Governor, Legislature Must Act to Make Net Metering Affordable Again

The passage of the so-called “Big Beautiful Bill this summer ended the 30% tax credit for residential solar, making it unaffordable for many Vermonters. Simultaneously, the U.S. EPA has withdrawn Vermont’s $62 million in Solar for All funding designated to help low-income Vermonters go solar. These actions combined will make going solar at home unaffordable for thousands of Vermonters

While the loss of the federal tax credit is harmful, the compensation Vermonters receive for going solar at home is legislatively mandated to be set by the Public Utility Commission every two years. The PUC sets this rate by calculating the statewide “blended rate” and subtracting negative “adjustors” to decrease the compensation Vermonters who net meter receive.

In 2025, these adjustors reduce the compensation homeowners get from solar generation from 18¢/kWh to 14¢/kWh (see below for more details).

Application Date	Statewide Blended Rate	Adjustor for NM <150kW	Compensation Rate in Year 1
2/21-8/21	16.4¢	none	16.4¢
9/21-8/22	16.4¢	-1¢	15.4¢
9/22-6/24	17.1¢	-2¢	15.1¢
8/24-7/26	18.3¢	-4¢	14.3¢

 

As you can see, every year since 2017, the PUC has decreased the compensation Vermonters received for going solar at home. And this has impacted solar deployment.

REV believes that there are many possible actions Governor Scott and the Legislature can take to make going solar at home more affordable for more Vermonters and that this discussion must be a priority for the 2026 Legislative session.