Context. Among optical stellar interferometers, the CHARA Array located at Mt Wilson in California offers the potential of very long baselines (up to 330 m) and the prospect of coupling multiple beam combiners. This paper presents the principle and the measured performance of VEGA, Visible spEctroGraph and polArimeter installed in September 2007 at the coherent focus of the array. Aims. With 0.3 ms of arc of spatial resolution and up to $30 000$ of spectral resolution, VEGA intends to measure fundamental parameters of stars, to study stellar activities and to image and analyze circumstellar environments. We describe the observing modes that have been implemented for this spectro-polarimeter and show actual performances measured on the sky during the first observing runs. Methods. The astrophysical programs are described in relation to the observing modes of the instrument, the presentation of the spectrograph and of the interface table is shown and finally the data is presented. We discuss the perspectives of further development in the framework of the CHARA Array. Results. We show that VEGA/CHARA is fully operational. The current limiting magnitude is nearly 7 but the results depend on the observing conditions (seeing, spectral resolution, etc.). We have validated the stability of the instrumental visibility at the level of 1 to 2% over half an hour and of the instrumental polarization for various declinations. Some examples of squared visibility and differential visibility are presented. Conclusions. The spectro-polarimeter VEGA has been installed and successfully tested on CHARA. It will permit stellar physics studies at unprecedented spectral and spatial resolutions.