Vermont residential solar energy incentives

Solar Green Mountain Power:

-Customers of Solar Green Mountain Power who own net-metered photovoltaic systems are eligible to receive a bonus payment equal to $0.06 per kilowatt hour generated by the customer owned system.
-Green Mountain Power will reimburse the customer for the expenses of the additional meter up to $300.
-All renewable energy credits generated by the customer owned system will belong to the customer not the utility.

Property tax exemption:

-The total value added to a home by a renewable energy system may be exempt from property taxes.
-Systems and technologies that are eligible for this exemption are solar, wind, biomass, hydroelectric, combined heat and power/cogeneration, fuel cells, renewable fuels and anaerobic digestion.

Clean energy finance districts:

-This is a property tax financing authorization incentive that allows property owners to borrow money to pay for energy efficiency improvements.
-The amount borrowed is paid back through a property tax assessment which is increased for a certain amount of years until all the funds are paid.

Renewable energy systems sales tax exemption:

-In Vermont, renewable energy systems up to 250 kilowatts in capacity are eligible to be 100% sales tax exempted.
-Micro-combined heat and power systems up to 20 kilowatts are tax exempt.
-The exemption is offered for both grid-tied and off-grid systems.

Clean energy development fund grant & loan programs:

-The clean energy development fund has a loan and grant program both designed to promote the development of clean electric-energy technologies by providing funding for purchasing land and buildings, purchasing and installing machinery and equipment, and working capital.
-Loans have a fixed interest rate of 2%. The minimum loan amount is $50,000 and the maximum amount is $1,000,000.
-Grant amounts vary by solicitation.
-Grants are available to four project categories; re-project financial assistance, small-scale systems, large-scale systems and special demonstration projects.
-Eligible clean electric-energy technologies and systems include solar, wind, biomass, fuel cells and combined heat and power.

Efficiency Vermont – home performance with Energy Star:

-This program provides homeowners with financial incentives for energy efficiency projects.
-The rebate amount for qualifying systems is one third of the installed system cost up to $2,500.
-Projects must be pre-approved by Efficiency Vermont before the installation to be eligible.

Vermont small-scale renewable energy incentive program:

-This program provides funding for new solar, wind and micro-hydro energy system installations.
-Systems must be installed by Vermont Solar and Wind Partners to qualify.
-Incentive amounts for residential photovoltaic and solar hot water systems are $1.75 per watt up to $8,750.
-Incentive amounts for residential small wind systems are $2.50 per watt DC up to $12,500.
-Incentive amounts for residential micro-hydro systems are $1.75 per 3 ft-gal/min. up to $8,750.

Net metering:

-Net metering is offered to residents in Vermont who own grid-tied systems up to 250 kilowatts in capacity that generate electricity using eligible renewable energy resources, and to micro-combined heat and power systems up to 20 kW.
-The net excess generation is credited to the customer's next bill at retail rate.
-At the end of 12 months, all unused net excess generation credits will revert to the utility without any compensation to the customer.

Residential renewable energy tax credit:

-This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
-Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
-The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
-This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion:

-This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
-The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
-Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages:

-This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.