Rebates and incentives, Vermont
An automatic property tax exemption, a full sales tax exemption, and net metering credited close to retail. No state income tax credit, whatever one outlier guide claims. See your numbers.
How it works
Step 1
Every Vermont solar installation requires this from the Public Utility Commission before you connect to the grid. Your installer typically handles this application as part of the project.
Step 2
The Vermont PUC has signaled potential future reforms to net metering, and your Category I rate locks in for 10 years from your interconnection date once you're connected. Check the sales tax exemption savings calculator while you're finalizing your budget.
Step 3
Vermont has no state solar income tax credit, despite at least one source describing a 30% figure that doesn't match the rest of the research. Use the property tax exemption savings calculator to confirm what the automatic exemption is actually worth to you instead.
Under 32 V.S.A. Section 3802(17), any renewable energy plant generating electricity from solar power with a capacity under 50 kW, a threshold that covers virtually every residential system, is exempt from municipal property tax on the value it adds to your home. Reading the statute directly confirms this exemption applies without the need for a vote of the town or municipality, which settles a point of confusion across some guides: Vermont separately allows municipalities to vote on an additional local-option exemption for other renewable energy property, and a few sources describe this local-option program in a way that could be misread as applying to the primary residential exemption too. It does not. The under-50kW exemption is automatic and statewide; the local-option vote is a separate, additional layer that doesn't gate the main residential benefit. On a typical 10 kW system adding roughly $20,000 in assessed value, this exemption is commonly estimated to save around $400 per year at Vermont's average property tax rate, though your specific local rate will determine the exact figure.
Vermont exempts solar energy equipment, including panels, inverters, racking, and batteries, from the state's 6% sales tax, applied automatically at the point of sale with no separate application. On a typical residential system, this commonly works out to somewhere in the range of $1,300 to $1,800 in upfront savings depending on total project cost. Run your own numbers with the sales tax exemption savings calculator to see the upfront difference it makes.
Residential systems 15 kW or smaller, classified as Category I, earn net metering credits at a base rate reported around 18.39 cents per kWh, plus a small per-kWh credit adjuster, and this rate locks in for 10 years from your interconnection date. This is close to, though sources describe it as not always exactly matching, Green Mountain Power's retail rate, which various guides put somewhere between about 19 and 24 cents per kWh depending on the year and source. Credits carry forward for up to 12 months, which is a meaningful design choice given how much Vermont's solar production swings between summer and winter. Every installation requires a Certificate of Public Good from the Vermont Public Utility Commission before interconnection, and the PUC has indicated it may revisit net metering policy in the future, which is part of why several sources suggest interconnecting sooner rather than later if locking in current terms matters to your decision. Compare the overall package against a neighboring state with the New Hampshire incentive estimator or the Massachusetts incentive estimator. Before you count on any incentive, check the DSIRE database of state incentives for your state's current programs.
Vermont does not offer a state income tax credit for residential solar. One source describes a 30% state income tax credit, a figure that doesn't match the broader body of research reviewed here and most likely reflects confusion with the federal credit rate, or a straightforward error, so this claim should not be relied on. Green Mountain Power, which serves roughly three-quarters of the state, does not offer a direct solar installation incentive but runs a separate Bring Your Own Device battery program that can pay up to $10,500 for an eligible battery system in exchange for sharing stored energy during periodic peak demand events, with the exact payout depending on how much energy you commit to sharing. Details on the program's exact structure, including specific per-kW upfront figures, vary somewhat across sources, so confirm current terms directly with GMP if a battery is part of your plan.
With your rebate total in hand, the combined loan and rebate timing tool shows the monthly payment on the amount you still need to borrow. If a battery is part of your plan, the savings with battery vs without battery comparison shows the difference it makes.
Questions
Yes, for the main residential case. Under 32 V.S.A. Section 3802(17), any renewable energy plant generating electricity from solar power with a capacity under 50 kW, which covers essentially all residential systems, is exempt from municipal property tax, and the statute explicitly states this exemption applies without the need for a town or municipal vote. Separately, Vermont also allows municipalities to vote on an additional local-option exemption covering other renewable energy property, but that's a layer on top of the automatic under-50kW exemption, not a replacement for it. Don't let a source describing the local-option program make you think the primary residential exemption requires a town vote, since it does not.
No. Vermont does not offer a state income tax credit for residential solar installations. One source describes a 30% state income tax credit, which does not match the broader body of research and is most likely a confusion with the federal credit rate, or an error. With the federal Residential Clean Energy Credit also gone for systems placed in service after December 31, 2025, Vermont's incentive picture rests on the property tax exemption, the sales tax exemption, and net metering.
Residential systems 15 kW or smaller, called Category I, earn credits at a base rate reported around 18.39 cents per kWh, plus a small per-kWh credit adjuster, locked in for 10 years from your interconnection date. This is close to, though not always identical to, Green Mountain Power's retail rate, which has been reported in the 19 to 24 cent range depending on the source and year. Credits carry forward for up to 12 months, which matters given Vermont's seasonal production swings between summer and winter. All installations require a Certificate of Public Good from the Vermont Public Utility Commission before interconnection, and the PUC has signaled potential future reforms to net metering, so locking in your rate sooner rather than later has been suggested as a reasonable consideration.
For GMP customers, potentially yes, if you're comfortable sharing stored energy during peak demand events. GMP's Bring Your Own Device program can pay up to $10,500 for an eligible battery system, with the exact amount depending on how much energy you agree to share and how often, over a program commitment reported at around 10 years in some sources. Figures for the exact structure, including an upfront payment around $850 per kW cited in one source, vary somewhat across guides, so confirm the current program terms and your specific payout directly with Green Mountain Power before finalizing a battery purchase around this incentive.