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H 716

An act relating to the net metering formula

2025-2026 Regular Session Introduced by Chris Morrow

H.716 caps the negative adjustor for excess solar credits at -$0.04 per kWh and removes any negative adjustor on behind-the-meter consumption.

Read first time and referred to the Committee on Energy and Digital Infrastructure
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Bill Summary · H 716

Bill overview

  • Bill: H.716
  • Session: 2025-2026 (Vermont)
  • Sponsored by: Rep. Christopher Morrow (primary); cosponsor listed as Rep. Morrow (likely intentional duplication in provided text)
  • Committee: House Committee on Energy and Digital Infrastructure
  • Introduction date: 2026
  • Effective date: July 1, 2026

Purpose and intent

H.716 proposes changes to Vermont’s net metering formula. Its stated purpose is to:
- Freeze the negative adjustor on net-metered solar production.
- Eliminate the negative adjustor on behind-the-meter consumption.
These actions are intended to alter how net metering credits and charges are calculated for net metering customers.

Key provisions

  • Net metering framework: The bill directs the Vermont Public Utility Commission to adopt and implement rules governing the installation and operation of net metering systems, as is currently standard, but with the following targeted changes embedded in the statute.
  • Credit determination for excess generation: The bill continues to require rules for how net metering credits are applied to a customer’s bill and how long credits can be carried, with specifics to be defined by the Commission.
  • Negative adjustor on net-metered solar production: The bill sets a cap on the negative adjustor that can be applied to the calculation of credits for excess solar generation. Specifically:
    • The negative adjustor on net-metered solar production shall not exceed -$0.04 per kWh.
  • Behind-the-meter consumption: The bill eliminates any negative adjustor on behind-the-meter consumption.
    • Behind-the-meter consumption is defined as electricity used or stored on-site that does not pass through the electric meter or reach the grid.
  • Other net metering rules: The bill preserves the general framework that credits, their application on the customer’s bill, and the period during which credits can be used, revert to the interconnecting provider after the designated period, subject to future rulemaking by the Commission.

Affected parties and impacts

  • Net metering customers (primarily private solar and on-site generation users): Will see changes in how credits for excess generation are calculated and applied.
    • The cap on the negative adjustor lowers the potential deduction on the credit for exported solar, potentially increasing the value of excess generation credits.
    • Removing any negative adjustor on behind-the-meter consumption removes prospective penalties or adjustments related to on-site energy use that does not go to the grid.
  • Utilities and interconnecting providers: Credit mechanics and settlement timing will still be governed by Commission rules, but with the adjusted parameters for credits and behind-the-meter treatment.
  • Solar developers, installers, and renewable energy advocates: The change to credit calculations could affect project economics and customer payback.
  • Vermont residents and ratepayers: Indirectly affected through changes in net metering economics that can influence adoption of solar and on-site generation.

Procedural and timeline details

  • Effective date: July 1, 2026.
  • Implementation path: The Vermont Public Utility Commission is tasked with adopting and implementing the necessary rules to govern net metering under the new framework.
  • Legislative process: Introduced and referred to the House Committee on Energy and Digital Infrastructure; the bill has undergone several committee hearings and discussions (as indicated by the supporting documents and meeting logs).

Summary

H.716 seeks to adjust the net metering formula by capping the negative adjustor for excess net-metered solar generation at -$0.04 per kWh and removing any negative adjustor for behind-the-meter consumption. The bill directs rulemaking to the Public Utility Commission to define credit mechanics, application on bills, and credit-usage periods, while maintaining the overall net metering framework. The changes take effect July 1, 2026, with ongoing regulatory oversight to finalize the implementation.

Compiled from official sources — confirm details with the bill’s official record.

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