Renewable Energy Systems Sales Tax Exemption
December 16, 2025
Vermont law provides for a 100% exemption from the state’s 6% sales tax for solar thermal systems used to heat water and associated thermal storage systems.
Vermont law provides for a 100% exemption from the state’s 6% sales tax for solar thermal systems used to heat water and associated thermal storage systems.
Vermont’s Renewable Energy Resource Center provides funding for the installation of advanced wood pellet heating systems by pre-approved installers. Funding opportunities vary by system type, property size, and the applicant’s sector. Commercial, non-profit, industrial, and institutional entities can receive up to $25,000.
The Clean Energy Development Fund provides funding for renewable energy and energy efficiency measures. Eligible recipients include agricultural entities, businesses, non-profits, institutions, and industrial entities. There is a wide range of qualifying renewable energy technologies.
The Vermont Economic Development Authority provides loans under this program for a variety of projects, including renewable energy and energy efficiency projects. Loans can be made at fixed rates on terms of up to 10 years in amounts of up to $1,000,000, not exceeding 50%
Businesses, individuals, partnerships, limited liability companies, non-profits, and municipalities undertaking renewable energy or energy efficiency projects are eligible to receive funding through the Vermont Economic Development Authority’s Commercial Energy Loan Program. Loans are available up to $6 million with the variable rate option and $500,000
Vermont’s Renewable Energy Standard requires all retail electricity suppliers to source a certain percentage of their annual electricity sales from renewable resources. The requirement has been increasing 4% annually since the initial 2017 benchmark, which was 55%. The RPS will ultimately require 75% of electricity
Vermont offers businesses a tax credit for renewable energy equipment installation. In order to be eligible for this credit, the project must also qualify for the Federal Business Energy Tax Credit. The credit is equivalent to 24% of the Vermont property portion of the Federal