The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
Vermont Solar Incentives Overview
Vermont offers modest solar incentives through the Clean Energy Development Fund ($0.10/W), net metering with a solar adder, and a sales tax exemption.
Vermont average solar cost: $2.80/W • Payback: 13 years • 25-year savings: $40,067
Available Incentive Programs in Vermont
Net Metering
Retail rate credit plus solar adder
Eligibility:
Systems up to 500 kW in Vermont
How to Claim:
- 1Installer files net metering application with your utility
- 2Credits calculated at retail rate plus applicable adders
Note: Ongoing program
Program websiteClean Energy Development Fund
$0.10/W
Max: $3,500
Eligibility:
Residential solar in Vermont
How to Claim:
- 1Apply through the Vermont Clean Energy Development Fund
- 2Submit installation documentation
- 3Receive rebate within 6-8 weeks
Note: Subject to available funding
Program websiteSales Tax Exemption
6% sales tax exempt
Max: $2,000
Eligibility:
All residential solar in Vermont
How to Claim:
- 1Automatic — installer excludes sales tax
Note: Permanent exemption
Program websiteReady to Get a Solar Quote?
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Federal Credit: Not Available for Homeowners
Section 25D (the Residential Clean Energy Credit) expired December 31, 2025. Homeowners in Vermont who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Only third-party owned systems (lease/PPA) qualify for the 30% commercial ITC under Section 48/48E.
Other State Incentives
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