2026 Changes to Net Metering

In May 2026, the Vermont Public Utility Commission (PUC) issued its latest Net Metering Biennial Update Order. The Commission rejected proposals that would have frozen the blended residential rate and retroactively reduced compensation for existing net-metering customers. However, it approved a 1 cent/kWh reduction in the siting adjustor for Category I and II systems, reducing compensation for many new net-metered solar projects.

The changes come at a challenging time for solar development. Following the expiration of the Federal Residential Clean Energy Tax Credit, the cost of installing a new residential solar array already increased substantially. Together with the PUC’s decision, these changes may make it more difficult for some homeowners and businesses to achieve the same financial returns that were available under previous net-metering rules.