member of the group; and employs a renewable energy resource or is a qualified micro-CHP system.

"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.

A CHP facility is defined as "a generator that sequentially produces both electric power and thermal energy from a single source or fuel. In order for a fossil fuel-based CHP system to participate in the clean energy program set out in this section, at least 20% of its fuel's total recovered energy must be thermal and at least 13% must be electric, the design system efficiency (the sum of full load design thermal output and electric output divided by the heat input) must be at least 65%, and it must meet air quality standards established by the agency of natural resources".

Net-metering is available on a first-come, first-served basis until the cumulative capacity of net-metered systems equals 4% of a utility's peak demand during the most recent full calendar year. Renewable energy facilities established on military property for on-site military consumption may net-meter for systems <2.2 MW. Net excess generation is carried forward as a kWh credit to the next month. All renewable energy credits associated with the electricity produced by the system remain with the customer.
CHP Eligibility RequirementsFossil-fueled and Renewably-fueled CHP systems are eligible for net-metering.
Eligible Project Size (MW)<20 kW for micro-CHP, <2.2 MW for military facilities, and <500 kW for all other systems are eligible for net-metering.
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
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