Vermont’s Feed-in-Tariff
What’s Vermont’s feed-in-tariff?
The feed-in-tariff, enacted in 2009, allows Vermont homeowners with solar panels (and other small producers of renewable energy) to sign long-term contracts for guaranteed income from the extra energy they produce. Homeowners can sign contracts with utilities for 10-25 years, and new participants can join the program until the statewide limit of 50 MW is reached.
How much can homeowners earn?
Solar power earns more than other forms of renewable energy in the program, at 30 cents per kilowatt-hour. The Vermont Public Service Board can adjust these rates to make sure they’re providing sufficient incentive to quickly grow renewable energy in the state, but not excessive incentive.
Can the feed-in-tariff be used with other incentives?
Homeowners are also eligible for the federal solar tax credit and other federal incentives. Some projects can get loans from the Vermont Clean Energy Development Fund or the Vermont Economic Development Authority (VEDA). Other incentives are available from Vermont’s Solar & Small Wind Incentive Program.
How does the feed-in-tariff compare to net metering?
The feed-in-tariff offers much higher rates for the energy you produce. However, the net metering program has an easier, streamlined application process, and no application fees. Participants in the feed-in-tariff program will also need to pay a small monthly administrative fee, unlike net metering. Customers using net metering may be able to get additional incentives, like the bonus available from Green Mountain Power (6 cents per kilowatt-hour).
Learn more
Visit the VermontSPEED website to learn how to sign up for the feed-in-tariff program.
