Vermont

Vermont offers a valuable Property Tax Exemption for solar energy systems, allowing homeowners to install solar without increasing their property taxes. This state tax exemption means that when you add solar panels to your home, the additional value they bring to your property won’t be included in your property tax assessment.

To qualify for this exemption, your solar system must meet specific requirements based on whether it’s grid-connected or off-grid. For off-grid systems, the equipment must be incorporated into a home energy system not connected to the electric distribution grid, and must meet net-metering requirements (typically under 500 kW capacity and primarily offsetting your own electricity needs). The exemption covers all equipment that contributes to making your qualifying system function, including solar panels, racking, inverters, cables, and battery storage.

Vermont’s Sales Tax Exemption offers homeowners a valuable financial benefit when purchasing solar energy systems. Under this state tax incentive, solar equipment purchases are completely exempt from Vermont’s 6% sales tax, providing immediate savings at the time of purchase. For example, on a $20,000 solar system, this exemption would save you $1,200 upfront.

All Vermont residents who purchase solar energy equipment for residential use automatically qualify for this exemption. There are no application deadlines or expiration dates to worry about, as this is an ongoing state program. When purchasing your solar system, the exemption is typically applied automatically by your solar provider at the point of sale, making it a hassle-free way to reduce the upfront cost of going solar.

Vermont’s Net Metering program allows homeowners with solar panels to receive credit on their electric bills for the excess energy they generate and send back to the grid. When your solar system produces more electricity than you’re using, your utility meter runs backward, and you build up credits that can be applied to future bills when your system isn’t generating enough power to meet your needs.

In Vermont, net metering credits are typically valued at the retail rate of electricity, which means you’ll receive the same rate for the energy you produce as what you pay for the energy you consume. These credits can roll over month to month for up to 12 months, helping you offset your electricity costs throughout the year. There are no specific dollar caps on the program, but system size is generally limited to 500 kW, with most residential systems falling well below this limit.

To be eligible for net metering in Vermont, you must be a customer of a Vermont electric utility and have a properly installed renewable energy system, such as solar panels, that meets all applicable safety and performance standards. Before installation, you’ll need to apply for a Certificate of Public Good from the Vermont Public Utility Commission and receive approval from your utility company.

While there are no current deadlines for participating in Vermont’s net metering program, the specific credit rates and program details may change over time as the state reviews and updates its energy policies. It’s worth noting that Vermont utilities are required by law to offer net metering, making this a stable, long-term incentive for homeowners considering solar.