Does Vermont Have Community Solar Laws?

Vermont is one of the earliest adopters of community solar in the United States and continues to serve as a model for small, clean-energy-focused states. The foundation for Vermont’s shared solar market is the state’s Net Metering Rule (Rule 5.100), which the Vermont Public Utility Commission (PUC) established in 2014 and later expanded to include group net-metering systems. These rules formally legalized community solar projects and allow multiple participants to share the energy output of a single solar installation.

Under Vermont’s group net-metering policy, households, renters, businesses, and municipalities can join together to form a “group” that co-owns or subscribes to a solar system. The utility applies credits to each participant’s electricity bill based on the share of generation assigned to them. This arrangement effectively functions as Vermont’s version of community solar energy, even though the term “community solar” is not used directly in the legislation.

A community solar project in Vermont can be owned by the participants themselves, by a developer, or through a cooperative structure. The maximum system size under current regulations is 500 kilowatts (kW) for standard net-metered systems, though larger arrays can be built under special conditions with PUC approval.

Vermont’s Department of Public Service (DPS) and the Renewable Energy Standard (RES) also play key roles in promoting solar development. Utilities must obtain a growing percentage of their electricity from renewable sources, which has fueled significant investment in community solar farms statewide.

The state has also implemented strong low- and moderate-income (LMI) access provisions. The Clean Energy Development Fund (CEDF) and various utility-run incentive programs help lower barriers for income-eligible households, providing grants and rebates that reduce the cost of joining a Vermont community solar project.

Together, these policies have positioned Vermont as one of the most inclusive and forward-thinking clean-energy markets in the country.

What Is Community Solar?

Community solar gives multiple electricity customers the ability to share power generated by a single solar installation rather than installing residential solar panels individually. The electricity produced by the shared system flows into the utility grid, and participants, known as subscribers, receive bill credits proportional to their share of the project’s total energy output.

The concept is especially important in Vermont, where many homes are shaded by forest canopies or located on uneven terrain. For these residents, installing rooftop solar can be impractical. Community solar projects make renewable energy accessible to anyone who pays an electric bill, regardless of property type or ownership.

Community solar farms are ideal for residents who:

• Rent their homes or live in apartments or condominiums
• Have shaded or non-southern-facing roofs unsuitable for residential solar panels
• Want to reduce their carbon footprint without managing an installation
• Prefer predictable energy bills and long-term cost savings
• Wish to support renewable energy development in their community

While residential solar systems provide direct ownership and eligibility for tax credits, community solar has its own unique benefits:

• No installation required: Subscribers avoid the cost and hassle of installing panels
• Lower upfront costs: Most Vermont programs offer low or zero-upfront subscription options
• Flexibility: Subscriptions can be transferred or canceled if the customer moves within the same utility territory
• Accessibility: Renters, non-profits, and small businesses can participate
• Collective impact: A single community solar project can offset thousands of tons of greenhouse-gas emissions annually

This shared model helps extend solar access to every sector of Vermont’s population and supports the state’s long-term clean-energy and climate goals.

Why Community Solar?

Vermont’s focus on community solar reflects its strong environmental values and practical energy needs. The state has ambitious renewable-energy targets, aiming to source 90% of total energy consumption from renewables by 2050. Expanding shared solar projects is central to achieving that goal.

Environmentally, community solar farms allow the state to reduce dependence on out-of-state fossil fuels. Each megawatt of solar power generated within Vermont cuts carbon-dioxide emissions by roughly 1,000 tons per year, improving air quality and contributing to the fight against climate change.

Economically, Vermont residents face relatively high retail electricity prices, averaging $0.22 to $0.25 per kilowatt-hour (kWh) as of 2025. Joining a community solar project provides immediate and lasting savings, with subscribers typically saving 10 to 20% on their monthly utility bills.

Subscribers see credits applied directly to their Green Mountain Power, Washington Electric Cooperative, or Vermont Electric Co-op bills, depending on their location. These credits reduce electricity costs without requiring participants to buy, install, or maintain a system.

The benefits of community solar extend beyond individual households. For local economies, shared-solar development creates installation and maintenance jobs while helping small municipalities and school districts lower their energy expenses. For the state grid, distributed solar generation improves resilience and reduces transmission losses.

Most importantly, Vermont’s community solar framework promotes energy equity. The state’s policies intentionally prioritize participation from low-income households through targeted incentives and cooperative models that distribute ownership shares at reduced rates. Programs like the Community Energy Partnership (CEP) and the CEDF Solar Incentive Program ensure that clean-energy savings reach all Vermonters, not just homeowners with suitable rooftops.

