Solar Incentives
All Soveren solar systems qualify for federal, state and utility incentives. The combined value of these incentives can reduce the net cost of an installation to nearly half of the installed cost.
Soveren works with clients to identify which incentives are available for their installation and, where applicable, Soveren completes the incentive application on our clients’ behalf.
Overview of Residential Solar Incentives
- Federal – 30% tax credit*
- State – 65¢ per Watt (up to 10kW)
- Utility – 6¢/kWh premium
Overview of Commercial Solar Incentives
- Federal – 30% tax credit*
- Federal – 5 year accelerated depreciation + 50% in year one*
- State – 60¢/Watt (up to 60kW)
- State – 7.2% tax credit*
- Utility – 6¢/kWh premium
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.
*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 if not completely used in first year
Business Energy Investment Tax Credit
- 30% of total installed cost (no cap)
- Effective through 2016
Modified Accelerated Cost Recovery System (MACRS) + Bonus Depreciation
- Businesses my 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.
State of Vermont Solar Incentives
- 65¢/Watt (up to 10kW) for residences
- $6,500 max residential incentive
- 60¢/Watt (up to 60kW) for businesses
- $36,000 max commercial incentive
- Rebate check issued ~60 days after installation is completed and the final incentive application is received
- 7.2% of the total system cost
- No sales tax for solar
Utility Solar Incentives
Bonus Credit for Net Metered Solar Systems
- ~6¢ per kWh bonus credit
- Valid until 2022
- All VT utilities (GMP + CVPS)
- Enacted in 2011 by the Vermont Legislature in House Bill 56
This exciting new 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 ~6¢ per 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 standard utility rate in 2011 and 20¢. For Green Mountain Power customers with a 2011 residential rate of 14.2¢/kWh the credit is equal to 5.8¢. For CVPS customers with a residential rate of 13.9¢ the bonus credit is equal to 6.1¢. The bonus rate is fixed at this rate 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.