The PACE (Property Assessed Clean Energy) program allows for Vermont residents to finance your system via a low-interest loan. Your town must have established a PACE district through popular vote to be eligible. This program is administered through Efficiency Vermont. Click here to view current PACE districts by town and program details.
BURLINGTON, VT. RESIDENTS:
Burlington Electric administers the PACE program within City limits. You can finance the cost of your PV (and other selected energy projects) system through the City's PACE program. it offers attractive interest rates and terms, and the payment appears as a monthly charge on your Burlington Electric Department (BED) bill. Click here to download full details of how the program works.
For Commercial Systems (including industrial and agricultural there is a State Investment Tax Credit of 7.2% of the system cost – for systems installed no later than 12/31/2016. All equipment must meet the same requirements as the Federal Investment Tax Credit. This credit may be carried over for 5 years.
Commercial renewable energy systems may also be depreciated according to the accelerated 5-year MACRS depreciation schedule which, depending on your business’s tax bracket, can help reduce your system payback rate even faster. In all cases, we recommend that you work closely with your accountant who will be more familiar with how the potential benefits of these incentives relate to the unique circumstances of your tax situation.
If you have been considering a solar electric (PV) system for any length of time, you may have come across several companies offering lease-to-own packaged systems (or perhaps in-house financing, more about that later). While little or no money down on the surface seems attractive, all is not what it seems.
It's no secret that you will pay more with any financed product, as opposed to buying up front. And in the case of lease to own solar systems, there are several factors which work against the lessee, some obvious, some hidden in the typical lease agreement.
Unfortunately the Vermont Small Scale Renewable Energy Incentive Program no longer exists, as of 12/31/2014.
The I.R.S. allows for a tax credit of 30% of the installed cost of the system. This is not a deduction, it is flat 30% reduction in Federal tax liability. Both residential and commercial systems are eligible. The credit can be carried over for an additional year, if not used entirely in the year of installation. Recently, the tax credit has been extended at 30% until December 31, 2019, with reductions beyond that point.