Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
With the federal ITC expired and no state rebate, Vermont's sales tax and property tax exemptions are the ONLY remaining tax benefits for solar. Here is what they save you.
Sales Tax Saved
~$1,830
one-time (6%)
Property Tax/yr
~$400
annual
25-Year Total
~$11,830
combined
Federal ITC
$0
25D expired
Vermont's 6% sales tax does not apply to solar equipment, installation labor, or battery storage. This is automatic — no application needed.
Based on average 10 kW system at $3.05/W = $30,500 gross cost. 6% of $30,500 = $1,830.
How It Works
Automatic — no application needed. Your installer will not charge 6% sales tax on eligible solar components. You do not need to file for a refund — the tax is simply not collected. The savings means you pay the listed price without any tax markup.
Solar systems under 50 kW are exempt from property tax assessment in Vermont under 32 V.S.A. section 3802.
Solar energy systems under 50 kW are exempt from property tax assessment in Vermont. The added home value from solar is not taxed.
Based on typical 10 kW system adding ~$20,000 in assessed value at VT average property tax rate (~$2.00/$100).
To prevent confusion: here is what Vermont does NOT offer for solar.
Expired December 31, 2025. $0 for homeowner cash/loan solar purchases. Do NOT reference residential ITC. This was the largest single incentive for solar. It is gone. A 10 kW system would have saved $9,150 at 30%.
Vermont has never offered a direct state solar rebate. Unlike MA (SMART), RI (REF), or CT (Energize CT), Vermont has no per-watt or per-kWh state incentive for residential solar.
Vermont does not offer a state income tax credit for solar installations. Massachusetts offers a $1,000 credit through Schedule EC — Vermont has no equivalent.
Expired December 31, 2025. $0 for heat pumps, insulation, etc. Previously covered heat pumps ($2,000), insulation ($1,200), etc.
Total tax exemption value for a typical 10 kW VT solar system at $3.05/W.
Sales Tax Saved
$1,830
one-time (year 1)
Property Tax/yr
$400
every year
First Year Total
$2,230
sales + property
25-Year Total
$11,830
all tax benefits
These are the ONLY remaining tax benefits for Vermont solar in 2026. Combined, they reduce the effective cost by approximately 39% over 25 years.
How Vermont's solar tax exemptions compare to other New England states.
| State | Sales Tax | Property Tax | State Income Credit | Est. First Year |
|---|---|---|---|---|
| Vermont | 6% exempt | Exempt under 50 kW (automatic) | None | ~$2,200 |
| Massachusetts | 6.25% exempt | 20-year exemption (automatic) | $1,000 (MA Schedule EC) | ~$3,500+ |
| Rhode Island | 7% exempt | 20-year exemption | None | ~$2,700+ |
| New Hampshire | No sales tax (NH advantage) | RSA 72:62 (~66% of towns) | None | ~$584/yr (property only) |
| Connecticut | 6.35% exempt | Varies by town | None | ~$2,000+ |
All states lost Section 25D (federal ITC). First year estimates vary by system size and local tax rates. MA has SMART and ConnectedSolutions on top of tax exemptions. RI has REF rebates. VT has only tax exemptions plus GMP battery program.
Everything you need to know about solar tax benefits in Vermont.
Yes. Vermont exempts solar energy equipment, installation labor, and battery storage from the 6% state sales tax. This is automatic — you do not need to apply or claim anything. Your installer will not charge sales tax on eligible components. For a typical 10 kW system at $30,500, this saves approximately $1,830 in taxes you would otherwise pay.
Under 32 V.S.A. section 3802, solar energy systems under 50 kW are exempt from property tax assessment in Vermont. This means the added home value from your solar installation is not included in your property tax assessment. For a typical 10 kW system that adds approximately $20,000 in home value, at Vermont's average property tax rate of ~$2.00 per $100, this saves approximately $400 per year.
The property tax exemption for systems under 50 kW is automatic under Vermont law. You do not need to file a separate application. However, it is recommended to confirm with your town assessor that the exemption has been properly applied to your assessment after installation. Virtually all Vermont towns honor this exemption as it is a state statute, not a local option.
No. Vermont does not offer a state income tax credit for solar installations. The only state-level tax benefits are the sales tax exemption (6%) and the property tax exemption (32 V.S.A. section 3802). Massachusetts offers a $1,000 state income credit (Schedule EC) — Vermont does not have an equivalent.
The federal residential solar tax credit (Section 25D) expired December 31, 2025. Vermont homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. The only federal credit still available is Section 48/48E at 30% for third-party owned systems (PPA/lease), where the financing company claims the credit. This requires construction to begin before July 4, 2026.
For a typical 10 kW system: sales tax exemption saves ~$1,830 in year 1 (one-time). Property tax exemption saves ~$400 per year, or approximately $10,000 over 25 years. Combined, the total 25-year tax benefit is approximately $11,830. This is modest compared to states with active rebates or income credits, but it is currently the ONLY tax benefit available for Vermont solar.
Tax exemptions are just part of the VT solar picture.
City-by-city pricing for all 8 VT markets
Read moreFull analysis of post-ITC economics
Read moreCategory rates and PUC cuts
Read morePowerwall lease and BYOD incentives
Read moreWhich financing saves most in VT?
Read moreSee exact savings for your system
Read moreGet a customized analysis of your sales tax and property tax savings based on your specific system size and town. Includes net metering projections and GMP battery program options.
Sales tax + property tax exemptions = $11,830 over 25 years. The only remaining VT solar tax benefits in 2026.