Solar Incentives and Financing Options
We are dedicated to solar affordability and accessibility.
We work closely with each homeowner to navigate affordability and financing. We’ll guide you through the process to ensure your financing moves quickly and smoothly. We recommend talking with your tax adviser and seeing how you or your business can benefit from these available incentives. Read below for an overview of current programs.
Note: the financing landscape changes often. This page was last updated with current information on 9/24
Solar Incentives for Businesses and Tax-Exempt Organizations
The Federal 30% Income Tax Credit (ITC): The ITC is a direct tax credit of 30% of the cost to install a solar and or battery system, awarded to the system owner as a refund in a dollar for dollar amount (this is different than a deduction). It operates as a credit against your tax liability, so a tax liability is necessary to have in order to take advantage of this. Talk to your tax adviser to clarify whether you will have tax liability in order to take advantage of this incentive.
NEW! Direct-Pay Option for NonProfits and Municipalities: Because the ITC is a tax credit only individuals and for-profits that paid taxes could take advantage of this huge financial benefit. The direct pay option is a game-changer for tax-exempt organizations and government entities. Where these entities could only take advantage of the federal tax incentives indirectly through a PPA with a tax-paying entity, they may now apply directly for a cash payment for the Investment Tax Credit (ITC)/Production Tax Credit(PTC). This unlocks the benefits of solar for thousands of potential new customers and communities.
Depreciation for a Business going solar: IF you are a business owning the system, in addition to the 30% tax credit, the total cost of the solar systems also can qualify for a depreciation on 85% of the cost of the solar system, taking up to 50% in year one.
Vermont State Investment Business Tax Credit: In addition to the federal tax credit, Vermont Businesses are eligible for a 7.2% State Investment Tax Credit awarded of the total solar system cost. Unused tax credit can be carried forward for up to five years.
For Profit Business Incentives:
Bundled up, the combination of the 30% federal tax credit, depreciation, and 7.2% state tax credit can make a quick and solid ROI!
Solar Incentives for Residential
$0 Down EastRise Credit Union Green Loans
$0 Down Solar Loans are a simple solution to the upfront cost of a solar installation. You will pay a low monthly fee for 7 or 12 years, that assumes the price of the installation after the 30% Federal ITC tax credit. This is typically the lowest monthly payment option available to customers. Green Loans are made possible through our trusted Vermont State Employees Credit Union, now called EastRise Credit Union. We will provide estimates for these loans on your proposal, and advise you to talk to a representative today to learn more. Please visit our EastRise website for more information.
Net Metering
We are fortunate that our utilities in Vermont offer net-metering (not all states do). When you get a solar installation in Vermont, your utility will install a second meter called a gross solar meter. This meter will count the total kilowatt-hours of solar your system produces. If the amount exceeds the total amount you used that month, your utility company will pay you in the form of credits on your electric bill for that excess amount. Vermont’s summer months will generate far more power than in the winter. With net metering, you can cover your winter bills with credits allocated to this credit bank. With net metering, you will get paid for your excess power AND your excess power will be fed back into the grid providing more clean, local energy for the people living in your community.
The Federal ITC Incentive
The Federal 30% Solar Income Tax Credit (ITC) effective now and extended through 2032: The Federal ITC Tax Credit allows you to deduct 30% of your solar installation cost from your federal taxes. This robust tax credit is like taking 30% off of the cost of your installation. Further, if the amount of the 30% tax credit is more than your tax liability for the year, the extra amount of the credit can be carried forward to the following years’ taxes. At 30% through 2022, the tax credit saves homeowners thousands on their systems. We highly recommend talking to your tax adviser to see how this applies to you. It operates as a credit against your tax liability, so a tax liability is necessary to have in order to take advantage of this.
Expanded Battery Storage Tax Credit: Previous to the Inflation Reduction Act, the ITC was only applicable to energy storage systems connected to solar. The IRA removed this stipulation so now stand-alone storage systems will also be eligible for a 30% tax credit. .
Direct-Pay Option for NonProfits and Municipalities: Because the ITC is a tax credit only individuals and for-profits that paid taxes could take advantage of this huge financial benefit. The IRA now provides an option for nonprofit organizations to receive a direct payment instead of a tax credit. This is a game changer for nonprofits!
Please note: If you have specific questions about your tax situation and how to take advantage of the ITC, we recommend getting in touch with a tax professional.
Vermont Net Metering Rate Adjustment
The PUC issued a 42-page order in its biennial review of Net Metering (Case No. 20-0097-INV). Click here to read the order.
New Hampshire State Incentives
New Hampshire Has Two Forms of Incentives for Solar Installations.
First is the Residential Renewable Electrical Generation Rebate Program which offers a rebate of $.20 per watt off your installation, up to $1000 or 30% the total cost, whichever is less. In most cases, this means $1000 off your installation. This program is easy to apply for and we will support you with the paperwork. There is a set amount of money given to this program each year, and the money is offered on a first come first serve basis, so may not be available when you apply.
Second are Renewable Energy Credits or RECs. For every 1000 kilowatt hours produced, you will receive 1 REC. RECs can be sold to companies legally obligated to buy a certain amount of RECs a year to offset their carbon emissions. The market value of RECs change over time, though right now are work about $30 each.
A Solar Powered Home Has Lasting Value And Long-Term Benefits.
A home improvement with cash savings: Every homeowner has a growing list of home improvements and it is a challenge to prioritize these projects. If you have a good solar site, going solar is the perfect project to check off -- unlike an upgraded countertop, it will pay you back with cash savings every month by reducing your electric bill. Improve your cash flow while reducing your use of fossil fuels.
Increase your home’s value without raising your property taxes: A good quality solar system will increase your home’s value. Vermont’s property tax exemption incentive makes sure the added value will not increase your property tax bill. Many home improvements have long-term tax consequences, but not solar!
Rise up to draw down on your carbon usage by shifting to a clean energy source: Solar is the cleanest energy source. Help Vermont go 90 percent renewable by 2050 and lighten your CO2 impact.
“Simon, Victoria, and the whole installation crew were an absolute pleasure to work with every step of the way.
From quoting the project, to helping us understand available grants and incentives, to submitting the regulatory paperwork to the Public Utility Commission and teaming up with Green Mountain Power to prepare the site, to finally installing it these last couple of weeks — I mean, they just couldn’t have been a more friendly and helpful and easy-going and all-around inspiring group of people to work with.
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