All federal benefits apply to entities in Vermont.

Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.

Vermont offers a 6% sales tax exemption on the purchase of solar systems up to 500 kW. This means you won't pay state sales tax on qualifying solar equipment, reducing the upfront cost of installation. (LINK)

Solar systems under 50 kW that are net-metered or off-grid are exempt from property taxes in Vermont. This means the added value from your solar installation won't increase your property tax assessment. (LINK)

GMP customers can receive up to $10,500 toward the purchase of a new home battery if they enroll in the BYOD program and agree to share excess stored energy with GMP during peak demand times. (LINK)

Vermont has a net metering program that allows homeowners with solar panels to receive bill credits for excess energy sent back to the grid. These credits can offset future electricity bills, and any remaining credits at the end of the year may expire.

Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).

Vermont offers a combination of federal incentives and state-level programs to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits. The federal 30% solar tax credit, sales tax exemption, property tax exemption, and GMP's BYOD program provide financial support and compensation for solar energy production. Additionally, nonprofits can benefit from direct payments equivalent to the federal ITC. These incentives make Vermont an attractive state for solar energy adoption.