Solar is a complicated decision and OhmHome has compiled this guide to Vermont solar with the cost of solar panels in Vermont and advice on how to estimate cost and savings, navigate state and federal incentives, and find the best solar companies in Vermont.
Solar Trends in Vermont
Vermont solar permits decreased 50% to 3 in June from 6 in June 2016 and decreased 63% from May 2017 (YTD increase of 3%).
Cost of Solar Panels in Vermont
The cost of solar has dropped significantly in recent years due to the increase in module supplies and other supply chain efficiency improvements. According to the U.S. Department of Energy’s Q4-16 Sunshot report, the median price of residential solar in major markets was $4.20 per watt with the lowest 20% at approximately $3.50 per watt.
Solar Incentives in Vermont
Vermont has a Standard Offer Program, or a feed in tariff which guarantees a fixed payment for solar generation for 25 years.
The state previously offered the Small Scale Renewable Energy Incentive Program for residential solar systems, but funds have been exhausted.
Federal Solar Tax Incentives
The IRS offers a 30% tax credit for solar systems based on the cost after state rebates and credits (discussed above). It is important to note that that federal tax credit only applies to purchased systems and you need sufficient tax liability to claim the credit. The federal solar tax credit was set to expire in 2016, but was recently extended through 2019, at which point it will start to decrease to 10% by 2022. The IRS form 5695, Residential Energy Credits can be found here.
Solar Financing in Vermont
The number of solar financing options has expanded significantly in recent years to includes a number of low-interest rate loans, as well as power purchase agreements or solar leases. To learn more, refer to our lease or buy solar guide.