Right now you can take advantage of a 30% Federal Income Tax Credit to help pay for your system. This credit is based on the system price and is taken for the year that the system was completed. The tax credit has been renewed for an additional 5 years. You will also receive a bonus of 4 cents for every kWh your produce under the net metering law in VT as noted below and on our net metering page.
NET METERING- All residential arrays can also take advantage of net metering laws in Vermont. There is a $.04/kWh adder in Vermont, so if you are paying $.148 per kWh will get paid $.188 to produce it.
TAX CREDITS- It is a really good time to purchase solar power if you are a business in Vermont. Businesses can take advantage of a 30% Federal Income Tax Credit to help pay for your system, along with a 7.2% Vermont Solar tax credit. The installation price is reduced by 37.2% right off the top.
NET METERING- Businesses can also take advantage of Vermont’s net metering laws. So if you are paying $.1478per kWh will get paid $.188 to produce it.
DEPRECIATION- Businesses can also take advantage of a tax break for depreciation of the installation. Renewable energy systems can be depreciated according to the accelerated 5-year MACRS depreciation schedule which, depending on your business’s tax bracket, can help reduce your system payback rate even faster.
RENEWABLE ENERGY CREDITS- Larger systems may be able to sell their REC’s on the market. Currently 1 REC, which is 1 megawatt/hour of production, is worth around $50. For 100 kW system that translates to around $6,250 per year for 15 years. This is another way to increase your ROI.