Previously, people who could afford to install solar panels were able to create their own electricity and if they made more than they used -- over the course of a year -- got trued up with a credit from GMP. This is "net metering," and meant that one's power bill was lowered, that month, by the amount one generated. But that meant that while one's power bill might be lower or reduced during the sunny months of the year, it would take a very, very long time to offset the cost of panel installation.
Under this new incentive program customers who install panels and participate in the SolarGMP plan will receive two financial benefits. Here's how it works. Customers will now be paid by GMP for all electricity that they create at a rate of six cents per kilowatt hour over the 12 to 13 cents per hour benefit they get from creating their own electricity (net metering) rather than using GMP's power.
So, generate your own 500 kwh of power each month and save the 12 to 13 cents an hour you would pay, plus receive an additional six cents an hour for creating the power. Create more than you use and receive actual cash payments.
This, finally, makes sense. It recognizes that power created via hundreds of solar panels installed in Central Vermont in the summer costs the utility less than purchasing that power from Hydro-Quebec or Vermont Yankee. It recognizes that the cost of solar panels are cost prohibitive for many people and can't be recouped via net metering alone.
Most importantly, it acknowledges that seeking alternative energy sources, whether solar, wind, hydro or micro-hydro, can be economically viable for consumers and corporations. Kudos to GMP and those who install solar panels.
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