Vermont is the first U.S. state to establish a full system of renewable energy feed-in tariffs. Legislation went into effect at the end of business on May 27, 2009.
H. 446 creates tariff rates for renewable energy based on the cost of generation, plus a reasonable profit. Costs will be covered by ratepayers.
The program is capped relatively low, at 50 megawatts (MW). And individual projects are capped at 2.2 MW. But the tariff levels are generous--differentiated by technology and size.
The legislation also creates a specific tariff for small wind turbines of less than 15 kW capacity. That tariff mandates payments of $0.20/kWh to owners of grid-connected small wind turbines.
Other tariff levels include:
- $0.14/kWh for wind tubines larger than 15 kW
- $0.12/kWh for landfill and biogas
- $0.30/kWh for solar
Republican Governor James Douglas allowed the bill to become law without his signature, as is allowable by Vermont law.
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