Skip Navigation

The U.S. Department of Energy and the North Carolina Solar Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook
Vermont

Vermont

Incentives/Policies for Renewables & Efficiency

Printable Version
Standard Offer for Qualifying SPEED Resources   

Last DSIRE Review: 04/01/2013
Program Overview:
State: Vermont
Incentive Type: Performance-Based Incentive
Eligible Renewable/Other Technologies: Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Municipal Solid Waste, Anaerobic Digestion, Small Hydroelectric
Applicable Sectors: Commercial, Industrial, Agricultural, Owners of Qualified SPEED Resources
Maximum Incentive:Varies by technology
Terms:Long-term contracts of 10-25 years for solar and 10-20 years for other technologies
Eligible System Size:Maximum system capacity is 2.2 MW; overall cap of the standard offer program is 127.5 MW
Equipment Requirements:Effective date: 09/30/2009
Ownership of Renewable Energy Credits:RECs are transferred to the utility, except in the case of farm methane generators (who maintain RECs)
Start Date:09/30/2009
Web Site: http://vermontspeed.com/standard-offer-program
Authority 1:
Date Enacted:
30 V.S.A. ยง 8001 et seq.
06/15/2004 (subsequently amended)
Authority 2:
Date Enacted:
CVR 30 000 054. 4.300
09/10/2006 (subsequently amended)
Authority 3:
Date Enacted:
Date Effective:
Order Establishing A Standard-Offer Program for Qualifying SPEED Resources
09/30/2009
09/30/2009
Authority 4:
Date Enacted:
Final Order Standard Offer Price Determination for SPEED Resources
01/15/2010
Authority 5:
Date Enacted:
Date Effective:
Order Amending Standard Offer Rates
01/23/2012
03/23/2012
Authority 6:
Date Enacted:
Date Effective:
S.B. 214 (Public Law 170)
05/18/2012
05/18/2012
Authority 7:
Date Enacted:
Order to Establish Prices and Programmatic Changes
03/01/2013
Summary:

Note: The first RFP for the new competitive award process has passed; applications were accepted through May 1, 2013. See the program web site for information regarding future solicitations.

In May 2009, Vermont enacted legislation requiring all Vermont retail electricity providers to purchase electricity generated by eligible renewable energy facilities through the Sustainably Priced Energy Enterprise Development (SPEED) Program via long-term contracts with fixed standard offer rates. This policy, commonly known as a "feed-in tariff," is intended to provide a reasonable return on investment to renewable energy facility developers, thereby spurring deployment of renewable energy.

Eligible renewable energy facilities are certain qualifying SPEED resources (including solar, wind, biomass, landfill gas, farm methane derived from agricultural operations and energy crops, and hydropower facilities) up to 2.2 megawatts (MW) in capacity that are commissioned on or after September 30, 2009. SPEED projects must apply for and be granted a "Certificate of Public Good." Projects 150 kW and less may apply for the "Certificate of Public Good for Net Metered Systems." Eligible wood biomass resources may only receive the standard offer if the plant's system efficiency is 50% or greater.

In 2013, the Vermont Public Service Board (PSB) established a new market-based pricing mechanism per S.B. 214 (Act 170). Beginning in 2013, contracts are awarded though a Request for Proposal (RFP) process, with RFPs released annually on April 1. The PSB set avoided-cost rates to be used as annual per-kWh cost caps for contracts. Contracts will be selected competitively based on the proposed $/kWh structure. The full avoided-cost schedule is available in the RFP and here. The RFPs will be capped at 5 MW capacity each year from 2013-2015, 7.5 MW each year from 2016-2018, and 10 MW each year in 2019 and 2020.  Five hundred kW of this cap is reserved for utilities each year from 2013 to 2015; 1.125 MW is reserved in 2016-2018, and 2 MW is research each year in 2019 and 2020.

The long-term contracts are 10 to 25 years for solar and 10 to 20 years for all other technologies. As a condition of the standard offer, the renewable energy credits (RECs) generated are transferred to the retail electric provider that purchases the power from the renewable energy facility, except in the case of a facility using methane from agricultural operations. In that case, the plant owner retains ownership of the RECs and may sell them if desired. Retail electric providers and owners of renewable energy facilities may enter into voluntary contracts with different terms than the standard offer contract terms at their discretion. The PSB is required to establish standard offer contract and pricing for existing hydroelectric plants by January 15, 2013. (The capacity of existing hydro will not count toward the cumulative program cap.)

The PSB issues annual reports on the SPEED Standard Offer Program to the legislature every January. The first report of the standard offer to the legislature in January 2011. The second report was issued in January 2012.

Legislation enacted in May 2012 (S.B. 214 / Act 170) increased the Standard Offer Program to 127.5 MW. Starting April 1, 2013, there will be annual increases to the program cap, until the 127.50 MW cumulative capacity is reached. The schedule for annual increases is as follows, and may be adjusted to account for greenhouse gas reduction credits, as provided for in the law:

  • April 1, 2013: 55 MW
  • April 1, 2014: 60 MW
  • April 1, 2015: 65 MW
  • April 1, 2016: 72.5 MW
  • April 1, 2017: 80 MW
  • April 1, 2018: 87.5 MW
  • April 1, 2019: 97.5 MW
  • April 1, 2020: 107.5 MW
  • April 1, 2021: 117.5 MW
  • April 1, 2022: 127.5 MW

 


 
Contact:
 
VEPP, Inc.
P.O. Box 1938
Manchester Center, VT 05255
Phone: (802) 362-0748
E-Mail: jspencer@veppi.org
Web Site: http://vermontspeed.com
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.