Vermont's Rebates and Incentives for Solar Energy Systems

Vermont is right in the heart of New England. It is the home of Democratic leader Howard Dean and boasts some of the most beautiful landscape in the United States. And yet, despite an inherent love of natural beauty, Vermont has made little progress in supporting solar energy. In fact, their Congress' last attempt at a renewable energy bill, which would have set a renewable energy standard of 25% by 2025, was vetoed by Governor Jim Douglas. Nevertheless, it is not an empty bowl for homeowners wishing to enlist in the solar energy movement. Here is what Vermont does have to offer:

Sales Tax Exemption

• This exemption used to apply only to net metered systems, but now is available to solar hot water, solar thermal electric, and Photovoltaic (PV) systems up to 250kW. Eligible systems are excluded from Vermont's six percent sales tax.

Solar and Small Wind Incentive Program

• In spite of Vermont's failure to pass any new renewable legislation, the state has continued funding of its state rebate program. Passed in 1999, the program offers rebates for customers using solar water heat and PV systems.
• Incentive rates are as follows:
  • Solar Water Heat - $1.75 per 100 Btu/Day for individuals and businesses
  • $3.50 per 100 Btu/Day for multi-family and low-income residents
  • Photovoltaics - $1.75/Watt DC for individuals and businesses
  • $3.50/Watt DC for multi-family and low-income residents
• Maximum incentives are $8,750 for both PV and hot water systems. However, for low-income residents, the maximum is $35,000 or 50% of the cost.
• Installers must be Vermont Solar and Wind Partners. For more info on system requirements and necessary forms, see this website.

Clean Energy Development Fund Loan Program

• Just in case you need a loan to get started, Vermont has a state-funded loan program for homeowners and organizations looking to go solar. Maximum loan amount is $250,000 and carries a 4% interest rate (although terms will vary based on project type). For information visit the CEDF.

Net Metering

• Vermont's net metering regulations are fairly standard. Systems up to 250 kW are eligible until 2% of the utility's previous year's peak demand is reached. Excess generation is granted on the customer's next utility bill and then granted to the utility at the end of the annual billing cycle.
• Note: Vermont's net metering rules were amended in the early part of 2008. Some of the statistics above may be on hold until the Vermont Public Service Board updates its rules. Get more info from the Department of Public Service.

Vermont can certainly do more to promote solar energy. The basics are there but interconnection standards and a statewide property tax exemption would really help. There is a local option exemption that gives municipalities the choice. Also, there is no current renewable portfolio standard for Vermont. This is the biggest step that a state can take. It gives utilities a push in the right direction. Let's hope a state as progressive as Vermont gets on board soon.

USEFUL LINKS

• Renewable Energy Vermont
• Department of Public Service
• DSIRE: Vermont
• Vermont Solar Contractors
  
• Green Mountain Power
• Renewable Energy Resource Center