Dive Brief:
- A report by the Vermont Public Service Department finds the state's net metering program is growing fast, with renewable power generated under the tariff doubling since 2012.
- As the expiration date for federal tax credits on solar creeps closer, that growth is expected to get a quick boost with the industry rushing to take advantage of the subsidy before it expires at the end of 2016.
- Caps on the amount of net metering in the state have been adjusted to account for the growth; following a legislative change this year, utilities must now allow net metering up to 15% of their peak capacity, changed from 4%.
Dive Insight:
The Vermont report finds net metering has "experienced rapid growth over the last seven years as the demand for local renewable energy has grown, costs have decreased, and access to renewables has broadened." And solar PV has had the most substantial growth of all.
According to the report, the number of PV systems applying for net metering permits annually has grown by a factor of more than seven since 2008. That rapid growth has driven not only the overall number of net metered systems but also the total growth of permitted net metered system capacity to 57.2 MW. In addition to permitted systems, an additional 6.8 MW of proposed net metered projects have applied for permits but not yet received them, the report said.
But while the growth has been rapid, 64 MW of net metered systems represents "a small fraction of
Vermont’s overall electrical portfolio," the report noted. "If all permitted and constructed, net metered systems to date would produce less than 2% of the electric energy Vermont uses each year or approximately 80 GWh per year."