Are There Community Solar Projects in Vermont?

Vermont’s community solar landscape is among the most mature in New England. Since the 2014 adoption of the group net-metering rule, the number of community solar farms has grown steadily, with hundreds of active and proposed projects spread across the state’s 14 counties.

The Vermont Public Utility Commission reports that as of 2025, the state has more than 350 operational group net-metered solar arrays, totaling over 200 megawatts (MW) of installed capacity. Many of these facilities operate under cooperative or municipal ownership structures, ensuring local control and reinvestment of revenues.

Active and Upcoming Projects

Some of the most notable community solar projects in Vermont include:

• Middlesex Community Solar Array: A 500-kW installation jointly owned by local residents through a cooperative model. It serves around 150 households in the Central Vermont region
• Putney Solar Farm: Developed by Encore Renewable Energy, this project provides affordable subscriptions to low-income participants and local businesses
• St. Albans Community Solar Garden: A rural project built on former agricultural land, offering discounted participation through Vermont Electric Cooperative
• Rutland Community Solar Center: A municipally supported array that supplies power to schools, nonprofits, and homeowners
• Bennington Solar Partnership: A collaboration between Green Mountain Power and local investors designed to expand renewable access in southern Vermont

These community solar projects demonstrate how public-private collaboration and community ownership can accelerate renewable-energy adoption across a small, rural state.

Joining a Vermont community solar program is straightforward. Most utilities and developers follow similar processes:

• The customer chooses an available project within their utility’s service territory
• They sign a subscription or ownership agreement detailing their energy share and billing terms
• The utility applies monthly energy credits to their bill based on their portion of electricity generated by the project

There is no requirement for property ownership, and participation is open to homeowners, renters, and businesses. Subscribers can typically adjust or transfer their shares if they move or change energy usage.

How Does Community Solar Work in Vermont?

To understand how community solar works, it helps to look at the technical and billing structure that supports it. A community solar project is a shared solar energy system, usually ground-mounted, that connects directly to the local electric distribution grid.

When the solar farm generates electricity, the output is measured by the utility and distributed as credits among all subscribers. These credits offset each participant’s electricity usage, reducing their monthly bill. The process is automatic and uses Vermont’s group net-metering system, ensuring transparent credit allocation.

Subscribers continue receiving electricity from their utility as usual; their bill simply reflects the solar credits earned from their community share.

Developers and subscribers also benefit from federal and state incentives that make community solar energy affordable:

• Federal Investment Tax Credit (ITC): Developers can claim a 30% tax credit on project costs, reducing the capital expense of building solar farms
• Vermont Renewable Energy Standard: Utilities earn compliance credits for buying energy from renewable sources, supporting project economics
• Renewable Energy Certificates (RECs): Each megawatt-hour generated creates a REC that can be sold or traded, providing extra revenue that helps lower subscriber costs
• Green Mountain Power Incentive Programs: Vermont’s largest utility offers performance-based incentives for new solar installations, indirectly benefiting community projects and subscribers

The billing and crediting process is handled entirely by the utility, ensuring that participants experience a seamless transition to community solar savings without the complexities of equipment ownership or maintenance.

How Much Does Community Solar Cost in Vermont?

The community solar cost in Vermont depends on the project type, subscription size, and utility service area. Most programs use a pay-as-you-go model, where subscribers pay a fixed rate for their share of solar production, which is lower than the utility’s retail electricity rate.

As of 2025, Vermont’s average retail electricity price is around $0.23 per kilowatt-hour (kWh). Subscribers in community solar projects typically pay between $0.18 and $0.21 per kWh, generating an average savings of 10 to 20% on their monthly bills.

Some programs offer fixed-discount models that guarantee consistent savings, while others use variable rates tied to energy production. The table below provides an overview of average community solar cost and potential savings for Vermont households:

These subscription fees cover maintenance, insurance, project operations, and administrative costs. Subscribers do not own the panels but share in the environmental and financial benefits of the system’s energy production.

For low-income Vermonters, many programs offer additional support. The CEDF Solar Incentive Program provides upfront cost reductions and guarantees energy savings of at least 20% per year. Local cooperatives and non-profits also administer grant-funded subscriptions for eligible households, ensuring that Vermont’s community solar farms remain accessible to all income levels.

Through a combination of innovative group net-metering laws, supportive state incentives, and local ownership models, Vermont has created a thriving community solar market. The result is a clean-energy network that empowers residents, strengthens communities, and helps the Green Mountain State move steadily toward its renewable-energy future.