Vermont Business MagazineIn May, VEC reached its annual cap on net metering installations. To control the cost of the net metering program, the VEC Board of Directors voted not to exceed the annual cap, and VEC asked the Public Service Board (PSB) if VEC could continue accepting net metering applications in 2015 to count towards the 2016 annual cap. In September, the PSB gave its approval for this request. The PSB ruled that projects that submitted applications since June can construct in 2015 and even interconnect with VEC’s permission.Net metering is the program that allows members to install small-scale renewable generation such as solar panels and wind turbines.
As of the beginning of November, VEC reached its annual cap for 2016. In a statment it said it will not be accepting any more projects larger than 15 kilowatts for 2016. However, it will continue to accept projects 15 kilowatts and smaller through November to accommodate members who have already begun the process of working with installers. Starting onDecember 1, 2015, the net metering program will close to all new projects for 2016.
For projects larger than 15 kW starting now and projects 15 kW and smaller startingDecember 1, 2015, VEC plans to respond by asking the PSB to issue Certificates of Public Good with the following conditions: 1.) that the project not be constructed or interconnected until afterJanuary 1, 2017; 2.) that the rules of the net metering program that starts onJanuary 1, 2017will apply to these projects (the PSB will be issuing a draft rule soon); and 3.) if projects fall out of the 2015 or 2016 queue and space becomes available, VEC will notify applicants in the 2017 queue on a first come-first served basis.
What does this mean for members who want to install solar?
The way to reserve space in the net metering program is to submit a net metering application. Members interested in installing solar arrays 15 kilowatts and smaller in 2016 should submit an application in November to ensure a spot in the program. The application can be found on the PSB website. Members can also contact VEC at1-800-832-2667to receive an application by mail or email.
The PSB ruled that members who apply in 2015 can proceed with construction as soon as their net metering application is approved. However, interconnection in 2015 cannot happen without approval from VEC. We are considering requests for interconnection as they come in.
What is the net metering cap based on?
In 2014, the legislature raised the net metering cap to 15 percent of a utility’s peak demand. When the law went into effect, VEC was at 4 percent of peak demand. The statute sets an additional 4 percent aside for VEC’s Co-op Community Solar project; and VEC is required to allocate the remaining 7 percent equally among 2014, 2015, and 2016 (ie 2.33 percent for each year).
In 2017, there will be a new net metering program. The PSB will issue a draft of these rules in the next couple months.
Vermont Electric Cooperative, Inc, a member-owned Cooperative founded in 1938, is Vermont’s third largest electric utility, serving approximately 34,000 members in rural Vermont.