Vermont net metering: how Green Mountain Power credits your solar

Vermont's net metering policy is among the strongest in New England. The state requires all utilities — Green Mountain Power, Burlington Electric Department, and the state's electric cooperatives — to credit residential solar owners at the full retail electricity rate for excess generation. Vermont also offers group net metering, a policy rare among states, that allows solar installations to be shared among multiple accounts. This guide covers how Vermont net metering works in 2026, how credits are calculated and billed, and what group net metering means for Vermont homeowners who cannot or do not want individual rooftop systems.

How Green Mountain Power net metering works

Green Mountain Power credits excess solar generation at the full retail rate — approximately $0.22 to $0.28/kWh in 2026 depending on your GMP rate class. Credits appear on your monthly bill, reducing what you owe for grid-consumed electricity. Unused credits carry forward month to month. Vermont's net metering program does not have a specific annual true-up requirement under GMP's standard residential terms, though your interconnection agreement will specify how year-end surplus credits are treated.

GMP's billing is straightforward because Vermont does not impose time-of-use rates on most residential customers: the net metering credit rate is consistent throughout the day. This eliminates the complexity of California-style programs where export credit rates vary dramatically by hour.

Vermont group net metering: a national model

Vermont's group net metering program (30 V.S.A. § 219a) allows a single solar installation to distribute credits among up to 50 participating accounts. Here is how it works: a property owner installs a solar array that is larger than their own consumption needs. Participating neighbors, relatives, or community members sign agreements to receive a share of the net metering credits generated by that array. Credits are distributed to each participant's utility account in proportion to their ownership or participation share. Participants pay the solar owner for their credits at an agreed rate — typically below their current retail electric rate, making it cheaper than grid power, while the solar owner earns revenue from the credit sales.

Group net metering is particularly valuable for Vermont homeowners whose roofs are shaded by trees, face the wrong direction, or are structurally unsuitable for rooftop solar. It is also increasingly used by Vermont landlords to provide solar credits to tenants, and by farmers and agricultural landowners who have barn roofs or field areas suitable for solar but may not need all the credits themselves.

Burlington Electric Department and Vermont electric cooperatives

Burlington Electric Department (BED) is a municipal utility serving Burlington, Vermont's largest city. BED offers net metering for Burlington homeowners with solar, but as a municipal utility it has its own rates, interconnection standards, and program terms separate from GMP. Burlington homeowners should contact BED directly for current net metering credit rates and the interconnection application process. Vermont Electric Cooperative (VEC) and Washington Electric Cooperative (WEC) also offer net metering programs for their rural cooperative members under their own board-set terms. If you are served by a cooperative, contact them directly rather than assuming GMP's terms apply.

Vermont net metering and your payback

At GMP's retail rate of $0.22 to $0.28/kWh, Vermont net metering credits are meaningfully valuable — roughly in line with Massachusetts, slightly below New York in high-rate areas. Vermont's lower sun hours (3.8 to 4.3 peak hours daily) reduce total annual production per system compared to southern states, which is the primary driver of Vermont's longer payback window (7 to 10 years) versus Florida or Puerto Rico. But over a 25-year system lifespan, Vermont solar still delivers strong returns — and Vermont electricity rates have consistently risen over time, adding to the long-term value of a fixed-cost solar installation. Full Vermont solar cost breakdown.