On Friday, May 29th, the Public Utility Commission (PUC) released its statutorily mandated biennial update to the net metering program that determines the compensation rates for Vermonters who install net-metered solar. Net metering incentivizes Vermonters to install and use solar power on site where they live and work, supports many good jobs, and helps keep Vermonters’ energy dollars in the state.
The PUC increased the siting charge for small solar, which is charged to net metering customers on their utility bills, from 4¢/kWh to 5¢/kWh. These higher charges will affect all solar that applies for a permit between August 1st, 2026 through July 31st, 2028.
Stated Peter Sterling, Executive Director of Renewable Energy Vermont, “The PUC’s new net metering rates have once again failed to make net metering truly affordable for Vermonters. We believe the PUC should have acted to fill the financial gap created by the Trump Administration’s repeal of the decades-old federal Investment Tax Credit (ITC) for residential solar. These cuts come as the PUC reports a 24% decrease in applications for net metering CPGs under 150kW from 2024 to 2025, even before the elimination of the Investment Tax Credit took effect. It’s a pretty smart bet that there will be even less net-metered solar coming online in Vermont in 2026 now.”
“While rejecting the Department of Public Service’s recommendation to freeze the blended rate, no doubt in response to the over 1,000 public comments in opposition to the proposal that the PUC received in just one month, this decision will still make it almost impossible for many Vermonters to afford generating their own power on their roofs, in their backyards and other parts of the already built environment.”
Below is a chart detailing the PUC’s consecutive cuts in the biennial net metering rate updates since 2017
