The base is the blended residential rate, calculated by each utility and reviewed biennially. In the 2026 update the Department recommended a statewide blended residential rate of $0.2071 per kWh, an increase of $0.0231 per kWh.
The REC adjustor modifies that based on what happens to your Renewable Energy Credits. Keeping them is minus 3 cents per kWh as of 2026.
The siting adjustor modifies it based on where and how the system is sited, with the Commission favouring preferred sites.
Add those together and you have your compensation rate. Because it is arithmetic rather than a quoted figure, you can verify it.
Checking each part of the sum
Ask which blended residential rate the projection used, from which utility and which tariff filing. The 2026 tariffs were directed to take effect August 1, 2026, so a figure from an earlier filing may be out of date.
Ask which REC treatment was assumed and confirm it is the one you want, since the difference is three cents per kilowatt hour.
Ask which siting category the installation falls into and what adjustor value that carries, stated as its own number.
Then add them yourself and check the total against the compensation rate the projection used. That takes a minute and it validates the largest input in the model.
And what it means against what you pay
A blended residential rate around 20.7 cents per kWh is well above the national average electricity price, which is what makes Vermont solar work despite a northern climate and an installed cost around $3.10 per watt.
Because compensation is built from that rate rather than from an avoided cost figure, Vermont remains comparatively favourable by 2026 standards, when many states have moved to wholesale-style export rates.
That also means sizing here is less punishing than in Georgia, Indiana or Louisiana. The design can reasonably follow annual consumption rather than chasing daytime load.
Ask what percentage of your annual usage the proposed system covers, and ask what happens to compensation on generation beyond that under your utility tariff.
What belongs in a Vermont projection
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase in Colchester receives no federal tax credit.
Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.
What exists is compensation built from three published components, each of which you can check independently.
Ask for all three shown separately with the tariff date stated, then verify the total yourself before comparing quotes.