2023 Solar Incentives Guide for Middlebury, VT - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Middlebury.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2023 and beyond)
- Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
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Updated September 15, 2023
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What Solar Tax Credits, Incentives, and Rebates are Available in Middlebury?
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
Residential: $0.40/kWh/yr
Commercial: $0.40/kWh/yr
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
Source: https://www.dsireusa.org/
The term "solar incentives" refers to a range of financial incentives designed to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. You might qualify for several kinds of incentives, such as cash back, discounts or monthly utility bill credits, depending on your situation. Some incentives come from your specific utility company, county or municipality, some from the Vermont government and others from the federal government. Some solar incentives you might qualify for are:
- Rebates: A rebate is a partial refund after the purchase of your solar panels. These may be offered by your local utility company, your state or your county. The discount that rebates offer is normally applied to the price of solar panels before calculating tax credits.
- Tax Exemptions: Your solar panel system might qualify for exemptions on both sales and property tax. Sales tax exemptions are effective at the time of purchase. Property tax exemptions let you exclude the value added by your solar panels when calculating property taxes on your home.
- Net Metering: You can sign a net metering agreement with your Middlebury utility company, that may apply to all or a percentage of the excess electricity your solar panels generate. Your utility company will then subtract this value from your utility bill each month.
- Tax Credits: Tax credits lower, dollar-for-dollar, how much income tax you owe the government. These differ from tax deductions.
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Federal Solar Incentives
When thinking about solar incentives, you likely think of federal incentives first. The solar incentive that you may be most familiar with is the Federal Solar Investment Tax Credit (ITC), which gives you a credit on your taxes equal to a specified percentage of the cost of your solar system.
The ITC was originally for 30% of the total cost of solar panel installation, and has fluctuated slightly over time between 26-30%. The installation date of your solar system will determine what percentage you qualify for. The total installation cost includes the panels themselves as well as the cost of accessories, equipment and labor. There is no maximum claim amount. The ITC applies to solar panels installed after January 1, 2006 on your primary or secondary residence. The residence must be owned by you and in the United States.
To understand exactly how much the ITC could save you, speak with your local Middlebury solar panel installation expert.
The ITC has been renewed and expanded following the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. Homeowners can now receive a credit equal to 30% of the total costs of solar system installation for projects that began after January 1, 2022 and will be finished by the end of 2032. The credit percentage will then begin to decrease annually until the Clean Energy Credit ends in 2035. The program expansion also makes it easier to get credit for energy storage systems, beginning in 2023.
More information about the new Inflation Reduction Act can be found here. Your local Middlebury solar panel installers are the best people to answer your questions about the new Clean Energy Credit and how it applies to you.
State & Local Solar Incentives
There are often state solar incentives available in addition to federal ones. Tax credits, rebates and more can be offered at a more local level. Some incentives are ongoing, while others are available for a limited time. They might be offered by your county or municipality, or by the Vermont government.
Next Steps for Installing Solar in Middlebury
The expanding number of available solar incentives has helped tremendously increase the adoption of solar energy nationwide over the past 15 years. You may receive solar incentives from the federal government, the Vermont government or from your local utility company. It is a good idea to talk to your local Middlebury solar installer to learn more about these incentives and to ensure that you're getting the most money possible for your solar system.
EcoWatch's Middlebury, VT Solar Incentives FAQs
I already have solar panels installed. Does my system qualify for any incentives?
If your solar system was installed after January 1, 2022, you may qualify for the newly increased 30% tax credit under the Inflation Reduction Act. If your system was installed between 2006 and 2021, you might qualify for a tax credit between 26% and 30%, depending on the date of installation. Speaking with a representative from the company that installed your solar system, or any local Middlebury solar installer, can help you learn what incentives you might want to apply for.
How much can I save annually on my electric bill if I install solar panels on my Middlebury home?
When you add solar panels to your home in Middlebury, you can expect to save around $1,207.17 per year, or around $22,936.31 over 20 years.
What are some environmental benefits of adding solar panels to my home?
Solar energy is renewable — by switching where you get your energy, you help reduce the strain on our planet's resources. Solar panels can also lower your home's CO2 emissions by 200 pounds a year, or around 4,000 pounds over 20 years.
When does the federal solar tax credit end?
The federal solar tax credit, formerly known as the ITC and now titled the Clean Energy Credit, is set to end January 1, 2035. The current 30% credit will end in 2032, replaced by a 26% credit in 2033 and a 22% credit in 2034.
If I trade in my appliances for ones that can utilize solar energy, are there any credits I can claim?
The recently passed Inflation Reduction Act introduces multiple incentives designed to reward homeowners who make eco-friendly upgrades. Some incentives include rebates and tax credits for installing new electric appliances. You can find more details about these incentives here.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.