§ 8010. Self-generation and net metering
(a) A customer may install and operate a net metering system in accordance with this section
and the rules adopted under this section.
(b) A net metering customer shall pay the same rates, fees, or other payments and be subject
to the same conditions and requirements as all other purchasers from the interconnecting
retail electricity provider in the same rate-class, except as this section or the
rules adopted under this section may provide, and except for appropriate and necessary
conditions approved by the Commission for the safety and reliability of the electric
distribution system.
(c) In accordance with this section, the Commission shall adopt and implement rules that
govern the installation and operation of net metering systems.
(1) The rules shall establish and maintain a net metering program that:
(A) advances the goals and total renewables targets of this chapter and the goals of 10 V.S.A. § 578 (greenhouse gas reduction) and is consistent with the criteria of subsection 248(b) of this title;
(B) achieves a level of deployment that is consistent with the recommendations of the
Electrical Energy and Comprehensive Energy Plans under sections 202 and 202b of this title, unless the Commission determines that this level is inconsistent with the goals
and targets identified in subdivision (1)(A) of this subsection (c). Under this subdivision
(B), the Commission shall consider the Plans most recently issued at the time the
Commission adopts or amends the rules;
(C) to the extent feasible, ensures that net metering does not shift costs included in
each retail electricity provider’s revenue requirement between net metering customers
and other customers;
(D) accounts for all costs and benefits of net metering, including the potential for net
metering to contribute toward relieving supply constraints in the transmission and
distribution systems and to reduce consumption of fossil fuels for heating and transportation;
(E) [Repealed.]
(F) balances, over time, the pace of deployment and cost of the program with the program’s
impact on rates;
(G) accounts for changes over time in the cost of technology;
(H) allows a customer to retain ownership of the environmental attributes of energy generated
by the customer’s net metering system and of any associated tradeable renewable energy
credits or to transfer those attributes and credits to the interconnecting retail
provider, and:
(i) if the customer retains the attributes, reduces the value of the credit provided under
this section for electricity generated by the customer’s net metering system by an
appropriate amount;
(ii) if the customer transfers the attributes to the interconnecting provider, requires
the provider to retain them for application toward compliance with sections 8004 and 8005 of this title unless the provider has fewer than 75,000 customers, in which case the attributes
do not need to be applied toward compliance obligations under sections 8004 and 8005 of this title; and
(iii) if a retail electricity provider that is 100 percent renewable under subdivision 8005(b)(1) of this title does not retire the transferred attributes under sections 8004 and 8005 of this title, requires that the provider apply an equivalent amount of attributes from distributed
renewable generation that qualifies under subdivision 8005(a)(2) of this title toward its compliance obligations under sections 8004 and 8005 of this title; and
(I) allows a customer to change the customer’s decision to retain or transfer the attributes
once in the 120-day period after the net metering system is commissioned.
(2) The rules shall include provisions that govern:
(A) whether there is a limit on the cumulative plant capacity of net metering systems
to be installed over time and what that limit is, if any;
(B) the transfer of certificates of public good issued for net metering systems and the
abandonment of net metering systems;
(C) the respective duties of retail electricity providers and net metering customers;
(D) the electrical safety, power quality, interconnection, and metering of net metering
systems;
(E) the formation of group net metering systems, the resolution of disputes between group
net metering customers and the interconnecting provider, and the billing, crediting,
and disconnection of group net metering customers by the interconnecting provider;
and
(F) the amount of the credit to be assigned to each kWh of electricity generated by a
net metering customer in excess of the electricity supplied by the interconnecting
provider to the customer, the manner in which the customer’s credit will be applied
on the customer’s bill, and the period during which a net metering customer must use
the credit, after which the credit shall revert to the interconnecting provider.
(i) [Repealed.]
(ii) As used in this subdivision (ii), “existing net metering system” means a net metering
system for which a complete application was filed before January 1, 2017.
