How Net Metering Works in Vermont (2026) | EnergyPros
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How net metering works in Vermont

What your exported power is actually worth in Vermont, how the credit is calculated, and what that means for sizing a system.

Vermont net metering, and why timing matters

Vermont operates net metering in categories by system type, with an adjustor applied to the credit rate.

The Category I adjustor has been cut in seven consecutive years. Each reduction applies to new interconnections; existing systems are generally grandfathered at the rate in effect when they connected.

Practically, that means the value of a Vermont system is partly a function of when you apply. A few months can matter in a way it does not in Pennsylvania or New Jersey.

Burlington is served by Burlington Electric Department, a municipal utility that sets its own rules and is not bound by the state adjustor.

Sources: Vermont Public Utility Commission.

What net metering is not

Net metering is a billing arrangement, not a rebate. Nobody sends you a cheque. Your meter runs backward and your bill goes down.

It also does not eliminate your bill entirely. Fixed customer charges continue regardless of usage, and most utilities true up on an annual cycle rather than paying cash for a surplus.

Which is why system sizing matters: a system built well beyond your annual usage produces credits worth far less than the ones that offset what you actually consume.

The federal residential credit ended. Here is what that means.

The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy with cash or a loan in 2026, you cannot claim it. Any site still advertising a 30% federal credit for a homeowner purchase is running outdated information.

What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible.

EnergyPros does not provide tax advice — confirm your situation with a tax professional.

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Questions homeowners actually ask

Does net metering zero out my bill?

Not usually. Fixed customer charges continue regardless of how much power you generate, and most utilities settle any annual surplus at a rate well below retail. A well-sized system substantially reduces the bill; it rarely eliminates it.

How big a system should I get?

In most cases, one sized to your actual annual usage. Building well beyond that produces credits that are worth far less than the ones offsetting what you consume, because surplus is typically trued up at avoided cost rather than retail.

What happens to my credits if I move?

Net metering credits generally stay with the meter rather than the person. If you sell, the arrangement transfers with the property. If you are on a lease or PPA, that agreement transfers to the buyer — your installer handles the paperwork.

Does a battery change the net metering math?

It can, considerably — especially where exports are credited below retail. A battery lets you use your own production during expensive hours instead of exporting it cheaply. In states with 1:1 retail credit the case is weaker; in net billing states it is usually decisive.

Vermont solar guides