Overview
The VT Public Utility Commission’s Biennial Update (effective August 1, 2026 - August 1, 2028) sets the Siting Adjustor at 5¢/kWh of total solar production and maintains a 0¢/kWh REC Adjustor when transferring REC ownership (or +5¢/kWh to retain).
EPC Requirements:
REC Transfer: Select "Transfer Ownership" on the CPG registration.
Customer Education: Inform customers of the non-bypassable 5¢/kWh production charge billed for the system's lifetime.
Fee Coverage: Cover utility production meter and grid upgrade fees directly or reimburse the customer, as these will appear on their first statement.
Transferring RECs, Siting Adjustor, and Production Meter Fees
REC Transfer:
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REC Transfer Requirements
Policy Mandate: Vermont’s net metering policy requires transferring Renewable Energy Certificates (RECs) to the utility. Retaining RECs incurs a 4¢/kWh charge on total solar production.
Combined Charges: Retaining RECs adds 4¢/kWh on top of the unavoidable 5¢/kWh Siting Adjustor, totaling an 9¢/kWh monthly charge on total production for the life of the system.
LightReach Policy: Palmetto LightReach explicitly prohibits customers from retaining RECs.
Partner Action: Installation partners must select "Transfer Ownership" of RECs when completing the Certificate of Public Good (CPG) application via the ePUC Net Metering Registration portal.
Siting Adjustor:
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Utility Assessment: The Vermont Public Utility Commission (PUC) mandates a non-bypassable 5¢/kWh Siting Adjustor charge on total solar production, billed monthly for the life of the system.
Rate Accommodation: LightReach factors this fee into its PPA ceiling rates.
Partner Action: Set clear expectations with customers regarding the appearance of this 5¢/kWh charge on their monthly utility statements.
Meter Fees & Grid Upgrade Costs:
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Fee Structure: Vermont utilities charge production meter installation fees and potential grid upgrade costs directly on the customer’s first net metering statement.
EPC Obligation: LightReach requires EPC partners to cover these costs proactively on the customer's behalf via phone (credit card) or mail (check) directly to the utility.
Customer Communication: Explain to customers that while these line items will appear on their initial statement, the pre-payment will offset the balance. Alternatively, EPCs may reimburse the customer directly.
Utility Fees:
Green Mountain Power
GMP applies a $110 production meter fee for PV to the account holder’s first net metering statement. A second $110 may be due if a utility owned battery storage meter is installed. There is also a potential $37/kW TGFOV Fee (Transmission Ground-fault Overvoltage Upgrade) on the account holder’s first utility bill after interconnection if the system is under 15 kW AC and identified in one of 60+ circuits on this map. Per GMP, the TGFOV fee is not required on storage.
Vermont Electric Cooperative
VEC charges $273.80 ($33 single member fee, $160.80 for the meter, and $80 for installation) on the first net metering statement. There may also be grid upgrades, for example a larger transformer, which should be identified by VEC within 10 business days of the initial application.
Burlington Electric Department
BED charges $150 on the first net metering statement for residential production meters. There may also be grid upgrades. BED staff confirmed they can invoice the installer for both fees as long as you request it
FAQs
Question | Answer | |
1. | When are these fees applied to the customer’s account? | The fees are applied to the customer’s first net metering statement after installation |
2. | What does Palmetto LightReach require EPC partners to do regarding these fees? | EPC partners must proactively pay the fees on the customer’s behalf |
3. | How can EPCs proactively pay these fees on the customer’s behalf? | They can either call the utility to make a credit card payment or mail a check to apply a payment to the customer’s account. |
4. | Will the charges still appear on the customer’s first net metering statement even if the EPC has paid them? | Yes. The charges will still appear, but the EPC’s payment will offset them. |
5. | What alternative option do EPCs have if they choose not to pay the utility directly? | They may reimburse the customer by making a direct payment to the customer instead. |