Vermont is on a mission to promote renewable energy, more so than just about any other state in the country. With a target of producing 20 percent of its energy from renewables by 2017, and 75 percent by 2032, Vermont is pursuing a greener future more aggressively than every state save for Hawaii. If you find yourself considering a solar energy installation. It’s important to understand the various programs, rebates and incentives that will significantly affect your cost to go solar in VT.
The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand.
Solar tax breaks in Vermont
If you aspire to be a solar-powered homeowner, this is great news for you. In order to achieve these targets, Vermont has a few solar incentives to help you go solar.
Finally, Vermont residents who invest in solar energy will not have to pay any additional taxes on their system. The Renewable Energy Systems Sales Tax Exemption frees you from paying any sales tax on the purchase of your system, and the Uniform Capacity Tax and Exemption for Solar keeps you from having to pay increased property taxes.
The solar tax credit and other Vermont solar incentives
Net metering in Vermont
When you put solar panels on your roof, you want to make sure you get credit for all of the power your system generates. Luckily, Vermont has a net metering policy that credits you for the extra electricity your system produces, and allows you to use those credits when your system doesn’t generate enough power. Green Mountain Power offers the top utility net metering program in Vermont.
The federal solar tax credit
Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).