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Passed in early 1998, Vermont's net metering law is interesting in that it established a new class of electric generation qualifying for net metering called the farm system. A farm system generates energy from the anaerobic digestion of agricultural products or byproducts, solar-electric (PV) systems, wind systems or fuel cells may net meter systems up to 150 kW (non-farm generators must be less than 15kW to qualify for net metering). Utilities are not required to compensate customers for net electric generation (NEG).
To start net metering, a customer must obtaining a "Certificate of Public Good" from the Vermont Public Service Board (PSB). A utility shall make net metering available to any customer using a net metering system or farm system on a first-come, first-served basis until the cumulative generating capacity of net metering systems equals 1.0 percent of the distribution company's peak demand during 1996 or the peak demand during the most recent full calendar year, whichever is less
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