Vermont Business Magazine The Vermont Attorney General’s Office and Department of Public Service provided official guidance to solar companies doing business in Vermont to avoid making deceptive claims for certain solar projects. “The recent proliferation of new solar projects also brings the potential for a new kind of deception,” said Attorney General Sorrell. In certain solar project agreements, including most community solar or net metering credit purchase arrangements, the solar company owns the solar panels, instead of the consumer. Within some of these projects, the solar company also sells the renewable energy certificates/credits (“RECs”) attributed to the electricity generated by those solar panels in a regional market in order to help finance the project.
In such cases, the energy used by the consumer is not, legally speaking, renewable or solar energy (it is simply undifferentiated power or “null electricity”). Therefore, solar companies may not state or imply that the energy consumed from such projects is “solar,” “renewable,” or “clean,” and solar companies should have clear disclosures about the RECs.
The Federal Trade Commission already has established regulations prohibiting deceptive claims about solar projects where the RECs are stripped away from the project. TheSolar Guidanceissued by the State this week advises solar companies to follow those federal guidelines. “All solar companies must take heed of this Guidance and follow the established regulations for solar advertising,” added Attorney General Sorrell.
“Act 56 signed into law by Governor Shumlin in June of this year requires that Vermont’s utilities meet a renewable energy standard similar to those in place in other New England states. As the renewable energy requirements of this law increase over time, the sale of RECs into the regional market for projects in Vermont are expected to diminish,” said Department of Public Service Commissioner, Christopher Recchia. “Solar projects are a vital component of Vermont’s renewable energy goals, and it is incumbent on solar companies to communicate clearly with customers about the terms and benefits of their contracts.” The State’s Solar Guidance was also sent to Renewable Energy Vermont, a collective of over 30 renewable energy companies doing business in Vermont.
The Guidance also contains links for consumer tips and other resources on solar energy. Consumers or businesses mayfile a complaintwith the Attorney General’s Consumer Assistance Program regarding solar deception, or contact[email protected]for more information.
Vermont AG: Dec 8, 2015