Utilities closing solar programs!
What’s the “cap” I keep hearing about?
In Vermont, our state solar program requires our utilities to accept permits for new renewable energy projects until about 3.5% of their power is being delivered by those systems.
When a utility reaches this “cap,” or minimum requirement, it can choose to continue accepting solar permits or not. Without state law governing the solar program, but instead each utility calling its own shots, we have much less ability to predict what will be allowed and what won’t.
Where is my utility?
To date, Green Mountain Power, Vermont Electric COOP, and Hardwick Electric have reached their minimum requirements. That means that lots of Vermonters are going solar – which is great news! But, a mixed blessing…
GMP continues to accept permits for residential solar projects at this time, but plans to significantly limit any larger projects. VEC and Hardwick have closed their solar programs, with just a few weeks notice to the solar industry.
Lyndonville Electric tells us they have room for about a dozen more residential-sized projects. And Hyde Park is down to their last system! Both of these utilities have been clear that they will close up shop when they reach their caps.
We don’t yet know where the remainder of our state’s utilities lie.
Can the “cap” be changed?
Of course. But, it’s not set to be changed until 2017, when Vermont’s new solar program takes effect. We don’t know what that new program will look like.
Why not just wait?
The federal government currently covers 30% of the cost of a new solar project. For most of our customers, that has meant an $8000-10000 refund on their taxes. This incentive expires next year. (We’re counting down the months in which we can still take orders and guarantee the incentive.)
In 2017, this federal support won’t exist.
We know the current program works well for Vermonters – combining government support, strong solar power pricing, and the lowest equipment prices the solar industry has ever seen.
With the uncertainty around the utilities’ caps, we are urging folks to get their solar array permitted as soon as possible to get the good deal available now.