2019 Solar Incentives in Vermont
Incentives are dropping dramatically over the coming months and years. Now is the time to go solar.
Solar incentives are always changing. We keep track of the latest in solar policy — that’s our job — and we’ll help you access the best discounts possible.
At SunCommon, our mission is to tear down the barriers to clean energy. And sometimes that means demystifying the complexities of solar. Here, we’ll walk through the available solar incentives so you can understand them and see when they’re scheduled to phase out.
What incentives are available for home solar?
Savings on solar for your home comes from two sources: the federal tax credit and the state net metering incentive.
The pie chart shows your purchase of a home solar system as a whole – and how much you can recoup on that purchase from the federal and state incentives.
1. The federal tax credit
The federal tax credit, also called the federal income tax credit, remains at 30% for all systems installed in 2019. When this big refund check shows up, in your mailbox or direct deposit, it’s happy-dance time.
While this sizable credit has been a huge help for solar consumers, it is contingent upon a family’s tax liability. Basically, your tax refund is limited to what you pay in taxes over the course of a given year. The good news is, you may be able to use the credit over multiple years. We recommend speaking with your tax professional to see if you’ll be able to benefit from this tax credit.
The current phase-out schedule of the federal tax credit is:
|For systems installed in||Incentive amount|
|2022||0% – no more credit|
2. The state net metering incentive
The state net metering incentive for home solar is based on a law requiring public utilities to fairly credit solar customers for the energy that they add to the grid. For the first 10 years of a new solar system’s life, all the power it generates is credited at a premium rate. An extra 3 cents – often called the solar adder.
Adding 3 cents per kWh above the retail rate seems small, but home solar systems generate thousands of those kWh each year. That adds up to thousands of dollars in extra credits over the ten years.
Beware: This incentive just dropped from an extra 4¢ per kWh down to 3¢ on July 1, 2018. Fast forward a year and it will drop down to 2¢ per kWh.
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.