Incentives

Solar Incentives

All Soveren solar systems qualify for federal, state and utility incentives. The combined value of these incentives can significantly reduce the net cost of the system, improving the return on investment for solar.

Soveren works with our clients to identify which incentives are available for their installation and, where applicable, Soveren completes the incentive application on our clients’ behalf.

Note: Incentive amounts, particularly at the state level, are subject to change and interruption. Please contact Soveren for the most current incentive levels.

Overview of Residential Solar Incentives

  • Federal –  30% tax credit*
  • Utility –    ~4.3-5.3¢/kWh bonus credit

Overview of Commercial Solar Incentives

  • Federal –  30% tax credit*
  • Federal –  5 year accelerated depreciation
  • State –       7.2% tax credit*
  • Utility –    ~4.3-5.3¢/kWh bonus credit

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, and carried back 1 year

Business Energy Investment Tax Credit

  • 30% of total installed cost (no cap)
  • Effective through 2016
  • Credit can be carried forward for up to 15 years, and carried back 1 year

Modified Accelerated Cost Recovery System (MACRS)

  • Businesses may depreciate  (85%) of the installation cost of MACRS over a 5 years.

State of Vermont Solar Incentives

  • 7.2% of the total system cost

Sales Tax Exemption

  • No sales tax for solar

Utility Solar Incentives

Bonus Credit for Net Metered Solar Systems

  • 4.3-5.3¢/kWh bonus credit (GMP)
  • Valid for 10 years from date of system commissioning
  • All VT utilities (bonus credit varies between utilities)
  • 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 4.3¢/kWh bonus credit. This makes solar production 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 highest utility rate for each utility at the time of the legislations passage in 2011, and 19¢. For 2015 Green Mountain Power’s bonus is between 4.3¢/kWh and 5.3¢/kWh. The bonus credit is fixed at the rate it is when you buy in, and will stay fixed 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.