Our mission is to make solar affordable and accessible to all. That means making sure people know about all the discounts and incentives available, so that we can build a brighter future, together.
Here’s what you need to know.
If you go solar by December 31, 2022, you can take advantage of a federal tax credit equal to 26% of what you paid for solar. That incentive decreases to 22% on January 1, 2023, and is scheduled to expire on January 1, 2024.
You’ll get paid for the power you produce. Your utility will ‘net-meter’ the power you send back into the grid, crediting you for kWh your solar panels produce. This adds up to thousands of dollars over the lifetime of your system.
You won’t pay sales or property taxes on your solar in Vermont. Any increase in your home value is exempt from your state property taxes, and your solar system purchase is also exempt from all applicable sales taxes. It really does pay to go solar in Vermont, right?
How to Save with Solar Incentives in Vermont
1. The federal tax credit
The federal tax credit, also called the federal income tax credit or “ITC”, remains at 26% for all systems installed through 2022. While this sizable credit has been a huge help for solar consumers, it is contingent upon a family’s tax liability. Basically, your tax credit 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. Everyone’s tax situation is different, and we’re not tax experts, so we always recommend speaking with your tax professional to see if you’ll be able to benefit from this tax 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. In Vermont, for each kWh of energy sent back to the grid, you’ll get a credit valued at the retail rate of electricity. That adds up to thousands of dollars in credits over the life of the system! Your system essentially pays for itself over time by offsetting your electricity costs.
Beware: This incentive continues to drop. Learn more here.
3. Property and sales tax
Vermont rolled out a 100% property tax exemption for solar systems up to and including 10kW back in 2013. Since this exemption may not include municipal property taxes, localities can exempt you from some or all of the property taxes associated with the increase in home value from installing solar. As with all tax-related issues, we recommend you connect with an expert to fill you in on all the details of your town and whether or not it has an exemption. A state sales tax exemption on solar means you’ll also save on your upfront costs when you go solar in Vermont.
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. Get in touch with one of our Solar Experts today: