Utility regulators in Vermont have denied an application for a small solar project in Derby.

Derby GLC Solar developers wanted to build a 500-kilowatt net-metered solar system in a sand and gravel pit on Route 5 in Derby.

The Vermont Public Utilities Commission cited constraints on the region's electrical grid and the impact on existing projects as reasons for the denial.

The three-member commission made the relatively small solar project a test case for adding more renewable energy projects in this area.