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Vermont shared-solar economics are back on the table

Vermont · Regulation

Vermont shared-solar economics are back on the table

The rule that decides what a Vermont association's shared solar array is paid for its output is being rewritten, and the proceeding is open now.

The Vermont Public Utility Commission entered an Order Opening Rulemaking in Case No. 26-1786-RULE on September 9, 2026, to revise Commission Rule 5.100, Regulations Pertaining to Construction and Operation of Net-Metering Systems.1

Nothing has changed yet. Rule 5.100 stays in force until amended. This is the opening of the proceeding, and it is where the arguments get made.

Why the Commission says it is doing this

The order recites that Vermont has more than 390 MW of net-metered capacity out of more than 600 MW of total distributed solar, against a peak load of roughly 1,000 MW — distributed solar at 71.7 percent of peak, far ahead of any neighbouring state. Distributed solar has pushed Vermont's peak after sundown, reducing behind-the-meter value.

And the number the proceeding turns on: a 2026 residential net-metering system is compensated at roughly $0.1571 per kilowatt-hour for excess generation against roughly $0.105 for utility-scale — about a third more. The Commission says it will examine “whether this cost differential is justified.”

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Where an association's array sits in this

Group net metering under Rule 5.100 is the mechanism by which a Vermont condominium or homeowners association shares a single array across many units and many meters. One array on common land, credits allocated across the members' accounts.

An honest caveat is owed here: the order does not mention group net metering, adjacent parcels, multi-family housing, condominiums or homeowners associations anywhere. The relevance is real but derived. The Commission also says expressly that it “will not address proposed changes to other aspects of the rule until later in this proceeding”, so group provisions are a later phase.

The sentence that protects an existing array

The order commits that any new framework “should provide a transition for pre-existing net-metering systems that reflects those system owners' reasonable investment-backed expectations based on the compensation structure that existed at the time they filed a complete application.”

An association that built an array on the strength of a specific credit rate has a stated basis for protection. An association considering one has no such assurance, and faces a live risk that the economics change before its certificate of public good issues.

How to be heard

The Commission scheduled a virtual workshop for October 2, 2026 at 9:30 a.m., with further workshops anticipated. No comment deadline is set in the opening order.

Participation is a governance question as much as an energy one. A Vermont board committing the association to a position in a state proceeding is spending association money and taking a position on behalf of owners who may disagree. 27A V.S.A. § 3-108 requires ten days' notice of each board meeting with the agenda, and requires that owners be given “a reasonable opportunity at any meeting to comment regarding any matter affecting the common interest community.”

Act 38 of 2025 (S.50), signed May 28, 2025 and effective July 1, 2025, amended 30 V.S.A. § 8010(c)(1)(G) and directed the Commission to update Rule 5.100 so that ground-mounted photovoltaic systems of 25 kW and less qualify for expedited registration — previously an effectively roof-mounted path — with legislative intent that the Commission allow it before the rules catch up.2

For an association whose roofs are unsuitable, shaded, or owned as common elements it does not want to penetrate, ground-mount on common land is frequently the only option. That is a materially faster path than existed before.

And one thing an association-owned system is not

Act 142 of 2024, Sec. 15, amended 30 V.S.A. § 201 to define “thermal energy exchange network” and expressly excluded “a mutual benefit enterprise, cooperative or common interest community that is owned by the persons it serves and that provides thermal energy exchange services only to its members.”

A Vermont association running a shared ground-source or district heating loop for its own members is not a regulated utility.

What to watch next

The October 2, 2026 workshop, and whichever later phase of Case No. 26-1786-RULE takes up the group provisions. The docket is the place for an association to say what a change would do to an array its owners already paid for.

Related Vermont HOA Topics

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  1. Order Opening Rulemaking and Notice of Workshop, Case No. 26-1786-RULE (Sept. 9, 2026) — Vermont Public Utility Commission ↩
  2. Act 38 of 2025 (S.50) as enacted — Vermont General Assembly ↩

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