Solar News

A nearly all inclusive renewable energy bill was passed in Vermont last Wednesday. Being the first of its kind, the Vermont Energy Act of 2011 (H.56) will streamline the installation of small-scale solar energy systems, setting an example for other U.S. states to follow. The new registration process for solar installations of 5 kW or less will replace the often cumbersome and expensive solar permitting program.

Studies have shown that traditional permitting programs add approximately $2,500 in costs to individual solar installations in the U.S. Within a single area, a solar installer may encounter dozens of local ordinances, ranging from building restrictions to electric codes. Such permit requirements often run up the installation price tag and delay the installation for months. According to NewNet, one solar company estimates that streamlining the permitting process could provide a $1 billion stimulus to the U.S. solar industry over the next five years.

Under the new regime, Vermont solar customers will be able to install a solar energy system 10 days after filling out a registration form and compliance agreement stating that the system will meet interconnection requirements. The utility service will have 10 days to raise any grid connection issues; otherwise a ‘Certificate of Public Good' will be granted by the state government and the project may be installed. This process will go into effect January 2012 according to this article from The Huffington Post.

H.56 also expands upon Vermont's net-metering policy. Solar system hosts will receive a 20 cent per kW hour (minus the local retail electric rate) rebate. A Solar Industry Magazine report predicts that most customers will receive a 1 to 6 cent per kW hour incentive for producing solar energy. Additionally, the size limit of a net-metered project has changed under the new law, increasing from 250 kW to 500 kW.

Lastly, the legislation reinforces and updates Vermont's Property Assessed Clean Energy (PACE) program to address the objections raised last summer by Fannie Mae and Freddie Mac-which basically brought a halt to PACE programs throughout the country.

Governor Peter Shumlin stated during the bill signing ceremony, "There is fiscal and environmental urgency for Vermont to move off fossil fuels and toward sustainable sources of power." Shumlin also noted that the state is working on an even more expansive energy bill, due Oct. 15. The plan will spark further legislation and work towards making Vermont the leading state in renewable energy.

With the recent passing of H.56, Vermont has come up with an innovative way to address the financial and temporal problems typically associated with small-scale solar systems. Many households and businesses believe solar systems require too much upfront capital and take too much time to break even. But by cutting the red tape associated with solar permitting, Vermont is showing the rest of the country that solar energy is not only feasible, but a necessary step should we wish to internalize our energy needs.