2023 Solar Incentives Guide for Bennington, VT - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Bennington?

Source: https://www.dsireusa.org/

Solar incentives are intended to encourage people to make the switch to renewable energy by offering financial incentives meant to lower the burden of solar panel installation and use. You may qualify for different types of incentives, including discounts, cash back or monthly utility bill credits, depending on your situation. Certain incentives come from your specific utility company, county or municipality, some from the Vermont government and others from the federal government. Categories of solar incentives include:

• Net Metering: Net metering is an incentive you can get after your solar system is up and running. If you have a net metering agreement in place with your Bennington utility company, they will subtract the value of the excess energy produced by your solar system from your utility bill each month. In some locations, this is a dollar-for-dollar credit, while in other areas you may make back a percentage of the value.
• Tax Exemptions: These could come in the form of property tax exemptions, which let you exclude the value of your solar system when paying property tax on your house. You may also qualify for an exemption on sales tax at the time of purchase.
• Rebates: Rebates, or cash back after a purchase, are normally given prior to any solar tax credits being calculated. Solar rebates might be provided by your local utility company, by your county or by your state.
• Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the government.

Federal Solar Incentives

Federal incentives are the kind of incentives that you are most likely to have heard of. One of the incentives many people are likely familiar with is the Federal Solar Investment Tax Credit (ITC). This incentive is a tax credit for a certain percentage of the cost of your solar system.

The ITC can be applied to solar panels installed after January 1, 2006 on a primary or secondary residence in the United States that you own. Originally, the tax credit was for 30% of the total cost — for panels, equipment, labor and accessories — although that amount may range from 26-30%, depending on the installation date of your solar system. There is no cap on the claim amount.

Talking to your local Bennington solar panel installer is the best way to learn more about how the ITC may apply to your situation.

The ITC was both renewed and expanded by the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. The new Clean Energy Credit extends until 2035. Homeowners are now eligible for a 30% credit for solar systems installed between January 1, 2022 and December 31, 2032. The credit will then decrease annually until its expiration. Starting in 2023, the expansion will also make it easier to get credit for energy storage systems.

Click here to learn more about the new Inflation Reduction Act. To understand how the new Clean Energy Credit applies to you, talk to your local Bennington solar installation expert.

State & Local Solar Incentives

Some solar incentives may be provided at the state and local level. Similar to federal incentives, these may include rebates, tax credits and more. These incentives might be offered by the Vermont government, or by your county or municipality. Some are ongoing, while others are available for a limited time.

Next Steps for Installing Solar in Bennington

The variety of available solar incentives has enormously increased the use of solar power nationwide over the past 15 years. You may receive solar incentives from the federal government, the Vermont government or from your local utility company. Your local Bennington solar panel installation expert can help you learn more about which incentives you can apply for, and get you feeling good about making the change to renewable energy today.