How Vermont net-metering values a commercial system
Vermont net-metering is governed by Public Utility Commission Rule 5.100. A net-metering system can be up to 500 kW. Compensation is built from three pieces: the statewide blended residential rate, a siting adjustor based on system category and location, and a REC adjustor based on whether the owner transfers the renewable energy credits to the utility or keeps them.
The PUC resets these values every two years. In its 2026 biennial update order dated May 29, 2026, effective for systems whose complete applications are filed on or after August 1, 2026, the Commission set the following:
| Component | Definition | Value per kWh |
|---|---|---|
| Blended residential rate | Statewide base rate | $0.2071 (up from $0.18398) |
| Category I siting adjustor | 15 kW or less | negative $0.05 |
| Category II siting adjustor | Over 15 kW to 150 kW, preferred site | negative $0.05 |
| Category III siting adjustor | Over 150 kW to 500 kW, preferred site | negative $0.07 |
| Category IV siting adjustor | Over 15 kW to 150 kW, not on a preferred site | negative $0.08 |
| REC adjustor, RECs transferred to utility | All categories | $0.00 |
| REC adjustor, RECs retained by owner | All categories | negative $0.04 |
Under the rule, a zero or positive adjustor applies for 10 years from commissioning, while a negative adjustor applies in perpetuity. Every adjustor in the current schedule is zero or negative, so the permanent haircut is part of the long-term model.
Two structural points follow from the category definitions. First, there is no category for a system over 150 kW that is not on a preferred site, so a large ground mount on open farmland cannot net-meter at all. Second, a Category III system transferring its RECs is credited on the basis of the blended rate less $0.07, which is the number we test against the host's actual retail rate when deciding how much of the output should be consumed on site.
Why the REC choice matters. Retaining RECs costs $0.04 per kWh for the life of the system. Most commercial owners transfer them to the utility unless they have a specific claim they need to make about renewable electricity use; making that claim without the RECs is not supportable. We model both cases.