As part of his anti-climate, anti-renewable energy campaign, Trump and the Republican Congress terminated a long-standing tax credit for residential solar projects in 2025, making it 30% more expensive for Vermont families to go solar. This spring, the Vermont Public Utility Commission will update the compensation rates for net metering, the only state program that supports residential solar. Unfortunately, since 2018, the PUC has consistently reduced the compensation rate paid to new residential net metering customers. Combined with Trump’s anti-renewable actions, further cuts to net metering would put solar out of reach for most Vermont families, reducing the amount of solar power we generate in the built environment.
In recognition of the value of Vermont families investing in solar on their rooftops and backyards, two bills, S.170 and H.716, would direct the PUC to temporarily pause the downward slide in compensation for new residential solar projects. S.170 would help to partially offset the loss of the federal tax credit with no impact on the state budget and a negligible impact (on the order of 10-20 cents a month) on electric bills.
Absent direction from the Legislature, the Public Utility Commission is likely issue an order further reducing the compensation for new net metering customers by June 1st. The schedule for updating the compensation rate is:
- Vermont utilities must report data on the net-metering systems interconnected within their service territories by 3/1/2026
- The Public Service Department and the Agency of Natural Resources must make any recommendations on adjustors and other issues by 4/1/2026
- Other stakeholders and members of the public will have until 4/15/2026 to comment
- The PUC will issue its final order by 6/1/2026
- Utilities will update their net metering tariffs by 6/15/2026 to go into effect 8/1/2026 and remain in effect until summer 2028
Is there Opposition to S.170?
The Vermont Public Service Department opposes passing S.170 to counteract Trump’s attack on Vermonter’s ability to go solar primarily on the grounds that residential solar is more expensive than larger, utility-owned/directed solar projects. While it is true that larger, ground-mounted solar projects have economies of scale that make it one of the cheapest sources of power that we can build in Vermont, REV strongly supports empowering Vermont families to invest in solar on their roofs and in their backyards.