Vermont is a great state for solar, and many solar incentives in Vermont only make it better. What are they and how can you get them? Read our article.
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
Net metering stands for selling your excess solar energy into the commercial grid, gaining credits from the utility and using them to cover your next electric bill.
Vermont has a complicated and diverse net metering program. To participate in it, solar owners must first obtain a Certificate of Public Good. You can apply and register for net metering at the Public Utility Commission website. The capacity limit for solar systems is 500kW. Net excess generation (NEG) is credited at a blended residential rate and carried over to the customer’s next bill. If any credits that you earn aren’t used in 12 months, they are granted to the utility.
For solar owners that obtained a Certificate of Public Good after January 1, 2017, special credit adjusters come into effect that depend on the size and siting of a solar system. For example, homeowners with systems of 15kW or less in capacity receive a 1 cent/kWh adjuster.
In Vermont, group net metering is allowed. The group must discuss their initiative with the Public Service Board and provide such information as involved customers and meters, contact information and a dispute resolution process. Each member is going to be billed individually. NEG is credited at a blended residential rate and allocated to group members.
For generating clean energy, solar owners receive Renewable Energy Certificates (RECs) — one REC for 1 Megawatt-hour of produced electricity. In Vermont, utilities retain these RECs unless the customer expresses his desire to keep them. If you give up RECs to the utility, you receive a bonus rate, and If you keep the RECs to yourself, there is a negative credit adjustor. Currently, in Vermont there is no system for trading SRECs like in other states, so the question of whether or not you should keep them is not that simple.
Solar systems in Vermont under 50kW that are net-metered or off-grid and only provide energy to the property where they are located are exempt from property taxes. Systems that are grid-tie, but aren’t net metered are taxated, as well as off-grid installations that provide power for remote property. However, Vermont allows municipalities to exempt even these solar systems from property taxes, so you can inquire of your local authorities if they have decided to do so.
What is more, there is a uniform tax of $4.00 per kilowatt instead of the statewide education property tax for systems that are 50 kW or greater in size. Don’t forget that while a small solar system doesn’t raise your property taxes, it does increase the value of your house on the property market.
4%
this is how much solar panels increase the value of your house
Vermont solar laws exempt grid-tie and off-grid systems from sales state taxes. Systems that are 500kW or smaller are eligible for that exemption. The sales tax rate in Vermont is 6% so this incentive makes PV systems in Vermont more accessible for everyone.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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