Rebates and tax credits
It is a great time to install a solar or wind power system in Vermont because there are many different incentives available at both the state and federal level. Some incentives are in the form of a rebate, some as an income tax credit and some as a payment for the energy your solar power system produces.
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AllEarth Renewables does not provide tax advice or services.* We have provided a basic summary of additional resources available to learn more about renewable energy incentive programs:
- In Vermont, rebate money is available through the Small Scale Renewable Energy Incentive Program. This fund is administered by the Renewable Energy Resource Center, www.rerc-vt.org, and the rebate is paid directly to a certified installer on the customer’s behalf. For solar electric systems this rebate is based upon the installed capacity (or size) of the system and is set at $1.75 per installed watt, capped at 5,000 watts.
- As of October 2008, following the passage of the Troubled Asset Relief Program (TARP) bill, there is an uncapped 30% federal income tax credit for residential solar installations. This credit covers both solar electric and solar thermal systems. The credit can be claimed in the tax year that the system was placed in service. If the owner does not have sufficient tax liability in the first year, the credit can be rolled over to the following tax year. To learn more, visit www.energystar.gov.
- Another form of incentive is a payment based upon the production of the solar energy system. As opposed to the rebate and tax credit, which are “up-front” incentives, a production-based payment continues to pay dividends for the life of the system. Currently the Vermont-based electric utility, Green Mountain Power, offers such a payment through their Solar GMP program. See www.greenmountainpower.com.
*This tax information should only be used as a guide as AllEarth Renewables cannot provide tax advice. Please consult a tax professional to learn how any tax incentives would affect you.