Now is the excellent time to go solar in Vermont State! Considering the ranking of how much each state pays for electricity, Vermont ranks fifth (5th) highest in the country for both residential and commercial. This alone makes the state a bright place to go solar.
Moreover, Green Mountain State provides several Vermont solar incentives and rebates to reduce the expenses in the procurement of solar panels, thus, making it a viable choice for property owners to invest in a solar energy system.
Vermont set a steep goal of 55% renewable energy last 2017 at 55%, which increases by 4% every three years until 75% is achieved by 2032, one of the highest percentages of any state's Renewable Portfolio Standards (RPS). These standards set a goal for how much of a state's total energy needs must be met by renewable sources. Utility companies will have to pay high fees if the standards are met. So, rather than paying the fees, utilities in strong RPS states provide solar incentives for property owners to invest in solar panels.
Net metering law in Vermont is excellent and can benefit the state's property owners. Net metering is a program that enables solar panels or other renewable energy systems to be connected to the utility grid, allowing customers to earn credits that offset the cost of their electricity usage. Customers can receive a credit on their electric bill by selling back excess electricity generated by their system to the grid.
Vermont interconnection standards are decent and state-wide. Interconnection standards ensure solar and other electrical generation systems can connect to the grid seamlessly, like plugging in a device. They streamline the installation process and reduce costs, increasing net metering reliability.
Fortunately, Vermont offers Performance-Based Incentives (PBIs), which are Ohio solar incentives based on the actual power your system generates. Vermont calls them Solar Power Performance Payments. Property owners are paid based on the kilowatt-hours (kWh) or BTUs their system produces when generating renewable energy. This electricity is called Solar Renewable Energy Credits (SRECs), which can vary in value based on supply and demand. SRECs are a beneficial way to help offset the cost of the system.
Pay no sales tax on the cost of an installed solar power system in Vermont! In Green Mountain State, property owners do not need to pay sales tax to purchase a solar energy system. Investing in solar panels will grant a property owner a 6% outright savings. Now that's the solar incentives worth the investment!
In Vermont, the value of your home will not be reassessed after adding a solar system. Before adding the system, you pay property tax based on the value. That's great because it's estimated that in Vermont, a 5kW system increases your home's value by close to $17,000.
Eligible property owners may qualify for a 30% tax credit versus the system cost.
If you are a clientele of Green Mountain Power, you can acquire solar incentives of up to $10,500 in procuring a new home battery once you join the GMP's BYOD program. BYOD program is intended to collaborate with GMP's clientele to decrease expenses during high energy usage.
Beyond these excellent Vermont solar incentives, exemptions, and rebates for you living in Vermont, you also qualify for the excellent tax credit from the Federal government. The Federal Investment Tax Credit (ITC) amounts to 26% of the solar energy system's cost and is subtracted from the taxpayer's Federal income tax. However, only those who buy their solar system by cash or loan are eligible for this credit, not those who lease. All solar incentives go to the third-party owner if you lease a system. That's a great reason to buy rather than lease.
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