2023 Solar Incentives Guide for Essex, VT - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Essex.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2023 and beyond)
- Ways to optimize your solar investment
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What Solar Tax Credits, Incentives, and Rebates are Available in Essex?
Local Option - Property Assessed Clean Energy
Standard Offer Program
Local Option - Property Tax Exemption
Uniform Capacity Tax and Exemption for Solar
Uniform $4.00/kilowatt property tax payment for systems 50 kW and greater
Renewable Energy Systems Sales Tax Exemption
Residential Energy Efficiency Rebate Programs
Emerging Tech Window ACs (only for window ACs that meet ENERGY STAR's 2019 Emerging Tech Award Criteria): $200
Heat Pump Heating & Cooling System: Up to $500 off at time of purchase
Clothes Dryers: $200 or $400
Dehumidifiers: Up to $40
Heat Pump Water Heaters: Up to $600
Swimming pool pumps: $250 or $500
Lighting: Reduced prices at participating retailers
Horticultural Lighting Fixtures for Indoor Growing: $100
Smart Thermostats: Up to $100
Home Performance with Energy Star: Up to $2,000
Vermont Gas - Residential Energy Efficiency Program
Combination Furnace: $800
Hot Water Boilers: $600-$800
Combination Boilers: $900-$1,100
Direct Vent Space Heater: $200
Water Heaters: $200
Tankless Water Heaters: $300-$500
Indirect Water Heater: $100
Drain Water Heat Recovery: $300
Solar Hot Water: $950
Solar Furnace: $200
Residential Heating Systems Rebate Program
Central Wood Pellet Furnaces and Boilers: $2,000 rebate
Furnaces and Boilers: $250 rebate
Cold Climate Heat Pumps: $600 - $800 discount
High Performance Circulator Pumps: $15 - $50 discount
Small-Scale Renewable Energy Incentive Program
Special Category: $0.80/kWh/yr
Advanced Wood Pellet Heating:
Flat Incentive: $3,000
Custom Incentive: $1.25/sq-ft; $10.00/MBH thermal storage tank adder
Federal Residential Renewable Energy Tax Credit
The term "solar incentives" generally refers to financial incentives designed to encourage increased use of renewable energy by making installing and using solar panels more affordable. Different kinds of incentives, like discounts, cash back or credit towards your monthly utility bill, might be available to you. Certain incentives may be offered by the state of Vermont, by your utility company or by county or municipality, while other incentives are federal. Categories of solar incentives include:
- Net Metering: Net metering becomes relevant after your solar system is up and running. If you have in place a net metering agreement with your Essex utility company, the company will subtract the value of the excess energy produced by your solar system from your utility bill each month. In some places, this is a dollar-for-dollar credit, while in other places you might make back a percentage of the value.
- Tax Exemptions: These could come in the form of property tax exemptions, which would allow you to ignore the value added by your solar panels when paying property tax on your home. You may also qualify for an exemption on sales tax at the time of purchase.
- Rebates: Solar rebates might be offered by your local utility company, or by your county or state. These rebates work as partial refunds that are applied after you pay for solar panels and before tax credits are calculated.
- Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the federal government.
Federal Solar Incentives
When you hear the term "solar incentives," federal incentives may be the first thing that comes to mind. The Federal Solar Investment Tax Credit, or ITC, is probably the best-known federal solar incentive. The ITC allows you to claim a tax credit for a set percentage of the cost of your solar system.
The ITC applies to the total cost of installing a solar system, including the panels themselves as well as labor, accessories and equipment. This credit can be claimed for panels installed after January 1, 2006 on a primary or secondary residence that you own, as long as it is located in the United States. The tax credit ranges from 26-30% of total costs depending on when your project was completed. There is no maximum claim amount.
Talking to your local Essex solar panel installer is the best way to learn more about how the ITC may apply to your situation.
In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now titled the Clean Energy Credit. The new Clean Energy Credit now runs until 2035. Homeowners can now receive a 30% credit for solar systems installed between 2022 and 2032. This credit will then see a slight annual decrease 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. The best way to fully understand how the new Clean Energy Credit will apply to you is to talk with your local Essex solar panel installation expert.
State & Local Solar Incentives
Some solar incentives may be provided by state and local governments. Similar to federal incentives, these can include tax credits, rebates and more. Incentives might be offered by the state of Vermont, or by your county or municipality. Some incentives might only be available for a limited time, while others are ongoing.
Next Steps for Installing Solar in Essex
The expanding number of solar incentives available has enormously increased the use of solar power nationwide over the past 15 years. You can get solar incentives from your local utility company, the federal government or the Vermont government. Getting in touch with your local Essex solar panel installation expert is the right first step towards making sure you get all the incentives you qualify for when you switch to solar energy.
EcoWatch's Essex, VT Solar Incentives FAQs
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