Vermont Solar Power Rebates, Tax Credits, and Incentives
Vermont, home of Howard Dean, Jim Jeffords and many a progressive leader, has sadly not done much in the past few years to protect the mountainsides that are home to that famous fall foliage, or the state’s many lakes, trails, and farms. In the spring of 2007, House Bill 520, which was written to help reduce energy use and promote development of renewable energy, was passed by both the Vermont House and Senate. Unfortunately, Governor Jim Douglas vetoed it. For a state known for its small farms, fall foliage, maple syrup, and world class skiing, Vermont can do more to protect its environment.
STATE LEGISLATION
Vermont, despite its progressive reputation, has passed only one bill to promote solar energy in the past 2 years. This year, the Vermont legislature passed House Bill 343. This measure provides a business income tax credit for companies that install solar, geothermal, fuel cell, and micro-turbine electricity systems. On the residential side, the State has not made any new progress in the past couple of years, beyond continuing to fund its Solar and Small Wind Incentive Program. This program was originally started in 1999.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
Solar & Small Wind Incentive Program
Vermonters do benefit from a the Solar & Small Wind Incentive Program, originally started in 1999, which offers them rebates of $1.75/watt for individuals and businesses who install solar electricity systems, and $3.50/watt for multi-family, low-income customers. The program also provides rebates of $1.75 per 100 Btu/day to individuals and businesses who use solar water heaters and $3.50/100 Btu/day for multi-family, low-income customers. The maximum rebate is $8,750 per electric or hot water system or up to $35,000 for low-income customers.
Have a look at Vermont’s solar energy programs:
Sales Tax Exemption
State Rebate Program
* Solar & Small Wind Incentive Program
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
Despite being in one of the cloudier regions of the US, Vermont’s solar rating is classified as Good, which makes installing a solar electricity system a great idea. A sample 3Kw system in Burlington would cost about $63,000 before any rebates are applied. After taking the $2,000 Federal tax credit, and applying the Solar & Small Wind Incentive Program rebate of $8,750 ($1.75/watt installed), the cost of installation comes down to $52,250. The system would pay for itself in 17-24 years (assuming usage of 1,300kWh/Month at a rate of $0.1122/kWh, but over that time, it will have saved 160 tons of CO2 emissions. What is even more interesting, is that with City of Burlington electricity prices estimated to rise to $0.114/kWh in 5 years and to $0.172/kWh in 25 years, the savings will only increase.
- 700 square feet of roof area needed
- $15,300 estimated property value increase
- Estimated utility savings over 25 years of $32,101
- Greenhouse gas reduction equivalent to planting 35 trees or taking 2 cars off the road
CONSENSUS
Vermont’s legislature has not done much lately to further its attempts at developing solar energy resources. With such an amazing natural environment, and its reputation for progressive politics, the legislature needs to take more action. After all, Vermont has been host to SolarFest, The New England Renewable Energy Festival, since 1998. With this kind of grassroots activity, there is definitely public support for solar energy initiatives, and the legislature should get involved too.
Click here to have multiple solar installers bid to upgrade your Vermont home or business.
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