(I) Commencing 10 years from the date on which an existing net metering system was installed,
the Commission may apply to the system the same rules governing bill credits and the
use of those credits on the customer’s bill that it applies to net metering systems
for which applications were filed on or after January 1, 2017, other than any adjustments
related to siting and tradeable renewable energy credits.
(II) The amount of excess generation, as defined in the Commission’s rules, from existing
net metering systems, may be applied to reduce the provider’s statutory requirements
under:
(aa) subdivision 8005(a)(2) of this title for a provider with fewer than 75,000 customers, not including one that is 100 percent
renewable under subdivision 8005(b)(1) of this title, and
(bb) subdivision 8005(a)(5) of this title for a provider that is 100 percent renewable under subdivision 8005(b)(1) of this title.
(III) This subdivision (ii) shall apply to existing net metering systems notwithstanding
any contrary provision of 1 V.S.A. § 214 and 2014 Acts and Resolves No. 99, Sec. 10.
(3) The rules shall establish standards and procedures governing application for and issuance
or revocation of a certificate of public good for net metering systems under the provisions
of section 248 of this title. In establishing these standards and procedures:
(A) The rules may waive the requirements of section 248 of this title that are not applicable to net metering systems, including criteria that are generally
applicable to public service companies as defined in this title.
(B) The rules may modify notice and hearing requirements of this title as the Commission
considers appropriate.
(C) The rules shall seek to simplify the application and review process as appropriate
(D) With respect to net metering systems that exceed 150 kW in plant capacity, the rules
shall apply the so-called “Quechee” test for aesthetic impact as described by the
Vermont Supreme Court in the case of In re Halnon, 174 Vt. 515 (2002) (mem.). The rules and application form shall state the components of this test.
(E) The rules shall not waive or include provisions that are less stringent than the requirements
of subdivision 248(a)(4)(J) (required information) of this title.
(F) This subdivision (F) applies to an application for a net metering system with a capacity
that is greater than 25 kilowatts, unless the system is located on a new or existing
structure the primary purpose of which is not the generation of electricity. With
respect to such a system, the rules shall not waive or include provisions that are
less stringent than each of the following:
(i) the requirement of subdivision 248(a)(4)(C) of this title to provide a copy of the application to the Agencies of Agriculture, Food and Markets
and of Natural Resources; the Department of Public Service; the Division for Historic
Preservation; the municipal legislative body; and the municipal and regional planning
commissions; and
(ii) the requirements of subsection 248(f) (preapplication submittal) of this title.
(G) The rules shall establish an expedited registration procedure for net metering systems
of 25 kilowatts and less in size.
(4) This section does not require the Commission to adopt identical requirements for the
service territory of each retail electricity provider.
(5) Each retail electricity provider shall implement net metering in its service territory
through a rate schedule that is consistent with this section and the rules adopted
under this section and is approved by the Commission.
(d) [Repealed.]
(e) If a hydroelectric generation plant seeking approval as a net metering system is subject
to licensing jurisdiction under the Federal Power Act, 16 U.S.C. chapter 12, subchapter
1, the Commission shall require the plant to obtain such approval through means other
than by application for a certificate of public good under section 248 of this title.
(f) Except for net metering systems for which the Commission has established a registration
process, the Commission shall issue a final determination as to an uncontested application
within 90 days following the date of the last substantive filing by a party. (Added 2013, No. 99 (Adj. Sess.), § 4, eff. Jan. 1, 2017; amended 2015, No. 56, § 12, eff. Jan. 2, 2017; 2015, No. 174 (Adj. Sess.), § 13, eff. Jan. 2, 2017; 2017, No. 42, § 7, eff. May 22, 2017; 2019, No. 31, § 6; 2019, No. 81, § 5; 2023, No. 85 (Adj. Sess.), § 457, eff. July 1, 2024; 2023, No. 179 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 38, § 1, eff. July 1, 2025.)