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 before January 1, 2021, you can take advantage of a federal tax credit equal to 26% of what you paid for solar . Next year, that incentive decreases to 22%. The incentive expires January 1, 2022
You’ll get paid for the power you produce. Your utility will ‘net-meter’ the power you send back into the grid, paying you 2 cents for every kWh your solar panels produce. This adds up to thousands of dollars over the lifetime of your system.
How to Save with Solar Incentives in Vermont
1. The federal tax credit
The federal tax credit, also called the federal income tax credit, remains at 26% for all systems installed in 2020. 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.
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 2 cents – often called the solar adder.
Adding 2 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 dropped from an extra 3¢ per kWh down to 2¢ on July 1, 2019. Fast forward a year and it may drop down to 1¢ per kWh.