Vermont

Please contact us for assistance with any of the following information. We are happy to help you understand which incentives are available to you and where to find more information. The information on this page is not tax advice; please seek professional advice from a qualified tax advisor before claiming any tax benefits or exemptions.

Sample Calculations

Here are some estimated costs including equipment and labor along with some potential credits and rebates.  A 5 kW system is about the size that an average New England home would need to replace 100% of their electricity with solar.  The smaller systems can be scaled up at any time if you would like to start with a 2.5 kW or 1.2 kW system.

Estimating costs 5 kW:

5 kW system installed cost: $27,900
Federal Tax Credit: -$8,370
State Incentive Rebate: -$7,500
Total out of pocket cost: $12,030

Estimating costs 2.5 kW:

2.5 kW system installed cost: $15,400
Federal Tax Credit: -$4,620
State Incentive Rebate: -$3,750
Total out of pocket cost: $7,030

Estimating costs 1.2 kW:

1.2 kW system installed cost: $7,700
Federal Tax Credit: -$2,310
State Incentive Rebate: -$1,800
Total out of pocket cost: $3,590

Estimating costs for solar hot water:

56 kBTU Solar Hot Water installed cost: $8,800
Federal Tax Credit: -$2,640
State Incentive Rebate: -$840
Total out of pocket cost: $5,320

Financing Your Project

Federal Investment Tax Credit (ITC)

Tax credits are available at 30% of the cost of the solar energy system, with no upper limit through 2016 (for existing homes & new construction).
Energy Star explains Residential Federal Tax Credits.

State Rebates

The state rebate is set at $1.50 per Watt for PV up to 10 kW, and $1.50 per 100 BTU/day for solar hot water systems up to 200 kBTU/day.  The combined lifetime incentive per customer for all small renewables is $25,000.  Vermont gives a 100% sales tax exemption for the purchase of a renewable energy system smaller than 250kW.  This program is administered by the Renewable Energy Resource Center (RERC).

The DSIRE website will give you access to Vermont state solar energy incentives as well as the state’s rules, regulations, and policies related to renewable energy.

Utility Incentives

Green Mountain Power is offering an incentive of $.06/kWh produced for all net-metered solar electric systems. This is on top of your net-metering credit (usually about $.13/kWh). This utility will also reimburse you up to $300 for metering expenses.

Other Possibilities

Clean Energy Assessment Districts (CEAD)

Check with your local municipality to determine if this incentive is available in your area. This incentive allows property owners to pay for a renewable energy system over a period of up to 20 years through a special assessment charged as a new line item on their property tax bills and paid to the municipality.  Feel free to contact us for information on how to develop a CEAD.

Clean Energy Development Fund (CEDF)

Loans

This state fund offers loans of $50,000 up to $500,000 or 90% of the total project cost for grid-tied projects over 15kW only. Loan application deadlines are quarterly: January 1, April 1, July 1, and October 1.

USDA Grants and Loans

All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible for these grants and loans.

REAP Grants

These grants for renewable energy systems range from $2,500 up to $500,000 or 25% of the total project cost.

REAP Feasibility Grants

These grants cover energy audits and feasibility studies for renewable energy systems and can be as much as $50,000 or 25% of the total cost.

REAP Loans

Loans range from $5,000 up to $25 million or 75% of the total project cost.

Other Resources