State-Sponsored Incentives for Residential Solar
A number of state governments provide incentives, like rebates and tax credits, to invdividuals and businesses who go solar. In some cases, these programs can signifcantly reduce the up-front costs associated with purchasing a solar energy system. Below, you'll find information on the programs available in Vermont. Also, don't forget about the 30-percent tax credit and accelerated depreciation rules available from the federal government.
For a complete listing of solar energy professionals in your area, visit our Vermont Solar Directory.
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In March 2008, Vermont lawmakers amended the state’s renewable portfolio goals. As it currently stands, the RPS outlines three goals: (1) to meet the total increase in retail electricity demand between 2005 and 2012 with renewable energy; (2) to, by 2017, renewables make up at least 20% of statewide electricity sales; and (3) to have 25% of all energy consumed within the state be sourced by renewable sources. Note that, as opposed to renewable portfolio standard (RPS), a goal is not legally binding.
As outlined by the Vermont Department of Public Service, Vermont’s net-metering rules apply to all utilities operating in the state. Generally, all customers with electricity-generation systems up to 250 kW are entitled to receive credit for any net excess generation (NEG). Credit is applied at the utility’s retail rate on the customer’s subsequent monthly bill. Note that, after the first 12-month billing cycle, the utility is no longer required to offer net metering and any NEG thereafter is granted to the utility without compensation. Note, too, that enrollment is capped at 2% of a utility’s 2006 peak demand.
Vermont offers a number of rebate programs, though only one extends benefits to solar power systems. The Vermont Small-Scale Renewable Energy Incentive Program offers individual residents up to $15,000 for PV systems and $3,000 for solar hot water systems. More specifically, the rebate covers $1.50 per watt of DC power for PV. Residential solar water heaters receive $1.50/100 British thermal unit/day (Btu/d) up to 200 kBtu/d.
For businesses, PV panels earn a rebate of $1.50 per watt DC for the first 10 kW and then $1.00/watt for the next 50 watts up to a total of 60 watts for the whole system. Commercial solar hot water systems earn $1.50/100 Btu/d up to 1000 kBtu/d with a maximum incentive of $15,000.
Beyond this initiative, the state does sponsor a number of other rebate programs for energy efficiency, green building and other relevant technologies. For more info, please visit the Database of State Incentives for Renewables & Efficiency (DSIRE) website.
In 2008, Vermont lawmakers passed House Bill 343, which enacted, among other things, a business income tax credit for businesses that install solar systems. The credit amounts to 30% for systems placed in service before September, 2011. Vermont also allows municipalities to offer their residents a property tax exemption for the installation of renewable-energy systems. Finally, Vermont has since 1999 offered a sales tax exemption for renewable-energy systems, which generally applies to systems up to 250 kW in size.
Last Updated: 7/2/10 Vermont: Residential Solar Incentives |
