By Andy Cay & Jon Megas-Russell
May 10th, 2011
On May 5, 2011 The Vermont State Senate passed the Vermont Energy Act of 2011. This bill was especially important for solar photovoltaic electricity generation. One, it is now mandatory for all VT utility providers to pay customers for all photovoltaic electricity production at a premium rate of $.20 for every Kilowatt hour generated. Two, the approval process with the Public Service Board for a 5 kilowatt or smaller photovoltaic system has been reduced from the typical four to six weeks to ten days. Three, $2.3 million in bridge funding was allocated for the VT Small Scale Renewable Energy Incentive Rebate Program which means existing incentives will continue.
So why are these three pieces of the legislation important to you as a consumer of electricity in VT?
The premium rate of $.20 per Kilowatt hour offers an additional financial incentive to home and business owners that invest in solar photovoltaics. Previously Green Mountain Power through its own initiative was the only utility company in the state rewarding their customers for solar electricity generation at a comparable rate. Green Mountain Power also purchases excess photovoltaic power generation beyond a customer’s actual consumption. This big step by the Legislature toward a “leveling of the playing field” between the utility companies provides an attractive additional financial incentive for all customers to invest in a photovoltaic system thereby increasing the return on investment and shortening the payback period.
The approval process for a 5 Kilowatt or smaller system now taking ten days or less has a positive effect on the economy. Installers will not be delayed and will be able to complete more projects in a year which will increase the number of jobs in the solar industry. Additionally, as more solar technology is installed it contributes to bringing down the market pricing of solar installations. Furthermore, solar installations aid our region in becoming energy independent as fossil fuel prices soar and as VT Yankee may be shut down.
Lastly, $2.3 million dollars in bridge funding for the VT Small Scale Renewable Energy Incentive Program was passed to extend State rebates which help to fund residential, commercial and industrial projects. This rebate current pays $.75 per watt for residential systems which can equate to a 14% or more reduction of the total cost of a photovoltaic system.