Solar Incentives and Financing Options
We are dedicated to solar affordability and accessibility.
We work closely with each client 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 9/25
Solar Incentives for Businesses and Tax-Exempt Organizations
The Federal 30% Income Tax Credit (ITC): The ITC is a tax credit equal to 30% of the total cost to install a solar and/or battery system which is owned (not leased) by the purchasing entity. This credit is awarded to the system owner as a tax refund, or a reduction in taxes owed (this is different from a tax deduction). The ITC operates as a credit against tax liability, so a tax liability is necessary in order to take advantage of the credit. Talk to your tax adviser to clarify your projected tax liability for the year in which the installation will be made operational. Your project must be installed and operating (not just paid for) before you can claim the tax credit.
Changes to the ITC were passed into law on July 4th, 2025.
These changes end the ITC for residential installations installed after December 31st of 2025, but they phase out more gradually for commercial, municipal and non-profit projects. In a nutshell, commercial, municipal and non-profit projects must begin construction within 2025 or the first-half of 2026 and expend a minimum of 5% of total project costs prior to July 4th of 2026 to qualify for the ITC. Projects must also be completed within four years from the end of the calendar year in which construction began. Further restrictions are placed on projects which begin construction after July 4th of 2026.
NEW! Direct-Pay Option for NonProfits and Municipalities: The direct-pay portion of the Investment Tax Credit (ITC) allows tax-exempt organizations and government entities to claim a direct payment from the IRS equal to 30% of project costs, increasing to 40% of project costs when minimum thresholds of domestically-produced content are met within the installed product mix. The same rules outlined above (relating to commercial ITC project timelines) apply to these projects as well.
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.
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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