2019 Commercial Solar Incentives in Vermont
Commercial solar systems can draw on four sources for savings: the federal tax credit, the state tax credit, federal accelerated depreciation, and the state net metering incentive. So many options for discounts can translate to recouping nearly half of the cost of your system in your first year, and more in the following years.
The pie chart considers your purchase of a commercial solar system and the percentage of that purchase that you can get back based on the following discounts.
1. Federal tax credit
This 30% investment tax credit works for businesses the same way the income tax credit works for homes (so we won’t repeat ourselves) – with the exception of the phase-out schedule.
Here’s what’s on the horizon:
For systems installed in | Incentive amount |
---|---|
2019 | 30% |
2020 | 26% |
2021 | 22% |
2022 | 10% |
2. Federal accelerated depreciation
The beginning of 2018 brought businesses the benefit of being able to depreciate 100% of their investment in solar. Businesses can elect to write off the full cost of solar in the first year or spread it out over five years.
For example, If you invest $10,000 in a solar array, and your business pays a tax rate of 20%, you can write off $2,000 in tax savings.
3. State tax credit
This incentive, also known as the state income tax credit, is the same concept as the federal tax credit. A few states offer their own tax credits to incentivize solar. Fortunately Vermont does and the 7.2 % credit helps add up the pieces of the pie chart for savings.
4. State net metering incentive
This incentive, explained above, offers solar customers a premium rate – above the utility’s retail rate – for all solar energy produced. Rooftop solar, Solar Canopies, and certain preferred site* projects up to 150 kW in size earn an extra 3¢ per kWh.
*Preferred sites = roofs, parking lots, redevelopment sites like landfills, or other sites designated as “preferred” by a municipality.
Why now is the time to go solar.
Solar incentives are on the decline. Take advantage of them!
The sooner you go solar, the more you save. Tax credits, rebates, and incentives can cover a really significant portion of the cost of going solar.