Vermont has been a long-standing advocate for environmental sustainability, and one of the ways we are contributing to a greener future is through solar energy. By going solar, not only do you help the environment, but you also unlock significant financial incentives. Keep reading to discover the various state incentives that make Vermont the perfect place to invest in solar!
Net Metering Program
With Vermont's net metering program, you can enjoy credits on your utility bills for excess energy produced by your solar panels. Bank your energy surplus on sunny days and use it to power your home on cloudy days or at night. This program not only cuts your electricity bill but also promotes a more balanced and efficient use of energy resources.
Take advantage of the federal government's 30% tax credit for both residential and commercial solar installations through 2032, paired with Vermont's additional state tax incentives. While for businesses, there is an additional state tax incentive of 7.2%, and they can also depreciate 85% of any additional costs to install the system over the course of five years.
The 30% tax credit also extends to batteries – which can be a nice compliment to solar, as they allow you to store up excess solar energy for those cloudier, rainier days, and reduce your reliance on the grid.
Overall, these tax incentives significantly offset the initial investment required for renewable energy investments.
Vermont's Standard Offer Program
Vermont’s innovative Standard Offer Program encourages the development of small-scale renewable energy projects, including solar. Through this initiative, Vermont utilities purchase the output of eligible renewable energy projects at predetermined rates for a period of 10 to 25 years. This provides a secure and reliable source of income for solar panel owners, making renewable energy projects financially viable.
At this time, the program’s capacity has been reached and will not be expanded unless new Standard Offer legislation is passed.
Sales Tax Exemption
When you choose to install a solar energy system in Vermont, your purchase will be exempt from state sales tax. This significant savings opportunity helps homeowners and businesses lower the overall cost of transitioning to solar.
Vermont's Renewable Energy Standard
Vermont's Renewable Energy Standard establishes that by 2032 the state aims for 75% of its total energy to come from renewable sources. By committing to renewable energy, Vermont fosters an environment that benefits solar panel owners like you, ensuring a sustained demand for clean energy production.
Renewable Energy Vermont, the state’s clean energy trade association, aims to have Vermont Legislature pass an updated version of the Renewable Energy Standard so that 100% of the state’s electricity will come from renewable sources by 2030.
Vermont's Property Tax Exemption
One of the many advantages of going solar in Vermont is the property tax exemption, which applies to any solar system with a capacity that is less than 50 kW and that is net-metered or off-grid. This means that the increased value that solar panels bring to your property will not affect your property tax calculations. This exemption not only safeguards your investment but also provides an enticing financial incentive to switch to solar.
At Green Mountain Solar, we're here to guide you through the process of transitioning to solar energy in Vermont. Set up a free site-visit with a Solar Advisor to learn more and enjoy the benefits of going solar in Vermont!