by Anne Galloway vtdigger.org
The Vermont House on Wednesday overwhelmingly approved a proposal to lift the cap on how much power utilities can accept from net-metering projects. The current cap is 4 percent; H.702 would raise the limit to 15 percent of its peak demand from the previous year.
The provision sunsets in 2016, when the Legislature would reevaluate the efficacy of the program.
The bill passed 136-8 in a roll call vote on second reading, and elicited brief debate.
Net metering is a service that allows electricity customers to feed excess power, from residential solar panels or other renewable energy projects, back into the grid.
The state has created incentives for net metering to foster private investment in renewable energy, especially solar power, as part of an effort to meet aggressive targets for reducing greenhouse gas emissions and the state’s dependence on fossil fuels. By 2050, the state hopes to get 90 percent of its energy from renewable sources.
Hardwick Electric Department, Vermont Electric Co-op and Washington Electric Co-op all hit the cap in 2013.
Rep. Tony Klein, D-East Montpelier, chair of the House Natural Resources and Energy Committee, listens to testimony on proposed net metering legislation on Jan. 17. Photo by John Herrick/VTDigger
The House Natural Resources Committee proposed lifting the limit so that the smaller, rural utilities could continue to accept net-metered power. Green Mountain Power, the state’s largest utility, was also getting close to the 4 percent mark, according to Rep. Tony Klein, D-East Montpelier, chair of the committee.
The state’s net-metering program began with a 1 percent cap in 2002. The percentage was increased over time to encourage customers to invest in renewable energy. In 2011, net metering was monetized and customers who feed power into the grid can zero out their electricity bills. Klein says the program has taken off because of the incentives. In 2011, the state had 18 megawatts of renewable power; today Vermont generates 38 Mw.
Republicans in the House questioned whether the net-metering incentives shift the cost of renewable power onto other ratepayers.
Rep. Don Turner, R-Milton, minority leader of the House Republicans, said he has not been assured that renewables have no impact on rates.
‘We do have goals for reducing our carbon footprint, but we also have responsibility to economy, to businesses,’ Turner said. ‘We have the highest utility rates in New England. I remain concerned that the work we’re doing on renewables may be driving up utility costs.’
Meanwhile, Governor Peter Shumlin issued the following statement following House passage of the renewable energy net metering bill:
‘Today the House of Representatives gave its strong backing to an effort to expand Vermont’s net metering program, which has helped our state become a national leader in solar energy and green jobs. I thank the House, and in particular the Members of the Committee on Natural Resources and Energy, for their thoughtful and thorough work to advance this legislation.
"There is broad consensus among utilities, renewable energy businesses, and environmental advocates in support of the net metering legislation. Going forward, my Administration will work with the Senate, and leaders such as Senators Tim Ashe and Bob Hartwell, to ensure that Vermonters continue to benefit by going solar.’
Renewable Energy Vermontalso issued a statement:
"The renewable energy industry, and the thousands of Vermonters who have chosen to invest in renewable energy, thank the House Natural Resource and Energy Committee, the House and the Administration for quick passage of this bi-partisan, broadly supported bill. Vermont has been within the top ten states of solar installations per capita for the last few years -- and this bill makes it possible to continue moving forward towards a clean, renewable energy future; stably-priced energy; and local job growth. REV looks forward to continuing to work with all stakeholders and elected officials to see this bill passed through the Senate by Town Meeting day - just before the snow starts to melt, and Vermonters start calling solar installers."