Commercial Solar Incentives in Vermont

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

VT Sales Tax Exemption

Vermont commercial businesses and ag producers who install a solar system are 100% exempt from the state's 6% sales tax for the purchase of their solar equipment. The incentive automatically applies during the solar system purchase. 

VT Tax Exemptions for Small Systems

Commercial properties in Vermont with an energy-generating system with a capacity of 50 kW or less are exempt from the Uniform Capacity Tax, Education Property Tax, and Municipal Property Tax. Properties with systems larger than 50 KW may be subject to some of these taxes. 

Agricultural Energy Loan Program

The Vermont Agricultural Credit Corporation (VACC) offers the the Agricultural Energy Loan Program (AELP) designed to provide loans to agricultural companies for renewable energy and energy efficiency projects. Project funding by VACC is negotiable, and the maximum loan amount is $5 million with variable rates and terms depending on the project. 

Vermont business owners can take advantage of several federal solar incentives in combination with the state's current incentive programs. When combined, these incentives can significantly reduce the cost of installing a solar system.

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Vermont may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Vermont business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Vermont Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

Learn More!

Connect with a local installer in Vermont to see which incentives can contribute to your solar system. 

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