Incentives

Vermont State incentives

For a complete listing of all the incentives, rules and regulations for the State of Vermont, please visit the DSIRE Database of State Incentives for Renewable and Efficiency.

There are links at the bottom of this page to download the incentive reservation forms from RERC-VT. You should submit the form as soon as you are committed to installing a system. Incentives are reserved on a first-come first-served basis. For more information on eligibility, please see the SSREIP Terms, Conditions, and Requirement found here.

Overview of Residential Solar PV Incentives

• Federal –  30% tax credit*
• Utility –    ~4.3-5.3¢/kWh bonus credit

Overview of Commercial Solar PV Incentives

• Federal –  30% tax credit*
• Federal –  5 year accelerated depreciation with 50% in year one*
• State –       7.2% tax credit*
• Utility –    ~4.3-5.3¢/kWh bonus credit

*Please seek professional advice from a qualified tax advisor regarding your eligibility for federal and state tax credits and exemptions.

Federal Solar Incentives

Residential Renewable Energy Tax Credit

• 30% of total installed cost (no cap)
• Effective through 2016
• Credit can be carried forward for up to 15 years, and carried back 1 year

Business Energy Investment Tax Credit

• 30% of total installed cost (no cap)
• Effective through 2016
• Credit can be carried forward for up to 15 years, and carried back 1 year

Modified Accelerated Cost Recovery System (MACRS) + Bonus Depreciation

• Businesses may depreciate 50% of the adjusted  basis (85%) of the installation cost in the first year the system is placed in service, and the remaining 50% can be depreciated over a 5 year accelerated depreciation schedule.
• Businesses with gross revenue of less than $1 million may qualify  for 100% depreciation in the first year.

State of Vermont Solar Incentives

Sales Tax Exemption

• No sales tax for solar

Utility Solar Incentives

Bonus Credit for Net Metered Solar Systems

• 4.3-5.3¢/kWh bonus credit (GMP)
• Valid for 10 years from date of system commissioning
• All VT utilities (bonus credit varies between utilities)
• Enacted in 2011 by the Vermont Legislature in House Bill 56

This exciting bonus credit means that each kWh of electricity generated by your net metered solar system will not only cancel out the cost of a kWh of utility electricity, but also earn you an additional 4.3 to 5.3¢/kWh bonus credit. This makes solar even more effective at saving you money on your power bill. It also means your solar system can be sized to produce less power than you consume and still result in a $0.00 electricity bill.

The bonus solar credit is equal to the difference between the highest utility rate for each utility at the time of the legislation’s passage in 2011, and 20¢. For 2015 Green Mountain Power’s bonus is between 4.3¢/kWh and 5.3¢/kWh. The bonus credit is fixed at the rate it is when you buy in, and will stay fixed for the duration of the 10 year period, regardless of  increases in the utility rate.

Learn more about Green Mountain Power’s solar program here.

For incentive info by state, we encourage you to discover this website:  http://www.vpirg.org/cleanenergyguide

 

Incentive Forms –  2015 – All Versions

• SSREIP Terms, Conditions, and Requirements – updated 1/8/2018 for all reservations!

 

 

 

 

 

 

Here is a link to the Net Metering form for a Certificate of Public Good (CPG) from Vermont’s Department of Public Service: